Citroen PCP - VT questions

fatmcgav

Morning all,

I currently have a Citroen DS3 on a 3 year PCP, which is at the 30 month mark, and about 10k miles over the agreed mileage.

As the car is due to replaced at the end of this year, I've ordered and am due to pick up a new car from Mini on the 1st September.
I haven't traded the DS3 in, as it's currently at about £1k negative equity due to some poor advice around mileage vs value when taking out the PCP agreement.

Having phoned Citroen Financial Services (CFS) to find out what my options were, they straight away said that I would be Voluntary Terminating (VT) the finance agreement, and they would send out some relevant forms to sign and return. They also confirmed that I'd passed the 50% repayment mark, so there was no additional liability.

Fine I thought, was prepared for that. Having received the paperwork, I've got some questions around the wording of some sections.
My understanding of VT on cars is that CFS can't legally try and claim for the excess mileage. However there are various sections that intimate that they will bill me for any excess mileage not deemed 'fair wear and tear'.

Specifically, on the form that they want me to sign and return, it has the following paragraph:

I confirm that I'd like to go ahead and end my agreement and return my vehicle in line with my rights under the Consumer Credit Act 1974. I have read the information in your letter enclosing a liability quotation, and understand I'm liable for the amount specified and any arrears. the enclosed cheque represents the total of my liability plus any arrears. I also understand that I may have to pay an additional sum in respect of any damage to the vehicle or any excess mileage charge. I will contacted separately by your agent, RMS receivables regarding this.

Now I don't want to just blindly sign this form and return it if I'm then going to land myself with a large bill for the excess mileage.

Is it viable for me to cross out the excess mileage comment, sign and return.

Or should I just send a generic VT letter with no reference to excess mileage etc?

Any advice appreciated.

Regards
Gavin

Mr_Mink

I think you're probably mistaken on CFS being unable to bill you for the excess mileage if you decide to VT it. However, even if that is the case, simply crossing out the line you don't like in there statement won't do the job you're after.

Honestly, I'd advise putting together the pennies to pay that excess mileage charge as I can't see how you'll not be paying it. I'd also be ensuring that the car is completely ship-shape as they may be tempted to send one of their pickier inspectors to check the fair wear and tear.

motorguy

Mr_Mink wrote: »

I think you're probably mistaken on CFS being unable to bill you for the excess mileage if you decide to VT it. However, even if that is the case, simply crossing out the line you don't like in there statement won't do the job you're after.

Honestly, I'd advise putting together the pennies to pay that excess mileage charge as I can't see how you'll not be paying it. I'd also be ensuring that the car is completely ship-shape as they may be tempted to send one of their pickier inspectors to check the fair wear and tear.

They cant legally bill you for the excess miles - you're "terminating" the finance agreement, not seeing it through to its natural end.

This is a right you have under the consumer credit act.

fatmcgav

motorguy wrote: »

They cant legally bill you for the excess miles - you're "terminating" the finance agreement, not seeing it through to its natural end.

This is a right you have under the consumer credit act.

Motorguy

Cheers for the response.

How would you recommend I handle the form?

Cheers
Gavin

motorguy

fatmcgav wrote: »

Motorguy

Cheers for the response.

How would you recommend I handle the form?

Cheers
Gavin

As far as i know you are under no obligation to sign and return "any" form from them. I'd check out advised wording of a letter to them for a VT and send it back.

I wouldnt be signing anything that said i'd accept a mileage charge.

EDIT: just found this.

http://www.legalbeagles.info/forums/showthread.php?34548-Voluntary-Termination-of-a-Hire-purchase-or-conditional-loan-under-the-CCA-1974

They safe use one of their templates and dont sign their form

k3lvc

Interesting post - if I'm reading right I could effectively PCP a car on 6k miles pa and do 60k pa with a get out to hand back at 50% payment

Struggling to believe this

molerat

(4)If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.

Is what the companies are using to add a mileage / damage etc charges and I believe this point has not yet been argued in court. Is exceeding the contracted mileage contravening an obligation ?

motorguy

k3lvc wrote: »

Interesting post - if I'm reading right I could effectively PCP a car on 6k miles pa and do 60k pa with a get out to hand back at 50% payment

Struggling to believe this

I would say they would be able to get you under "fair wear and tear" if you handed back an extremely tired 180K mile car.

motorguy

molerat wrote: »

Is what the companies are using to add a mileage / damage etc charges and I believe this point has not yet been argued in court. Is exceeding the contracted mileage contravening an obligation ?

Because finance companies wont let it get to court because they know they cant win it.

You have rights under the consumer credit act to allow you to terminate a credit agreement with nothing further to pay once you have paid 50% of the total agreement amount.

molerat

motorguy wrote: »

Because finance companies wont let it get to court because they know they cant win it.

You have rights under the consumer credit act to allow you to terminate a credit agreement with nothing further to pay once you have paid 50% of the total agreement amount.

Not entirely true, below is an extract from s100

(4)If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.

which is why you cannot hand back a crushed cube with nothing further to pay.