PCP excess Mileage Charge

Mossfinn

Hoping I can get some advice on behalf of my daughter.

She leased an Audi Q5 on a VW Finance PCP 36months/36000 miles.

Due to changes in circumstances, her mileage increased and she looked to change the car from 24 months onwards but the resale value was always lower than the settlement figure. She looked at returning the vehicle under voluntary termination as allowed after 50% of outstanding balance paid. Despite putting down a decent deposit, the VT wasn’t viable until 34 months.

At 34 months she did this as the value of the car was below the final payment so no point in keeping it. The car was collected by BCA and on the nand over, they pointed a couple of blemishes and we signed the handover with an agreed excess payment of £300.

A few months later VW Finance sent an invoice for £2300 for excess mileage despite the car being voluntarily terminated. We appealed and also made a formal representation to them but they are insistent we pay and yesterday we received a letter from Solicitors demanding payment within 14 days or further action will be taken.

My question follows an article I read in a national paper financial section where they specifically discussed this type of situation and said that under termination, the car companies have no right to demand payment for excess mileage.

Can anyone share any information or experience they have had as to whether this demand is enforceable or not.

Thank you.

wgl2014

How many miles was she over, from the charge it sounds like a lot.

My understanding is that whilst excess miles may not be chargeable on a VT it is still possible for a charge if the car isn't in satisfactory condition (one of these conditions being vastly exceeded mileage and the extra wear this brings with it).

AdrianC

Whether they do or do not has never been adequately legally defined. The letter of the law does not say they definitely do, and there is no legal precedent to say they definitely do not.


So... You have the current situation where they are interpreting the clauses around condition to (fairly, imho) include mileage above that contracted. This has been taken to court as a money-claim, and they have won - aiui, most of the time but not always.

Enforceable? Probably. Does she feel lucky? She can pay it now... or she can play the lottery and perhaps get away with it, perhaps pay the fee plus the costs of chasing it (or lose, don't pay, and get a CCJ).


£2,300 for excess mileage is a lot of miles. How much per mile...?

motorguy

Chances are they will pursue it to county court level where they may or may not win.

Have a read here at post #26

https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/99722-bmw-financial-services-voluntary-termination-excess-mileage/page2