BMW Finance Excess Mileage Dispute - Rejected Appeal

rav_

Hi all

voluntarily terminated my agreement (over 3 years into a 4 year PCP to sign up to another lease), argued this with bmw but they are standing firm even though I had in writing that it had to be under 32k (was 30,500), pro rate would have been 28k but I have it clearly in writing, from the dealer (who spoke with bmw finance):

The car should be on approximately 31,966 miles in March next year... For example, the car might be on 30,000 miles in March 2020, but the agreement says it will be on 31,996 in March 2020 – therefore you are under the mileage and there should be no costs to pay for mileage.

now this should be an open and shut case if I go to the ombudsman (which I don’t want to do), they said this in their response:

Will I be liable for any other charges if I proceed with voluntary termination and return the vehicle to you? You may be liable for other charges such as, excess mileage and/or vehicle damage costs in accordance with your agreement. Please be aware excess mileage is pro-rated to the month the voluntary termination is accepted.’

Surely the excess mileage is the number that was in the email from the dealership so I shouldn’t have to pay? Also if I go to the ombudsman would they put the mark on my credit file whilst it’s a pending case, or if I do pay it now to avoid that would that be me waiving my right to take it to the ombudsman as I want to avoid a mark on my file, as I don’t expect them to clear this if I win the case/lose and pay?

thanks

molerat

Generally speaking the ombudsman is finding in favour of the lender in excess mileage cases but if you can prove the dealer had this advice from BMW finance then you will likely have a good case.   Any credit marker will be removed if the ombudsman finds in your favour - you will need to make that part of your claim to be sure.

DrEskimo

You post is very difficult to understand.

What was the agreed mileage over the 48month term?
What month did you VT? Exactly 36months in?
What is the mileage now?

rav_

DrEskimo said:

You post is very difficult to understand.

What was the agreed mileage over the 48month term?
What month did you VT? Exactly 36months in?
What is the mileage now?

Hi

32k
handed it in at approx 39 months

30,500 approx when it was given back

molerat said:

Generally speaking the ombudsman is finding in favour of the lender in excess mileage cases but if you can prove the dealer had this advice from BMW finance then you will likely have a good case.   Any credit marker will be removed if the ombudsman finds in your favour - you will need to make that part of your claim to be sure.

Cheers, it’s pretty clear, the email from the dealer does say the costs are approximate but that is a moot point as it’s based on the mileage figure

DrEskimo

rav_ said:

DrEskimo said:

You post is very difficult to understand.

What was the agreed mileage over the 48month term?
What month did you VT? Exactly 36months in?
What is the mileage now?

Hi

32k
handed it in at approx 39 months

30,500 approx when it was given back

The total mileage over the whole agreement was 32,000?
What month would the contract have been in at March 2020 when the dealer suggested it would be 31,966?

rav_

DrEskimo said:

rav_ said:

DrEskimo said:

You post is very difficult to understand.

What was the agreed mileage over the 48month term?
What month did you VT? Exactly 36months in?
What is the mileage now?

Hi

32k
handed it in at approx 39 months

30,500 approx when it was given back

The total mileage over the whole agreement was 32,000?
What month would the contract have been in at March 2020 when the dealer suggested it would be 31,966?

Month 39

SuperAllyB

Doesn't help OP but yet more proof that many dealers just tell customers whatever it takes to get a deal out of them!

ToxicWomble

Well if the agreed mileage over 48mo this was 32,000 and you are at 30,500 on month 39 then you are over you allowance based on 32,000/48*39=26,000 so I would expect the excess to be paid on 4,500 miles.
However - if you have an email that essentially says “ nothing to pay on excess mileage” then I can’t see them having any case.
As above tho - we had an Audi salesman trying to sell us a new car and talking about VT. In his figures he had a VT value of 12,500 - finance remaining 15,000 - amount owing 2,500 which he then tried to lump into his new finance figures.
When I pointed out that surely by VT that meant nothing further was owed he got very defensive. I didn’t take him up on his “generous” offer

DrEskimo

ToxicWomble said:

As above tho - we had an Audi salesman trying to sell us a new car and talking about VT. In his figures he had a VT value of 12,500 - finance remaining 15,000 - amount owing 2,500 which he then tried to lump into his new finance figures.
When I pointed out that surely by VT that meant nothing further was owed he got very defensive. I didn’t take him up on his “generous” offer

I am afraid the dealer was absolutely correct.

If the 50% total amount payable to VT was £12,500, then the total amount payable is £25,000, right?
If you had £15,000 still remaining, then that means you had only paid £10,000 of the £25,000 total. You would therefore be £2,500 short of the £12,500 needed to exercise your right to VT.

ToxicWomble

It was month 44/48 so we had paid significantly over 50% especially with our £6k deposit factored in
he was trying to tell us that he would give us 12.5 part ex but there was 15 left to pay on the pcp so there was 2.5 owing.

DrEskimo

ToxicWomble said:

It was month 44/48 so we had paid significantly over 50% especially with our £6k deposit factored in
he was trying to tell us that he would give us 12.5 part ex but there was 15 left to pay on the pcp so there was 2.5 owing.

How much had you paid in total by this point?