Voluntary Termination Advice Please

DD1A

I called the finance line today and they said as of today there is around £2k fall over or something payment outstanding if done today.
Or 5 monthly payments remaining until VT point.
They stressed there is a 7.2p per mile on the excess mileage which I'm clearly over already was 28k for 48 months but currently at month 36 and clock reads over 30k.

What would be the best approach for this,
Do I pay what's outstanding submit letter saying come get it as it untaxed and uninsured...
Or carry on for a few more months until VT has reached, submit the letter and do as described as above.
I'm guessing I'm paying less If paid today due to interest, but it's the mileage part I want to avoid paying ideally as it's quite a lot as I've read on other pages you don't have to pay this..?
They also emailed me a VT pack which they said I need to fill out guessing this is to cover their side to prevent me from not paying the fees and charges. I'm guessing not to use this pack and use a cheeky template online which I have already sourced.

Also maintainance, the cars has passed 3 years and they are pesteringe to pay for the brake fluid to be changed.
A fixed service was done 10k ago and is not due for another 9k but they sent me an email saying they believe it's up for service again...
The warranty is also up in 2 days time (they only reminded me 2 days ago)
Also there was a few warranty issues they never ever fixed even though it was reported years ago and they've had it on a few occasions but they never fixed them which I'm a bit weary about.
TIA

DrEskimo

Paying now to get to the VT point, or paying via your monthly payments over the next 5months will cost you the same. The only difference is you get rid of the car now and pay the lump sum in one go, or your spread it over 5months and keep the car...

The issue of VT and excess mileage is a contentious one. I personally would not bet on being let off the hook and be prepared to pay the excess mileage fee, as you agreed to do when you read the T&Cs and signed the contract.

As another option, have you looked at what the settlement figure is, and how much the car would be worth trade? Look at WBAC, Tootle, Evans Halshaw, etc etc. It might be more advantageous to simply trade the car in and settle the finance than go through the process of VT.

Regarding maintenance, I was under the impression things like brake fluid changes are optional. In terms of the fixed service interval, these are either mileage dependent, or time dependent. It may be under the mileage, but it could be due based on the length of time that has passed.

DD1A

Can you shed some more light on "It might be more advantageous to simply trade the car in and settle the finance than go through the process of VT"

Is this when the dealer I trade into take up the balloon payment and I do a deal on another car?

What about the excess mileage would this kit count then as I'm taking it to trade somewhere else?

Apparently Audi say after 3 years it needs brake fluid change...
I didn't think audi fixed service was annual I'll check the MMI in the car and service book.
The fixed service interval is 20k miles for sure.

DD1A

Arnold clark quote £16050 without all extras declared.
Service is due in 310 days or 8100 miles according to the MMI

wgl2014

So you can get around £16k for the car, how much is your settlement figure?

If the difference is less than what it will cost you to hand the car back now it may make sense to go down this route....

DD1A

When I last called the automated line about a week ago it was around £20k

angrycrow

If you are at 30,000 miles now at three years you will be around 40,000 at four years so about 12,000 over your allowance. At 7.2 p a mile that works out to £864 in excess mileage charges.

Is it realy sensible to spend £2000 to avoid £864, let's put it another way, are you happy to throw away £1136 to have nothing.

At three years brake fluid is probably due for a change. Why scrimp on the things that stop your car in an emergency and could save your life.

angrycrow

Whilst I would not normally recommend them Halford auto Centre will do your brake fluid change for £40.

DD1A

@angrycow I have 5 months remaining until VT point. I don't plan to keep it for another 12 months.

I'm not going to get into a debate about brake fluid as this isn't the object of the post, I also have a 17 year old car that I use as a bit of fun at the weekend car, the brake fluid in this hasn't been a problem a few more months won't hurt until I give it back.

Back to the subject I read this on another post here,

"A voluntary termination is your right under the Consumer Credit Act, when you take out a hire purchase agreement on a car.

You can VT any time you like, however the finance company can only pursue you for a maximum of 50% of the total transaction value (subject to fair wear and tear)

Its a right, under law, designed to protect consumers, and terminates the contract.

Because the contract is terminated, conditions within it cant be enforced.

Finance companies HATE it. The clause within the CCA was designed originally to protect people who no longer could afford the monthly payments, however nowdays PCP finance is almost "sold" with a view to VT'ing.

Hence why finance companies try to claw back whatever money they can - fees, unfair wear and tear, mileage, etc, etc.

Its also why i think we'll see a big move to leasing of new cars - very limited consumer protection."


Basically if I VT at 50% point I'm guessing they will try to apply an end of contract clause to termination of contract for the excess mileage (there is no damage to the car).
What challenge would I be up against and chances of not paying the additional fees?

Mercdriver

Basically, how long is a piece of string? It's only during the last few years that finance companies have started to enforce mileage, because a clause designed to assist those that cannot keep up with payments is being exploited by others, no doubt with encouragement from sales people.

You can by all means refuse to pay the excess charge, but the finance house might pursue it as far as the County Court via default notices which could completely decimate your credit history.

It's a case of following the Dirty Harry misquote:

"Do you feel lucky, punk? Well, do ya?!"

DD1A

So in short there is no way off bypassing the mileage fee...
I have been unhappy with the purchase of a used car prior to this one, I took it back and got pushed into buying new and was patted on the back saying no more dramas or problems now.
After owning the new car for a month in the first month of ownership it broke down and wouldn’t start the car got recovered to the dealer and in their hands for 3 months they gave a free service as an apology.
The stereo has had a mind of its own and Bluetooth is very problematic, the boot lid is electric and quick frequently refuses to open on the key press which was all reported and been back multiple times to fix but they keep saying there’s nothing wrong with it and using a phone while driving is a no no and putting shopping and things in the boot is a pain in the butt.
When it last went in their in house cleaning team ruined the paint covered it in swirl marks and marring.
All reported and said they will get back to me to get it all fixed but they never do this was like 6-8 months ago.
Life is to busy to be chasing them and there is always a 6 week lead time on a booking.
You could call me fussy or a pain in the !!! type of customer but at the end of the day I’m paying £400 for something that isn’t as expected and the service is a bit crap if I’m honest. I’ve learnt from this manufacturer and won’t be going there again.

Part of me thinks try the luck route as you described as I have a few valid reasons... They know ive been un happy as I have taken complaints all the way up to the financial department but just get the ignorance “we are not doing anything” kind of attitude even though I’m paying £400 and put a few k’s worth of deposit down up front.