insurance write off excess milage

ianh68

Hi all

Brand new here so please bump if this is the wrong place. Anyway conditional sale agreement from moneybarn. Car written off. Got settlement figure and all paid but...

On reading agreement it says if car is written off I have to pay excess mileage costs. Seems wrong to me. I have fully satisfied the agreement and paid in full so how can they claim excess miles or do they only have that if insurance doesn't cover full settlement.

Thanks

thebritishbloke

What kind of agreement was this? Did you own the car or was it a lease?

I can't see it holding up in court that you have to pay excess mileage for a written off car, what are they going to ask you to pay, future theoretical excess mileage?

Thrugelmir

ianh68 wrote: »

On reading agreement it says if car is written off I have to pay excess mileage costs. Seems wrong to me. I have fully satisfied the agreement and paid in full so how can they claim excess miles or do they only have that if insurance doesn't cover full settlement.

Thanks

Rather late to start reading the agreement now. As it's the terms you agreed to.

ianh68

The British bloke it was a conditional sale agreement.

Thrugelmir forgive the spelling I tend to only write out real words. Your comment demonstrates two things. Firstly you are clearly the type of person who feels they need to say something even when they have nothing to say. Often this is a sign of deep rooted insecurity. Secondly it shows an absolute lack of an iota of empathy for which I pity you.

The agreement was indeed read and indeed signed. I now face an unexpected circumstance and thought to query the application of a term. If I must indeed pay then I must but the purpose of these forums is, I believe, for individuals to share knowledge and advice. So I refer to the final clause of the last sentence.

PeacefulWaters

Oh what a horrible position to be in. I'd be awfully upset if it was me. I do hope you're coping ok.

Have they actually come back to you and asked for more?

ianh68

Thanks peaceful waters. Yes am fine and well it's not a massive sum just don't like paying out when I shouldn't.

They haven't yet so was wondering and if I can advance arguments against etc.

Thanks for thoughts

macman

On what basis are you intending to challenge the excess mileage clause which you agreed? It may well 'seem wrong' to you but that doesn't make it unenforceable.

PeacefulWaters

macman wrote: »

On what basis are you intending to challenge the excess mileage clause which you agreed? It may well 'seem wrong' to you but that doesn't make it unenforceable.

I suppose the logic being used is that the insurer has covered the loss so why should there be a subsequent charge?

My logic would be that the insurance settlement will have taken the higher mileage into account. Hence the company have received less than they would have done. Hence I think it is reasonable to enforce any excess mileage clause.

ianh68

Sort of. My point is that I have fully paid the finance off. Had I done that in cash there would be no charge. The fact it comes from a third party seems odd. I get the excess mileage if you are handing goods back of course as it affects value. But either it is a conditional sale agreement regulated by cc a in which case I pay what is due or it isn't. They would only ever have received the same if I had done one mile or one hundred thousand had I paid them so why is it different for third party payment. Their only argument I can see is that had it not been written off they would not have had to rebate the interest but that seems marginal at best to me.

glentoran99

Could it be they would have gotten more money had there been less miles? So they are entitled to the difference?

Surprised the insurance paid of the full amount of the finance TBH doenst usually work that way

thebritishbloke

Did your car insurance include legal cover? Might be worth looking in to it and if it did, use it. I'm pretty sure that this would be similar to a PCP agreement, where if the car is written off, you just owe them the agreed rest of the finance (i.e. how ever many monthly payments left x monthly amount, minus saved interest).