Have I been mis-sold PCP?

MrLee123_2

I purchased my Honda CRV in March 2015. Prior to completing the purchase the salesman filled out a product fact finding form. On this form one of the questions asked is 'What is your typical annual mileage?'. I answered 8k to 10k. I have a copy of the product fact finding document which clearly states 8k to 10k.
I have recently checked the credit agreement as I now have exceeded 18000 miles and it clearly states 'If you choose to return the goods, you should ensure that the mileage travelled by the goods does not exceed 18500 miles within the duration of the (36 month) contract'.
I have approached the dealer to discuss this issue and have been told it should not make a difference providing I return the car and take out a new PCP.
Have I been mis-sold the PCP and if so how should I proceed with the complaint?

[Deleted User]

Compare it to what was on the agreement you signed.

ReadingTim

Depends on what other info you gave - for example the total mileage is irrelevant if you're looking to buy the car at the end of the agreement, or whether you decided to go for a lower mileage agreement to keep the monthly repayments down, and take the hit on the excess miles at the end of the contract term.

That said, at the end of the day you should always check what you're actually signing up to before you sign, rather than taking the salesman's word for it - after all, they would say that wouldn't they?!?

foxy-stoat

I think you have mis-bought the PCP rather that it being mis-sold.

Wait until your 50% way through paying it back and VT the car and take out a PCP that is better suited to your requirements.

Blackbeard_of_Perranporth

MrLee123 wrote: »

I purchased my Honda CRV in March 2015. Prior to completing the purchase the salesman filled out a product fact finding form. On this form one of the questions asked is 'What is your typical annual mileage?'. I answered 8k to 10k. I have a copy of the product fact finding document which clearly states 8k to 10k.
I have recently checked the credit agreement as I now have exceeded 18000 miles and it clearly states 'If you choose to return the goods, you should ensure that the mileage travelled by the goods does not exceed 18500 miles within the duration of the (36 month) contract'.
I have approached the dealer to discuss this issue and have been told it should not make a difference providing I return the car and take out a new PCP.
Have I been mis-sold the PCP and if so how should I proceed with the complaint?

I have highlighted the bits that you took out a plan for 8 to 10k miles a year. You have not been miss sold.

My Car maintenance plan was for 25k a year and I currently do around 18k. I rang them and got a new payment, saving £20 a month. You can do the same, except that your payment could increase.

Or bury your head in the sand and hope it goes away.

Nasqueron

The mileage is an issue if you want to trade the car in, the guaranteed value is based on the mileage you said so if it was over, you pay the difference at a rate per mile.

If you want to keep the car at the end, as for example I do, the mileage is irrelevant

Cornucopia

There are generally 5 options at the end of a PCP. In only 2 of them does the mileage clause in the original contract have any relevance.

1. Hand the car back. Settle any fees due to excess wear or mileage.

2. Trade in the car with the original manufacturer's dealer network. The value will be underwritten if it is lower than the GMFV less fees for excess wear and mileage. If the car is worth more than the GMFV (less fees) then its trade-in value will be its market value less the GMFV.

3. Trade the car anywhere. The value will be its market value less the GMFV required to settle the finance.

4. Sell the car anywhere. The value will be its market value less the GMFV required to settle the finance.

5. Buy the car by paying the GMFV.

Cornucopia

foxy-stoat wrote: »

I think you have mis-bought the PCP rather that it being mis-sold.

Wait until your 50% way through paying it back and VT the car and take out a PCP that is better suited to your requirements.

We don't know the figures for the OP's PCP. Since the VT requires that 50% of the cost of the car will have been paid it may not be the best solution to their problem.

"50% of the way through" tends to make people think (mistakenly) that it means numerically half of the payments, which is not the case.

Username!_2

Thanks for an answer

Oakdene

When I VT'd & returned my Toyota Aygo which had a mileage limit of 8k pa on PCP, it had 36k on the clock after 31 months of a 36 month agreement. They didnt charge me any excess mileage charge.

Nearlyold

Oakdene wrote: »

When I VT'd & returned my Toyota Aygo which had a mileage limit of 8k pa on PCP, it had 36k on the clock after 31 months of a 36 month agreement. They didnt charge me any excess mileage charge.

The regulations on VTs once 50% of the total cost has been paid were introduced way before PCPs with their mileage limits were heard of and do not allow additional charges to be made other than when the return condition is worse than fair wear and tear. Many PCP finance providers will try and charge for additional mileage (and there are cases where FOS have accepted this charge as fair) however I'm not sure if this has ever been tested either way in court. Some PCP finance providers are now including a clause in the contract that states that the agreed mileage forms part of the definition of fair wear and tear - again whether this has been tested in a court I don't know.