Finance agreement for a car

BoGoF

Supported in what exactly?

There have been more than me that have explained that you are not entitled to the full mileage if you terminate early, a fact you have not even commented on, nor the VAT question.

If you were correct in your calculations then yes you would get support but based on the limited info you have provided you are wrong.

Kpros

Hi Bogof,

I'm not purposely being vague I'm just unsure what else I can tell you?

I had the vehicle over 36 months with a total mileage allowance of 60,000. I was sold the car by Vospers who ensured me that I would only get charged for mileage above this. I exceeded this by 4,866 miles and worked out that, based on this figure, I would have to pay £340.62 (maths is not my strong point but 4,866 x 0.07p is definitely £340.62. I VT'ed the agreement towards the end of February as I was not using the vehicle due to not being able to afford any additional mileage. The inspection was done and the report was sent back to me on 20th March 2018 after citing no additional costs, only excess mileage at £522.61. I accept that I ended the agreement a month early but my understanding of this was that once I end it, I stop paying and I simply cover any excess mileage or damages so working on that principle I had saved the £340.62 and put it aside ready to settle this.

As I said, I called them the same day that I received this letter and they were less than helpful. Very rude in fact. Refused to put me through to the manager at that time and promised me a call back either later that or the next day but I heard nothing other than the bog-standard letter chasing the debt on 23rd May, so sent them a letter on Friday 25th May 2018 explaining everything to them. nearly 5 weeks later they have still not contacted me.

If you want further details then I can provide them but that's basically it.

My initial stance will be to await correspondence from them. Forgetting everything else I am convinced that they would not be able to put an adversity on my credit history before responding to my complaint. In fact, my research last night tells me that this would be illegal.

BoGoF

The 60,000 miles is pro-ratad for early termination. That is the point we have been trying to make. So to work out the pro-ratad mileage we need to know the date the contract started and the date of termination.

DrEskimo

Kpros wrote: »

Hi Bogof,

I'm not purposely being vague I'm just unsure what else I can tell you?

I had the vehicle over 36 months with a total mileage allowance of 60,000. I was sold the car by Vospers who ensured me that I would only get charged for mileage above this. I exceeded this by 4,866 miles and worked out that, based on this figure, I would have to pay £340.62 (maths is not my strong point but 4,866 x 0.07p is definitely £340.62. I VT'ed the agreement towards the end of February as I was not using the vehicle due to not being able to afford any additional mileage. The inspection was done and the report was sent back to me on 20th March 2018 after citing no additional costs, only excess mileage at £522.61. I accept that I ended the agreement a month early but my understanding of this was that once I end it, I stop paying and I simply cover any excess mileage or damages so working on that principle I had saved the £340.62 and put it aside ready to settle this.

As I said, I called them the same day that I received this letter and they were less than helpful. Very rude in fact. Refused to put me through to the manager at that time and promised me a call back either later that or the next day but I heard nothing other than the bog-standard letter chasing the debt on 23rd May, so sent them a letter on Friday 25th May 2018 explaining everything to them. nearly 5 weeks later they have still not contacted me.

If you want further details then I can provide them but that's basically it.

My initial stance will be to await correspondence from them. Forgetting everything else I am convinced that they would not be able to put an adversity on my credit history before responding to my complaint. In fact, my research last night tells me that this would be illegal.

When you say you are 4,866 miles over, do you mean your mileage is 64,866?

As BoGoF keeps trying to tell you, because you have given the car back early, your mileage limit is not 60,000, but what ever the pro-rata amount is based on how long you've had the agreement.

Just for illustration, if you've given the car back exactly 1 month early, then your limit for those 35 months are (60,000/36*35 58,333. So if your mileage is 64,866, then you are not 4,866 miles over, you are 6,533 miles over the pro-rata limit.

At £0.07, this would be a excess mileage charge of £457.31. And as BoGoF has also explained, the 7p may also include VAT, so 457.31*1.2 = £548.77. Given what you've said, this is pretty close to the figure they have quoted you of £522.61, so my guess is that's where the figure comes from.

This is why the charge is higher than your calculation, because you're not taking into account your pro-rata mileage limit given that you have handed it back earlier, and it may include VAT on top.

I agree though, the company could have easily just given you a breakdown of this cost and communicated better, but on the face of it, the charge looks right based on the information you've given.

Hope that clears it up for you

Kpros

Thank you for clearing this up eskimo, I now understand why the figure may be more.

Taking everything in to consideration I am going to leave things as they are and wait to see what their next move is. They have not covered themselves in glory at all and I won't be chasing them to clear this bill. They have shown me no respect and for these reasons I will not be going out of my way to line their bank account, especially when I am in the financial predicament that I am currently in.

Thanks everybody for your support and input