Voluntary Termination With BMW

AdrianC

That makes a lot more sense. Otherwise, it'd be carte blanche to take out a low-mileage, low-monthly-cost deal, then to VT it.

So the simple answer is that, unless and until somebody takes it to court and it's ruled that excess mileage charges are definitely not on, the OP is going to be invoiced, and is going to be chased up for that money. If the finance company take it to court, the OP may or may not win. The finance company have the FOS on their side.

molerat

Double_V wrote: »

Does the mileage count applies when you change the car after 2 /3 years on PCP ?
Or only when you hand the car back ?
I am on PCP, and I have 10000miles per year. And want to change the car after 2 years.

Generally the T&Cs give an annual mileage allowance so yes, if you have exceeded 20K at the 2 year point you will be charged an excess.

Double_V

molerat wrote: »

Generally the T&Cs give an annual mileage allowance so yes, if you have exceeded 20K at the 2 year point you will be charged an excess.

Even if you change the car and get into a new PCP ?

I thought mileage only comes into account if you hand the car back.

motorguy

AdrianC wrote: »

That makes a lot more sense. Otherwise, it'd be carte blanche to take out a low-mileage, low-monthly-cost deal, then to VT it.

So the simple answer is that, unless and until somebody takes it to court and it's ruled that excess mileage charges are definitely not on, the OP is going to be invoiced, and is going to be chased up for that money. If the finance company take it to court, the OP may or may not win. The finance company have the FOS on their side.

They wont - and havent - taken it to court in nigh on 30 years of PCP deals as they know they cant win. Imagine the backlash if they went and lost and had to pay back everyone who they did manage to scam a payment out of that they shouldnt have when they VT'd.

It speaks volumes that they havent taken anyone as far as court, even though they often threaten to

motorguy

AdrianC wrote: »

That makes a lot more sense. Otherwise, it'd be carte blanche to take out a low-mileage, low-monthly-cost deal, then to VT it.

Dont forget that a lot of people simply do more miles and either hand it back at the end of term and pay the mileage charge, or trade it in, or buy the car at the end of the term.

Relatively few people VT, and of those only a small amount do hugely excessive miles.

We will - and in fact are - seeing a move to personal leasing instead of PCP deals, precisely to circumvent people doing a VT and - god forbid - the finance company not making a fortune off them

molerat

Double_V wrote: »

Even if you change the car and get into a new PCP ?

I thought mileage only comes into account if you hand the car back.

But you are handing the car back - the only time excess mileage would not be applied was if you paid the finance off and kept the car.

motorguy

molerat wrote: »

But you are handing the car back - the only time excess mileage would not be applied was if you paid the finance off and kept the car.

OR traded the car in

Shammy67

Just got same note as first poster. Called Bmw and they held firm that all excess mileage charges are payable as per contract even when vt'd. My mikes are over because i was convinced by the salesman to keep them at 8k/yr because "it wont effect you at trade in time, most new deals are struck before the 3 years are up". My circumstances have now changed and i had to vt. Im just wondering what K Fergy actually did in the end?

Shammy67

In addition they have sent me a VT form and ask me to sign it. On the form it says i would accept the excess mileage charge. As i have already terminated the agreement i wont be signing this form.

K_Fergy

Hi Shammy67,

I sent my complaint to the FOS and got a similar response to what you got basically siding with BMW, which I didn't accept. I contacted the FOS and they informed me that that they would contact BMW to tell them that I wasn't accepting the FOS's decision. Just before the FOS's decision was sent to me by post, I got an invoice from BMW stating that I still owed them for excess mileage charges, I called them to say it was still with the FOS and that I wouldn't be paying it as I was waiting a decision, I've not heard from them again and that was a few weeks ago now. One thing I never got was a VT form telling me to accept excess mileage that I had to sign, I definitely wouldn't of signed it that's for sure. I remember when I purchased the car the salesman saying something very similar to me, "that the 8K per year allowance doesn't really matter when it come to trading it in" I was also advised to buy gap insurance and tyre insurance due to the car having run flats I fell for that as well. It sounds like we have very similar cases as my circumstances had changed financially hence why I VT'd my agreement.

I will wait and see what happens, and would be interested to know how you get on too.

Regards K_Fergy