PCP, VT and initial agreement

doctarus

Hi.


I have returned my vehicle a few weeks ago after undergoing VT. The car was financed through RCI finance and they took the at back with a few grumbling but I had ticked all of the books so they had to.


There is some damage to the car and one which goes to the metal so they are claiming this can't be "general wear and tear" and I can see their point , for £48 I will probably not fight it.


The main issue I am fighting with them is that of excess mileage. The handed back mileage was 21000 and the pro-rata figure at return should have been closer to 15K as I signed for 3 years at 6,000 miles per annum(this despite the fact that I have a signed agreement with the dealership for 10K miles per annum - but the finance company won't recognise that).


RCI are stating that as I signed the agreement for 6,000 miles per annum that it is legally enforceable. I don't think it is and have stated this to them based on the Consumer Credit Act 1974 -section 100 (4) that this is reasonable wear and tear.


Can anyone set the record straight and what I need to say to RCI to get this closed in my favour or as I signed for 6K per year, do I owe them the excess mileage?


Help me out please.

neilmcl

You only have one way to fight this, ie, go to court. However, you should be aware that this can, and does, go either way, especially if you're not fully prepared.

Worth having a look here - https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights

DoaM

Are there date differences between the agreement you signed at the dealership and that you signed with RCI? Which one has the later date?

Either way, the agreement with the 10k per annum mileage would form part of your defence should RCI take this to court.

doctarus

Its getting scary when court is mentioned!

motorguy

doctarus wrote: »

Its getting scary when court is mentioned!

Thats what they rely on.

You might win you might not. Thats the problem though...

How did you end up with two signed finance agreements, one with 10K miles PA and another with 6K miles PA?

AdrianC

doctarus wrote: »

Its getting scary when court is mentioned!

They will launch a court claim against you for the money, as with any other debt that somebody says you owe (electricity bill, mobile phone etc).

Because it's <£10k, it's a small claim.
You simply lodge a defence against it (if you don't, they win by default).
The court then hears the case, and decides who's right.
If you lose, you have a month to pay, else a CCJ gets lodged against you, and they can take steps to recover the debt from you.

It's very straightforward and relatively painless.

You seem to be muddying your own waters with two different defences - "It's not enforceable" (good luck, you'll need it) and "But I signed a 10k/yr contract".

So you've got two agreements with different mileages... But which one have you been paying the monthlies for over the last three years...? If for the 10k one, then you may well have a valid defence there (you'd be within that mileage?). If for the 6k one, then... save your breath.

doctarus

The 10K mileage signed form isn't with the finance company but with the dealership that I bought the car from.


Sounds like I should cut my loses and just pay.

AdrianC

doctarus wrote: »

The 10K mileage signed form isn't with the finance company but with the dealership that I bought the car from.

Sounds like a random piece of meaningless paper, then.

So you're about 6k above the contracted mileage. How much per mile?

doctarus

8 p per mile, including the damage -just shy of £500

motorguy

doctarus wrote: »

The 10K mileage signed form isn't with the finance company but with the dealership that I bought the car from.


Sounds like I should cut my loses and just pay.

You could write a letter back to them disputing the mileage charges.

If its a relatively small amount and they're getting pushback they might drop it.

Template here

https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/97804-voluntary-termination-letter-templates

doctarus

Hi, I've been in touch and they are saying that as I signed the original PCP agreement for 6K miles then I have to pay fro the excess mileage.