RCI - so can i end early?

ben_m_g

Feel a bit confused, the fact that my paperwork is already in storage, is really not helping..

I took out a four year (personal) contract with Renault 05/2013 for a car, with the understanding that should things go south or change dramatically, after 50% payment, I could return the car should it be in good condition. regardless of the mileage. (or keep the car and pay the balloon payment.) This I discussed with the sales guy at the time.



As it happens things have changed, the car pool I used to rely on, has fallen apart and I am having to complete the 100 mile commute myself. (With not the most economical car, and quickly going further over mileage.)

Speaking to Renault, they have giving me some news, I have paid a little over 50% (great) but mileage would be chargeable(?)

I have either a PCP or HP agreement (I will try to find out, if I can find my paperwork) and over mileage, a small bump that I will settle before termination.

But do I have to pay the mileage?

sheramber

PCP usually states the allowable mileage with a mileage charge for all miles in excess of the contract.

It will depend on what your contract says.

A google search for Renault PCP states

Renault Selections is a PCP arrangement (Personal Contract Purchase) that allows you to enter into an agreement over a set period of time (usually 3 years) with an agreed maximum mileage

ben_m_g

I have been searching around and found this from the below website:

"You cannot be billed for excess mileage, although you can be sure the finance company will try to charge you for it."

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

It's not a gov website, so I was hoping there may be something I could take back to them and quote.

Hintza

This comes up every now and again and I can not understand why xxxxmiles/annum is not or can not be enforceable in the contract.

It is hardly an unfair term.

AdrianC

If you're on a 10,000mile pa contract, and you've done 25,000 miles after two years, why would you NOT be charged extra for those extra 5,000 miles?

ben_m_g

At no point in my post did I say it was unfair.
At no point in my post did I say I am 5000 miles over my limit.

I am in a contract that is racking up a debt. I want out of this contract with minimal fees. As would any moneysaver.

I was told at point of sale that this would be fine, now they are saying the opposite, I just want some clarification.

AdrianC

ben_m_g wrote: »

I was told at point of sale that this would be fine, now they are saying the opposite, I just want some clarification.

Your original post contains no contradiction.

You say you were told you could return the car, regardless of mileage. You can.
You now say you are told you will have to pay for the excess mileage. You can still return it, so the original statement is accurate.

There would only be a contradiction if you were now being told that you could not return it because of the mileage, and would have to wait until the mileage was back on-track with the contracted mileage - so, in the example I used, wait until you were back to 10k/year, so if you didn't use the car any more, wait six months.

The numbers I gave were purely for illustration. Clearly, I have no idea what mileage your contract says or how many you've done.

If we're all in agreement that it's fair, this is a non-thread.

almillar

after 50% payment, I could return the car should it be in good condition. regardless of the mileage.

These agreements almost always have a mileage allowance. The garage will factor in the anticipated mileage, and therefore the anticipated value, of the car at the start of the deal, and you'll pay more per month for more miles.
Have a look through your paperwork and I'm sure you'll find the mileage allowance you were given at the time, as well as how much per mile you'll be liable for if you go over.
It's part of a contract, so is surely enforceable.
Do you think you were misled or just misunderstood?

smitchy73

The argument in regards to the excess mileage is one that finance companies will try to charge you for if you do a Voluntary Termination, however, in the articles I've read the law and statute that is the Consumer Credit Act 1974, section 99 but liable to section 100, which basically says that as long as you pay up to the 50% of total amount payable, this includes all interest etc, but also included towards the 50% is deposit or trade in values.

The CCA states along the lines of that as long as 50% has been paid you can return the vehicle without a need to pay any more. This overides the terms and conditions of the lease paperwork. It doesn't say that you wont have to pay anymore with the exception of excess mileage charges, it states 'with no more to pay'.

There is an argument in regards to the liability from wear and tear from the excess mileage but this would be hard to prove, t's and c's usually states if it is in a good state of repair, and maintained according to their terms and conditions, serviced etc.

I've done a few VT's for various reason's over the years and never had to pay any excess mileage charges. Looking to the future it might be wise to cover yourself by ensuring that you have enough miles in your allowance or to ask to adjust during your term.

ben_m_g

smitchy73 wrote: »

The argument in regards to the excess mileage is one that finance companies will try to charge you for if you do a Voluntary Termination, however, in the articles I've read the law and statute that is the Consumer Credit Act 1974, section 99 but liable to section 100, which basically says that as long as you pay up to the 50% of total amount payable, this includes all interest etc, but also included towards the 50% is deposit or trade in values.

The CCA states along the lines of that as long as 50% has been paid you can return the vehicle without a need to pay any more. This overides the terms and conditions of the lease paperwork. It doesn't say that you wont have to pay anymore with the exception of excess mileage charges, it states 'with no more to pay'.

There is an argument in regards to the liability from wear and tear from the excess mileage but this would be hard to prove, t's and c's usually states if it is in a good state of repair, and maintained according to their terms and conditions, serviced etc.

I've done a few VT's for various reason's over the years and never had to pay any excess mileage charges. Looking to the future it might be wise to cover yourself by ensuring that you have enough miles in your allowance or to ask to adjust during your term.

Many, many thanks for your post, I will review the act you quoted and go back to the dealer to see what they say.

I never intended to go over mileage and I never intended to use this as a way to get out of a bill. I took the car when I was working locally, with very minimal mileage.

Only later I was headhunted for a position with a 20% raise (which I initially turned down due to the distance and commute), I was assured that the car share program was robust and longstanding with several members willing and able to share the travel costs.

The whole thing has fallen apart, the main driver turns up late or not at all, and the remaining members either refusing to drive the extra 2 minutes to pick me up, or make up excuses why they cannot drive.


Although I failed to mention it in my first post, I did discuss payment of going over mileage before agreeing to anything, in fact I was introduced to the idea from a friend who uses this as a on-going way to fund a car for very high mileage, he gets a new car every three years and the garage gets payment every month. There has never been any animosity from the dealer and they are more than happy with this arrangement (He has been going to the same dealer for 5+ years)

At the time the sales guy did squirm when asked, but he did confirm that going over the stated mileage wouldn't incur a cost. Apologies for any confusion

SmellyPetrol

The Car Expert states you don't have to pay mileage charges.

Little downloadable guide for you
here too

But as others had said - maybe there is a clause in your contract mate.
Let us know the outcome.