Voluntary Termination on PCP contract

tomspence24

pgilc1 wrote: »

Your analogy is all wrong.

The residual value is whats being questioned here. Basically, they have set up a finance agreement with a balloon payment and the terms around them taking the car back at that point for that value is that is of good condition and has X,000 miles on it. If it doesnt, then the PCP balloon figure will be incorrect and an adjustment needs to be made. That is part of the finance agreement.

However the voluntary termination is a legal right and is not linked to the finance agreement. The O/P would be exercising their statutory rights in relation the Credit Act of 1974 where in the small print of the contract it states once half the total value of the car had been paid there is 'nothing more to pay', subject to the car being returned in good condition as defined under 'fair wear and tear'. This would probably be a guideline taken from a body such as the BVRLA

Relative to excessive milage the exception to that be that they could probably envoke a mileage claim IF the mileage was that high that they felt they could do so under 'fair wear and tear'.

Thanks Paul.

I agreed to 20k and am currently at 35k so they may try it on with the fair wear and tear claim....I'm going to have to call them and check I think (with all of this information in my back pocket of course!)

oscarward

OP original poster

motorguy

tomspence24 wrote: »

Thanks Paul.

I agreed to 20k and am currently at 35k so they may try it on with the fair wear and tear claim....I'm going to have to call them and check I think (with all of this information in my back pocket of course!)

20K over the three year term?

How old is the car now?

tomspence24

20k over 48months, car was first registered in Nov '09 so just over 3 yrs old.

motorguy

tomspence24 wrote: »

20k over 48months, car was first registered in Nov '09 so just over 3 yrs old.

So, you've put 35K miles on it, how many on it in total?

tomspence24

It was brand new so 35k

motorguy

tomspence24 wrote: »

It was brand new so 35k

I cant see there being much of a problem. Thats just average miles on a three year old car.

If you were doing 20K per year on it, then i think that would be different.

Personally, i'm not sure i would be 'asking' them about it, as it could trigger them to chase it up with you.

The car will be picked up, inspected and taken to an auction probably without anyone who has access to both the finance agreement and the car seeing it.

I would probably chance it.

meer53

My PCP car was VT'd. It was inspected on pick up, from my house,(very closely !) and the mileage was noted on the forms. The driver told me he was taking it straight to the auction from my house. The forms however are passed to the lease company to check. I've never been charged anything, i was within my mileage anyway, but i would imagine if it was excessive, you would be charged.

motorguy

meer53 wrote: »

My PCP car was VT'd. It was inspected on pick up, from my house,(very closely !) and the mileage was noted on the forms. The driver told me he was taking it straight to the auction from my house. The forms however are passed to the lease company to check. I've never been charged anything, i was within my mileage anyway, but i would imagine if it was excessive, you would be charged.

But have you any evidence of that?

Hintza

pgilc1 wrote: »

But have you any evidence of that?

Have you any evidence you won't be charged?

The OP has a contract that is based on a certain mileage per annum they are in breach of that. The T&Cs will cover this eventuality and have an excess mileage rate which the OP will be expected to pay (+VAT).

Who ever takes out a 5k a year mileage allowance and then does 12k a year? The only people that do that are those prepared to pay the balloon at the end of the day as it is a fairly cheap way of running a high mileage car.