Voluntary Termination of PCP - "Use of Vehicle"

Deejj

Hi folks
I've read through a number of threads of VT but unable to find a specific answer to a question.

• I have a PCP agreement for a vehicle, and under the voluntary termination provisions, I notified the credit company on 01 September of my exercising my rights under s99 CCA 1974 to voluntary terminate the agreement.
• The agreement passed the 50% mark (yes total cost of vehicle) in June 2020.  The vehicle is in excellent condition.  In their letter they have advised that the mileage should not exceed 48k.  Current mileage is 37k - so well under. 

The question relates to "payments".
The last monthly payment went to the credit company on 03 August 2020.
The credit company has stated that I now owe them the equivalent of 31 days (about £430) for use of the vehicle.  Ignoring the fact that the days don't add up; I am uncertain whether there is any further liability for payment.
From what I can gather in all the advice about VT, if the provisions of s100 are met (under mileage, good wear and tear, over 50% paid) then there are no further liabilities.  This would suggest that their "requirements" to pay for "use of the vehicle" between 03 August and 01 September are immaterial and I'm not obliged to pay anything further.
Is my understanding correct?
I'd welcome any advice please
thanks
Deejj

AdrianC

You paid them on 3rd Aug
You notified them of the VT on 1st Sep
Are the payments in arrears for the month, or in advance? So does that 3rd Aug payment cover July or August...?

Deejj

AdrianC said:

You paid them on 3rd Aug
You notified them of the VT on 1st Sep
Are the payments in arrears for the month, or in advance? So does that 3rd Aug payment cover July or August...?

I must admit - I am unsure.  There is no specification in the agreement that says either way.
The last payment (02.03.21) occurs ½ month after the 3 year anniversary, so that suggests perhaps ½ arrears and ½ advance?

DUTR

Deejj said:

AdrianC said:

You paid them on 3rd Aug
You notified them of the VT on 1st Sep
Are the payments in arrears for the month, or in advance? So does that 3rd Aug payment cover July or August...?

I must admit - I am unsure.  There is no specification in the agreement that says either way.
The last payment (02.03.21) occurs ½ month after the 3 year anniversary, so that suggests perhaps ½ arrears and ½ advance?

Where is the September payment? To me it reads the full month payment is due.

Deejj

DUTR said:

Where is the September payment? To me it reads the full month payment is due.

That's my question... Does it require paying?

bazzyb

Deejj said:

DUTR said:

Where is the September payment? To me it reads the full month payment is due.

That's my question... Does it require paying?

The payments are usually a month in arrears, i.e. your first payment is paid around 30 days after the agreement is executed. So your September payment that was due at the point of VT needs to be paid. 

Deejj

bazzyb said:

The payments are usually a month in arrears, i.e. your first payment is paid around 30 days after the agreement is executed. So your September payment that was due at the point of VT needs to be paid. 

Thanks.  That makes sense. I'll make them correct the values for number of days and the "cost per day" they've quoted, which is wrong. Appreciate the advice folks.

crockp0t

I  have a vehicle on pcp contract for 4 years which is only into second year. Unfortunately due to a medical condition and DVLA withdrawing my driving license permanently I am having difficulty returning my vehic le  without astronomical   costs,surely  due to my incapacity  you   may be able to guide me in right direction or possibly offer advice .Webuyanycar or dealerships will not assist. 

AdrianC

crockp0t said:

I  have a vehicle on pcp contract for 4 years which is only into second year. Unfortunately due to a medical condition and DVLA withdrawing my driving license permanently I am having difficulty returning my vehic le  without astronomical   costs,surely  due to my incapacity  you   may be able to guide me in right direction or possibly offer advice .Webuyanycar or dealerships will not assist. 

Just because you can't drive doesn't automatically make the car redundant - there may be others in your household who can use it.

You are two years into a four year contract, so - yes - there will be costs to get out of it. WBAC etc can assist - they would buy the car for the market value, which will then go to the owner, the finance house, with you covering any shortfall. But the realities of the depreciation curve mean that this is unlikely to be a cheap solution for you either.

Grumpy_chap

crockp0t said:

I  have a vehicle on pcp contract for 4 years which is only into second year. Unfortunately due to a medical condition and DVLA withdrawing my driving license permanently I am having difficulty returning my vehic le  without astronomical   costs,surely  due to my incapacity  you   may be able to guide me in right direction or possibly offer advice .Webuyanycar or dealerships will not assist. 

Have you looked into the contract to see if there is a clause that covers exactly this type of situation?  You cannot be unique and there may be a process that takes into account disability rights act and the need to return the vehicle early without it being "voluntary"?