Finance agreement for a car

BoGoF

And why have you calculated your figure using the full 60,000 miles. This would only entitle you to 58,333 (35/36ths of 60,000) miles and if there was more than a month to run even less.

fiisch

This article really helped me terminate a PCP on a Skoda Octavia vRS - https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

I was a long way over (15,000 miles+) but by following the steps in the article eventually Skoda went away and left me alone. The finance companies don't like it, but they have never legally challenged someone refusing to pay excess mileage charge, and there is no penalty to your credit history.

Kpros

Hi all, thank you for your help it means a lot.

Fiisch this is remarkable. I have just read all of it including the comments. This is the kind of advice I was looking for. It would appear that I do not need to pay this amount and I have been more than fair thus far with both my communication and offer. I am going to ignore them now. Thank you so much for this, this is a lifesaver as I am really struggling financially right now and can do without this bill.

Kpros

My biggest fear was my credit rating as I have a perfect rating without adversities. I always try and be fair and I have done the same thing here but they have been really poor and ignored me. If they had listened they would have had the majority on payment which I deem to be the correct amount.

BoGoF

What you deem to be the correct payment is irrelevant and based on your calculation is wrong.

And it's not correct to say that the finance companies have never taken legal action. I believe from other posts on MSE that the FOS agree with the finance companies and the courts in the few that have went that far have went both ways.

fiisch

No problem. The option of early termination is intended to help people who enter financial hardship. Using VT in this way is perhaps not using it as intended, but there is nothing currently to stop people from doing this.

I had serious excess mileage on a £30,000 car, so the charges were well into four figures, but after a few half-hearted attempts, Skoda gave up after a few months. I've heard nothing since (18 months on), and my credit history remains intact. If Peugeot do get heavy-handed, there are some useful template letters on the web that you can use, but I suspect it won't come to that - especially with relatively meagre excess mileage charges involved.

Kpros

Hi Bogof- I really appreciate your help but there is no need to jump on the attack. My calculations are not wrong. I came here for support and guidance. I am not trying to avoid paying and I've made it very clear that I had every intention of paying the full amount and have done my utmost to settle this balance. I just disputed the final figure and that's the reason for this post, to see where I stand

Fiisch - that is a heck of a lot of excess mileage! Your story and experience is very reassuring for me, especially as my mileage is only a very small percentage of yours. I have had a further read and I am going to take your advice. I would have loathed having to 'chase them' just to make a payment to them; that seems ridiculous to me! I don't feel that I should have to prod them with a stick and when I initially called the gentleman was really rude to me and refused to accept my offer or even consider my rationale and they have since ignored my letter and we are 5 weeks on from my letter, 3 months on from the first communication. Paying this would leave me in a difficult financial position. You're a star Fiisch, thank you.

BoGoF

Well you haven't answered any of the questions asked and basing your calculations on the full contract mileage is simply wrong.

Here is a link to the thread I mentioned earlier

https://forums.moneysavingexpert.com/discussion/5802241/vt-excess-mileage-some-you-some-you-dont

normanna

Kypros

I don't see any malice in what BoGoF is saying. You are however swayed by Fiish experience that may well be a one-off. They have taken a risk and not paid what they owed with seemingly no consequences to their credit history (so far). Justice may well come back to haunt them.

If you get confirmation that the charges are correct, then as you signed up to the agreement, you should pay as that is fair and you mention you are keen on fairness.

Kpros

Hi Normana,

I too do not see any malice either, it just felt like I was being lectured as opposed to being supported. I know that there are many variables and ultimately every incident is different, Looking at my individual agreement the upshot is that I do not want to cower down to this finance company who in my opinion are acting very unprofessionally with their lack of communication. I don't think it is fair that they just send me a bill and expect me to settle it, especially if I, the consumer, request an explanation of the charges or dispute it. I will await a response however I doubt very much that I will get one.