VW Hire Purchase Agreement - INCORRECT!

=rizla=

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.

To be honest I've no idea how long its ben going on, but I do know a lot more cars are bought with PCP and there mileage restrictions, and the posts in various forums about VT'ing has risen a fair bit recently, so to my mind the industry will have to take some action, be that having a minimum mileage on contracts of 12k PA or so, lowering MGFV, or taking somebody to court, yes it'll cost £1000's BUT stand to gain more over the years if they do win.


Just to clarify, i'm not talking about the ability to VT, just the mileage penalty for going over what you've agreed. I've not looked into it, but if you VT and hand back a damaged car i'm guessing you have to pay for the repairs?, surely they could argue that having 100k on the clock isn't fair wear and tear on a car that should have 10k on the clock.

neilmcl

=rizla= wrote: »

I've not looked into it, but if you VT and hand back a damaged car i'm guessing you have to pay for the repairs?, surely they could argue that having 100k on the clock isn't fair wear and tear on a car that should have 10k on the clock.

And that is the very crux of the issue. As explained in that page I linked, you're only contractually obliged to take reasonable care of the vehicle during it's contract term so if you hand the car back in good condition regardless whether it's done 10K or 100K you haven't actually breached the terms of your contract. The fact that the car maybe worth less to the finance company because of the higher mileage is largely irrelevant.

motorguy

=rizla= wrote: »

To be honest I've no idea how long its ben going on, but I do know a lot more cars are bought with PCP and there mileage restrictions, and the posts in various forums about VT'ing has risen a fair bit recently, so to my mind the industry will have to take some action, be that having a minimum mileage on contracts of 12k PA or so, lowering MGFV, or taking somebody to court, yes it'll cost £1000's BUT stand to gain more over the years if they do win.

I think Ford first introduced the "Options" plan back in the 1980s. I vaguely remember a friend of mine getting a new Fiesta mk2 on the Options scheme and it seems outrageous at the time that you werent paying off the car.

They cant enforce any mileage restrictions in the contract if you VT because a VT TERMINATES the contract, those it no longer exists. You can VT at any point, however the finance company can only pursue you for no more than 50% of the total contract value. Hence once you've paid 50% or more you can effectively walk away.

They wont take it to court, because they CANT win it.

An easy way to resolve the problem for the finance companies would be as you say to set a minimum level of 12K miles. However to me, they're all dancing the same jig, so if one decides to change then that one simply loses out to the others in terms of future business.

I think VT'ing of cars with over contractual miles is a thorn in their side - they probably get a decent percentage of people who simply pay up when billed for the miles. The small percentage remaining might just be acceptable to them.

I think they are moving to a leasing or "personal leasing" model anyway, whereby you never own the car, just rent it. Its how it is in the states and whilst there are advantages for the customer too, the main advantage is it removes the terms of the CCA that causes them pain.

=rizla= wrote: »

Just to clarify, i'm not talking about the ability to VT, just the mileage penalty for going over what you've agreed. I've not looked into it, but if you VT and hand back a damaged car i'm guessing you have to pay for the repairs?, surely they could argue that having 100k on the clock isn't fair wear and tear on a car that should have 10k on the clock.

Yes, fair wear and tear includes any damage and some finances are very strict on this - however there are documented and accepted guidelines to follow.

Yes, you could argue fair wear and tear for grossly excessive mileage. And they probably do.

=rizla=

motorguy wrote: »

They cant enforce any mileage restrictions in the contract if you VT because a VT TERMINATES the contract, those it no longer exists. You can VT at any point, however the finance company can only pursue you for no more than 50% of the total contract value. Hence once you've paid 50% or more you can effectively walk away.

Aha that makes sense now, thanks.