Voluntary Termination on PCP Car Help/Advice

Nobbie1967

TheMoonandBack wrote: »

The right thing to do appears to me that you pay the £56, you’ve done the miles after all.

This is a money saving site, and paying money you don't owe is hardly money saving. Under the terms of the VT you must return the car in reasonable condition. Being a few thousand over the pro rata mileage is not unreasonable. The finance company are not going to take this to court over £56 as they could be pretty sure of losing apart from anything else.

motorguy

TheMoonandBack wrote: »

The right thing to do appears to me that you pay the £56, you’ve done the miles after all.

Then you need to read up on what a Voluntary Termination means.

System

Well this VT just over a month before the agreement was due to end is going to end up costing the OP a few quid.

OP I hope you're not intending getting another car on PCP or PCH any time soon if you VT it. One thing you appear not to have found in your quest to avoid a few quid on excess mileage charges is that once you've VT'd a car it can make it difficult to get another on PCP or PCH. Somehow give you seem to be doing your damndest to avoid what is a pittance I doubt you have the funds to actually buy a car so would be relying on another PCP deal.

Best of luck.

motorguy

Tarambor wrote: »

Well this VT just over a month before the agreement was due to end is going to end up costing the OP a few quid.

OP I hope you're not intending getting another car on PCP or PCH any time soon if you VT it. One thing you appear not to have found in your quest to avoid a few quid on excess mileage charges is that once you've VT'd a car it can make it difficult to get another on PCP or PCH. Somehow give you seem to be doing your damndest to avoid what is a pittance I doubt you have the funds to actually buy a car so would be relying on another PCP deal.

Best of luck.

Theres no issue getting finance again if you VT. It wont make it difficult.

neilmcl

Tarambor wrote: »

Well this VT just over a month before the agreement was due to end is going to end up costing the OP a few quid.

OP I hope you're not intending getting another car on PCP or PCH any time soon if you VT it. One thing you appear not to have found in your quest to avoid a few quid on excess mileage charges is that once you've VT'd a car it can make it difficult to get another on PCP or PCH. Somehow give you seem to be doing your damndest to avoid what is a pittance I doubt you have the funds to actually buy a car so would be relying on another PCP deal.
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Best of luck.

Sorry but the above is absolute codswallop. A marker may be put on your credit history but it will have no effect on your credit score and wont prevent you getting finance in the future. Stop the scaremongering!

MataNui

As far as the FCA are concerned the excess mileage charges do apply. Not aware of any case that has gone to court but i would imagine that they would rule similarly. I can see this going to court at some point (though not in your case). At the moment it appears to be almost a cheat that you can get a PCP deal and specify 5k miles to get a really cheap payment (as the miles forms a huge part of the calculation for the cars residual value at the end of the deal) then do 20k per year and VT a month before getting that huge bill.

wgl2014

MataNui wrote: »

As far as the FCA are concerned the excess mileage charges do apply. Not aware of any case that has gone to court but i would imagine that they would rule similarly. I can see this going to court at some point (though not in your case). At the moment it appears to be almost a cheat that you can get a PCP deal and specify 5k miles to get a really cheap payment (as the miles forms a huge part of the calculation for the cars residual value at the end of the deal) then do 20k per year and VT a month before getting that huge bill.

Whilst excess mileage charges may not be payable would there be an argument that by putting an extra 45k miles on the car it has not been returned in reasonable condition? I don't think this argument would stand for a negligible excess but maybe for a big difference.

Nobbie1967

wgl2014 wrote: »

Whilst excess mileage charges may not be payable would there be an argument that by putting an extra 45k miles on the car it has not been returned in reasonable condition? I don't think this argument would stand for a negligible excess but maybe for a big difference.

I think that is the arguement that is yet to be tested in a court case that could set a precedent in case law. I suspect the finance companies are reluctant to have a final judgement as 'reasonable condition' is a very vague term when you look at mileage. I've seen cars on 80k which still drove and looked like new. You would be hard put to say it wasn't in reasonable condition.

Better for them to leave it without setting a precedent and just bully people who have gone marginally over the agreement. Doubt they give a refund if you do less than expected😉

TheMoonandBack

Nobbie1967 wrote: »

This is a money saving site, and paying money you don't owe is hardly money saving. Under the terms of the VT you must return the car in reasonable condition. Being a few thousand over the pro rata mileage is not unreasonable. The finance company are not going to take this to court over £56 as they could be pretty sure of losing apart from anything else.

motorguy wrote: »

Then you need to read up on what a Voluntary Termination means.

I understand this is a money saving site, and understand what a Voluntary Termination is.
I merely express my personal opinion that I believe the morally right thing to do is pay the £56 excess mileage. Trying to avoid it is hiding behind small print which we on this site continually criticize banks, finance companies, credit card companies etc for doing

BlueCan2323

TheMoonandBack wrote: »

I understand this is a money saving site, and understand what a Voluntary Termination is.
I merely express my personal opinion that I believe the morally right thing to do is pay the £56 excess mileage. Trying to avoid it is hiding behind small print which we on this site continually criticize banks, finance companies, credit card companies etc for doing

I don't see how VT a vehicle which I'm entitled to do means morally I should give up my rights and pay them the additional mileage costs. I'm actually moving to another country for 6 months and can't actually afford the £56 which is what I thought VT was for, I have paid 50%, car is in perfect condition and never missed a payment.

I will have to pay them the £56 as I don't have the time or money to take it any further before I leave the country. Thank you for all the help guys, but looks like it will be a long battle for time I don't have.