PCP Advice

AdrianC

dorrian22 said:

Can they still request the money for the excess miles if I VT?

That's the bit that's the grey area.

They can definitely charge you for returning the car outside a condition commensurate with fair wear and tear. Does having covered three times the contract mileage fall into that? Some courts have said yes, some have said no.

Either way, expect to have to fight it.

Also - consider whether it's going to be cheaper to pay the excess mileage or to change the contract to a higher contracted mileage. The monthly will go up - but will that be cheaper than the per-mile excess...?

dorrian22

AdrianC said:

dorrian22 said:

Can they still request the money for the excess miles if I VT?

That's the bit that's the grey area.

They can definitely charge you for returning the car outside a condition commensurate with fair wear and tear. Does having covered three times the contract mileage fall into that? Some courts have said yes, some have said no.

Either way, expect to have to fight it.

Also - consider whether it's going to be cheaper to pay the excess mileage or to change the contract to a higher contracted mileage. The monthly will go up - but will that be cheaper than the per-mile excess...?

Thank you for that, it's very helpful!

Ford don't give the option to change the miles part contract in response to your last point.

Could I realistically VT at month 35 of 36 for free then?

born_again

dorrian22 said:

Could I realistically VT at month 35 of 36 for free then?

You are really going to have to read the contract you signed. It maybe that given previous cases where they have been unable to recover excess mileage. That it is being written in to the contracts.

If you did and they took you to court. Well X on MSE said I won't have to pay it, is not going to cut it as a defence is it.

dorrian22

Cheers for that! I’m aware of the defence etc. I know it’s have to be backed up in the contract. 

Just wondering if it was legal to VT at month 35 of 36 and then realistically as the contract hasn’t been completed they can’t legally make me pay the excess miles can they? 

Mercdriver

dorrian22 said:

So can I VT at 35 months as per my above post simply to avoid fees or will they cotton on? Can they still request the money for the excess miles if I VT?

Yes, and they often do.  A proper precedent hasn't been set.  If you refuse to pay it and a County Court sides with the finance house, then you would end up with a CCJ, which if not satisfied within a month can do untold damage to your credit history for 6 years

ToxicWomble

You have benefitted from lower monthly payments which were based on a set mileage which you have massively exceeded.
Whilst technically you may be able to VT and may not be chased for the excess mileage - you are essentially using a technicality to get away with fraud/theft so morally are very much in the wrong.
VT was designed to help people who struggle financially NOT to help people wriggle out of their contractural responsibilities and be held accountable to an agreement.
I can imagine the outrage if the finance company tried something similar on you.
The sooner they close the VT “loophole” the better imo.

Mercdriver

ToxicWomble said:

You have benefitted from lower monthly payments which were based on a set mileage which you have massively exceeded.
Whilst technically you may be able to VT and may not be chased for the excess mileage - you are essentially using a technicality to get away with fraud/theft so morally are very much in the wrong.
VT was designed to help people who struggle financially NOT to help people wriggle out of their contractural responsibilities and be held accountable to an agreement.
I can imagine the outrage if the finance company tried something similar on you.
The sooner they close the VT “loophole” the better imo.

I agree that the VT clause is being abused by some, often at the encouragement of dealers.  I also think that the overuse of it may lead to the loss of it to the detriment of those that need to use it.  I wouldn't however call it fraud.  It's not.  I do think that if the VT clause is reformed then the selfishness of those that have used it is reprehensible, but it still isn't fraud.  I think it needs amending to specify the proper reason for VT.  

As far as the OP is concerned, he has had a change of job which has increased his mileage.  More finance companies need to allow a change of plan during the term tto allow for this.  It wouldn't be hard for them to work out the amounts.

dorrian22

Yes the change of job has contributed to this, and Ford, given my valid reason, refuse to amend the agreement in which I stated I'd be happy to pay £20/30 per month extra to balance out the change. I will explore the VT option with Ford.

Thanks to all for your assistance.