VW contract hire problem - Early termination

spsdjone

Hello
I took out a 2 year contract hire agreement on a skoda octavia.
agreed mileage of 16k (8kpa)
Dealer offer was £2k up front, with 24 rentals of £180
I decided to add another £2k up front and this dropped rentals to £100
Looking to return the car after 13 months as i dont need 2 cars and have received a settlement figure of 55% for the remaining payments, which I understand is the VW standard for vehicles in the last 12 months.
I am also up to 11.5k miles and they want to charge me a pro rata excess mileage charge over the first year figure of 8k.

My issue here is twofold:
- Ive argued that my overall contract was for 16k miles and when you add up the settlement and excess mileage charges, this comes to just £80 short of the full 2 year lease charge, but they are getting a vehicle back with 4.5k under the agreed miles and nearly 12 months of extra residual value

- Additionally, the dealer offer of £2k up front has disadvantaged me in that the "discount" of 45% that they are calculating is based on the monthly payment amount and not on the total amount paid to date, which means that if I had paid £2k up front instead of the £4k, i would be paying them £560 LESS at month 13. Ive argued that this was never explained when i gave them the extra money and although the idiot on the phone tried to explain this as me getting the "benefit" of the reduced monthly charges, I dont feel this is at all TCF.

Any advice here is gratefully received

thank you

Mercdriver

spsdjone wrote: »

Hello
I took out a 2 year contract hire agreement on a skoda octavia.
agreed mileage of 16k (8kpa)
Dealer offer was £2k up front, with 24 rentals of £180
I decided to add another £2k up front and this dropped rentals to £100
Looking to return the car after 13 months as i dont need 2 cars and have received a settlement figure of 55% for the remaining payments, which I understand is the VW standard for vehicles in the last 12 months.
I am also up to 11.5k miles and they want to charge me a pro rata excess mileage charge over the first year figure of 8k.

My issue here is twofold:
- Ive argued that my overall contract was for 16k miles and when you add up the settlement and excess mileage charges, this comes to just £80 short of the full 2 year lease charge, but they are getting a vehicle back with 4.5k under the agreed miles and nearly 12 months of extra residual value

- Additionally, the dealer offer of £2k up front has disadvantaged me in that the "discount" of 45% that they are calculating is based on the monthly payment amount and not on the total amount paid to date, which means that if I had paid £2k up front instead of the £4k, i would be paying them £560 LESS at month 13. Ive argued that this was never explained when i gave them the extra money and although the idiot on the phone tried to explain this as me getting the "benefit" of the reduced monthly charges, I dont feel this is at all TCF.

Any advice here is gratefully received

thank you

These contracts aren't set by distance, though. They are set by time. I don't think what you are asking for is reasonable. The deposit you paid and contracted to brought down your payments over the full term of the contract. You could have asked before signing what the consequences might be for early termination of course...

spsdjone

but its not a distance issue.
they are getting the vehicle back early
they are getting the vehicle back with less miles
they are getting the vehicle back with virtually the full 2 years worth of rental costs
ive said i could just let it sit outside the house for 12 months, but what would be the point in that!

Mercdriver

spsdjone wrote: »

but its not a distance issue.
they are getting the vehicle back early
they are getting the vehicle back with less miles
they are getting the vehicle back with virtually the full 2 years worth of rental costs
ive said i could just let it sit outside the house for 12 months, but what would be the point in that!

But you've contracted yourself for two years, not for one. A one year lease would likely have a higher monthly fee to begin with.