VW Hire Purchase Agreement - INCORRECT!

motorguy

Thomasnevitt wrote: »

This is a hire purchase agreement, my point being the sales adviser changed the T&C's without my knowledge and rushed the paper work at the point of me picking the car up.

I am planning on the giving the car back at 50% mark, so this in effect isn't the full agreement

You signed it without reading it. The total mileage would have been clearly marked. Therein lies the problem as its now going to be your word against his.

HOWEVER, if you plan on giving the car back at the 50% mark, then the contractual mileage is irrelevant.

You would be exercising your right to voluntary terminate the agreement under the Consumer Credit Act, and as, by that point you have paid 50% of the total agreement cost the finance company can not pursue you for further monies.

Subject to :-

• The car being returned in good condition
• You not unwittingly signing something the finance company sends out which signs that right away
• You having paid 50% of the total contractual agreement amount (this will be clearly marked in the finance document) NOT 50% of the payments.

neilmcl

^^This. The agreed mileage allowance is irrelevant.

Have a read of this: https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp

WellKnownSid

neilmcl wrote: »

^^This. The agreed mileage allowance is irrelevant.

If the agreed mileage was 5,000 and the OP had done 80,000 then that wouldn't necessarily be true, but in the OP's case a few k miles isn't going to make a lot of difference.

=rizla=

neilmcl wrote: »

^^This. The agreed mileage allowance is irrelevant.

Have a read of this: https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp

If a lot of people who know they drive a lot of miles use this loophole and sign up to agreements with very low miles to lower their costs it makes me wonder if they will stop everybody having low mileage in their agreements and as a minimum make everybody on a pcp sign up to 12k or more millage per year.


We do approx. 7k a year, our last pcp (Toyota) had a minimum of 10k per year, after 3 years obviously we were in a situation with a 21k miles car but a MGFV (very pessimistic) of a 30k car with a WBAC valuation giving us ~ £3k 'equity' for the next car.

motorguy

=rizla= wrote: »

If a lot of people who know they drive a lot of miles use this loophole and sign up to agreements with very low miles to lower their costs it makes me wonder if they will stop everybody having low mileage in their agreements and as a minimum make everybody on a pcp sign up to 12k or more millage per year.


We do approx. 7k a year, our last pcp (Toyota) had a minimum of 10k per year, after 3 years obviously we were in a situation with a 21k miles car but a MGFV (very pessimistic) of a 30k car with a WBAC valuation giving us ~ £3k 'equity' for the next car.

Yes, its a real possibility.

The other situation - which is definitely happening - is that manufacturers are promoting "personal leasing" which isnt covered by the Consumer Credit Act and thus you cant Voluntary Terminate.

molerat

I wonder if any of the companies will chance a court case over contractual mileage charges at VT if too many are taking the !!!!. I expect at present they get enough money out of those that do pay up but if that revenue decreases they may have a go.

motorguy

molerat wrote: »

I wonder if any of the companies will chance a court case over contractual mileage charges at VT if too many are taking the !!!!. I expect at present they get enough money out of those that do pay up but if that revenue decreases they may have a go.

They'll neve chance a court case as they know it wont be upheld. The option to VT is a right under the Consumer Credit Act. Its not up for debate.

What they do do is

• Try to get people who are about to do a VT to sign a "voluntary termination pack" document and sign away their right not to have to pay the excess mileage by creating another contract.
• Try to force people to pay it
• Enforce other damages at inflated rates to cover any potential loss on mileage rates

=rizla=

molerat wrote: »

I wonder if any of the companies will chance a court case over contractual mileage charges at VT if too many are taking the !!!!. I expect at present they get enough money out of those that do pay up but if that revenue decreases they may have a go.

It wouldn't surprise me, in a few years time when enough people have gone into a pcp planning on vt'ing to save mileage costs.

neilmcl

=rizla= wrote: »

It wouldn't surprise me, in a few years time when enough people have gone into a pcp planning on vt'ing to save mileage costs.

You say that as if this is some new phenomenon, it's not. Nobody is going to get taken to court, not now or in the future.

motorguy

neilmcl wrote: »

You say that as if this is some new phenomenon, it's not. Nobody is going to get taken to court, not now or in the future.

Exactly

Because they'd lose and they know it