Voluntary Termination of VW Finance - HELP!?

dominicruk

Hi,

I'm looking for some advice on a current finance agreement I have with Volkswagen for a VW Polo on PCP.

Fortunately, I have been offered a new career path with my current employer and the package offered includes a company car. Unfortunately, I have a car with VW Finance which is still under contract, which, considering my situation has changed I'd now like to walk away from.

Having called VW Finance this morning they have informed me that in order to walk away I need to have hit 50% of my payments which equates to £1,764.60 and I don't actually reach that until another 8 months time.

I'm not so concerned about that as I guess I can either pay up or SWORN the car off the road and continue to pay it (begrudgingly). What I'm more concerned about is they have my annual mileage down as 10,000 at the time of taking the car which I know is rubbish because travelling to and from work annually equates to 8,000 miles so I would never have agreed to it.

What I want to know is can car finance companies force you to pay the excess mileage? I'm going to visit the dealership tomorrow to talk through it all but would like to have some facts, if any, of my rights as a consumer and what my options are.

Thanks in advance,
Dom

Oakdene

If you VT the annual mileage is disregarded

Herzlos

What's the car worth and whats the cost to clear the finance?

neilmcl

dominicruk wrote: »

What I'm more concerned about is they have my annual mileage down as 10,000 at the time of taking the car which I know is rubbish because travelling to and from work annually equates to 8,000 miles so I would never have agreed to it.

I love it when members come out with statements like this. If it's in the agreement that YOU signed then of course you agreed to it, or are you in the habit of not reading what you sign!

Technically (and legally) there is nothing that requires you to pay for excess mileage if you VT however that may not stop the finance co. from chasing you regardless.

dominicruk

Is it written anywhere in the contract or by law that if I VT then I am not liable for excess mileage?

Do different finance companies have different laws?

dominicruk

neilmcl wrote: »

I love it when members come out with statements like this. If it's in the agreement that YOU signed then of course you agreed to it, or are you in the habit of not reading what you sign!

Technically (and legally) there is nothing that requires you to pay for excess mileage if you VT however that may not stop the finance co. from chasing you regardless.

Sorry, what I should have said is to the best of my knowledge I don't recall agreeing to 10k miles but I will check on my paperwork.

Is there a law you can point me towards which shows (legally) that I am not liable for the excess milage?

neilmcl

It's governed by the Consumer Credit Act and whilst it doesn't explicitly state that excess mileage can't be charged what it does state is that your only liable for 50% of the total agreed payment, they cannot charge you anything other than this so long as you've followed your legal obligations under the Act.

I suggest you have a read of the following: http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

caprikid1

neilmcl wrote: »

It's governed by the Consumer Credit Act and whilst it doesn't explicitly state that excess mileage can't be charged what it does state is that your only liable for 50% of the total agreed payment, they cannot charge you anything other than this so long as you've followed your legal obligations under the Act.

I suggest you have a read of the following: http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

But surely TOTAL Agreed payable includes excess mileage charges as he agreed to pay them + damage ??

neilmcl

caprikid1 wrote: »

But surely TOTAL Agreed payable includes excess mileage charges as he agreed to pay them + damage ??

It doesn't!

Oakdene

caprikid1 wrote: »

But surely TOTAL Agreed payable includes excess mileage charges as he agreed to pay them + damage ??

No it doesnt...

dominicruk

neilmcl wrote: »

It's governed by the Consumer Credit Act and whilst it doesn't explicitly state that excess mileage can't be charged what it does state is that your only liable for 50% of the total agreed payment, they cannot charge you anything other than this so long as you've followed your legal obligations under the Act.

I suggest you have a read of the following:

Thank you for providing me with this link. I've noticed under section 2 it states "you can terminate the contract at any time and you do not need to have paid half of the total amount payable"

Is that correct?