PCP VT with excess Millage

14pricey14

Hi, I have had a PCP deal with VW for almost 3 years and am nearly at the 50% payment stage where I can VT my deal.

However, while taking out my deal, the salesman said that the mileage doesn't matter and isnt taking into account even if I hand the car back or swap for a new car. Even though I have informed him that I do a daily commute which is 80 miles, he advised me to take a 8k miles a year deal. (Yes I'm one of those naive idiots who fell for the salesman's BS.) I have obviously gone over the 8K a year target.
I have been asking around about my options as I don't want the car now and if I keep it till the end of the 4 year contract the car will be worthless. I have obviously gone over the 8k a year mileage by about 20k in total, will I have to pay the 8p per mile if I VT my deal? What do the company class as wear and tear?

Also will this have any effect on my credit report?

Can anyone give me any advice on what is the best way of approaching this with the dealership.

Thanks

David

dresdendave

14pricey14 wrote: »

Hi, I have had a PCP deal with VW for almost 3 years and am nearly at the 50% payment stage where I can VT my deal.

However, while taking out my deal, the salesman said that the mileage doesn't matter and isnt taking into account even if I hand the car back or swap for a new car. Even though I have informed him that I do a daily commute which is 80 miles, he advised me to take a 8k miles a year deal. (Yes I'm one of those naive idiots who fell for the salesman's BS.) I have obviously gone over the 8K a year target.
I have been asking around about my options as I don't want the car now and if I keep it till the end of the 4 year contract the car will be worthless. I have obviously gone over the 8k a year mileage by about 20k in total, will I have to pay the 8p per mile if I VT my deal? What do the company class as wear and tear?

Also will this have any effect on my credit report?

Can anyone give me any advice on what is the best way of approaching this with the dealership.

Thanks

David

I'm afraid I can't answer the part relating to the PCP terms but just wondered why a 4 year old VW would be worthless?

Nearlyold

In terms of a VT it won't affect your credit report however it can mean car lenders will be reluctant to offer you an HP based finance in the future - though there are plenty of people who have VT'd and have been offered HP based finance again.


Have you checked the VT figure that will be quoted in the finance docs to ensure that you will have reached the 50% of the Total Amount Payable.

The fair wear and tear guidelines are available at the bottom of the page on this link. https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/how_agreements_work/solutions_pcp.html

sccooter

A VT is simply exercises your right relevant to the part of the finance agreement that lawfully allows you to do so. Does not affect negativley your credit score. Shows as VT not VS(surrender). The excess mileage does not matter. The whole point of VT is to write of the negative equity and excess miles you would otherwise get landed with. You should be 2-3 better off for it (dependant on value of car and terms etc). Most dealers suggest VT nowadays. They will even let you dump your old car with them for the finance company to come and collect (assuming VW, otherwise they might insist you drive it to them) which is great. Only rules is engine management light must NOT be on. And no major damage other than normal expected paint chips etc. Take lots of high res pics for your peace of mind.