PCP missold policy and now stuck with mileage charges
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Following this with interest as Im in exactly the same boat with the same finance company. I havent spoken to them yet as they are not open today. I am 18 months into my 3 year PCP and will be hugely over my mileage allowance owing the the dealer persuading me to reduce from 12,000 to 10,000- yes I dont need berating, I signed the contract blah blah blah!
I'm following to try and determine what is the best thing to do. Currently my thoughts are;
1. Get a current settlement figure and pay with a bank loan then potentially sell on
2. Keep the car until the 3 year point, hand it back get a loan for the mileage and get a new car
3. VT the PCP
My excess milegae charges are going to be circa £8000 by the end of the 3 years!!:(:(0 -
foxy-stoat wrote: »If that was the case then the OP would not have to pay any excess mileage charges when he VT'd - but there is a possibility that he will. Contract was still made on the basis that the stated mileage was half of the actual mileage required to keep the price down.
The charges DO only become payable at the end of term, however if you terminate the contract for whatever reason then you may or may not be liable for further charges.0 -
Willingwisp wrote: »Following this with interest as Im in exactly the same boat with the same finance company. I havent spoken to them yet as they are not open today. I am 18 months into my 3 year PCP and will be hugely over my mileage allowance owing the the dealer persuading me to reduce from 12,000 to 10,000- yes I dont need berating, I signed the contract blah blah blah!
I'm following to try and determine what is the best thing to do. Currently my thoughts are;
1. Get a current settlement figure and pay with a bank loan then potentially sell on
2. Keep the car until the 3 year point, hand it back get a loan for the mileage and get a new car
3. VT the PCP
My excess milegae charges are going to be circa £8000 by the end of the 3 years!!
:(
For 2,000 miles a year extra? :eek:
What are you driving, a Bentley?0 -
I VT'd my agreement last year and when I was looking into the process, I found this resource very helpful as a starting point:
http://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights0 -
Willingwisp wrote: »Following this with interest as Im in exactly the same boat with the same finance company. I havent spoken to them yet as they are not open today. I am 18 months into my 3 year PCP and will be hugely over my mileage allowance owing the the dealer persuading me to reduce from 12,000 to 10,000- yes I dont need berating, I signed the contract blah blah blah!
I'm following to try and determine what is the best thing to do. Currently my thoughts are;
1. Get a current settlement figure and pay with a bank loan then potentially sell on
2. Keep the car until the 3 year point, hand it back get a loan for the mileage and get a new car
3. VT the PCP
My excess milegae charges are going to be circa £8000 by the end of the 3 years!!:(:(
Is there a reason why you don’t want to buy the car?0 -
I'd go for 4. Keep the car for 3 years. Pay the "balloon" payment to buy the car - you no longer have to pay the mileage charge. Take out the lowest interest loan you can find to pay it.
Then keep the car until it falls to bits. Don't get sucked into another bad PCP deal.If it sticks, force it.
If it breaks, well it wasn't working right anyway.0 -
I'd go for 4. Keep the car for 3 years. Pay the "balloon" payment to buy the car - you no longer have to pay the mileage charge. Take out the lowest interest loan you can find to pay it.
Then keep the car until it falls to bits. Don't get sucked into another bad PCP deal.
In fairness it wasnt a bad PCP deal. He either put down mileage that was way lower than what he was actually doing OR his circumstances changed. The easiest way to rectify that is to phone the finance company and have the payments recalculated, or simply set aside the excess mileage amount each month in savings.
Kicking the can down the road until theres a massive bill looming (a) is not the answer and (b) is not the fault of the PCP deal0 -
The highest excess charges I saw, were 44p per mile, but it still doesn't work for the expect 6000 miles over the limit and cost of £8000 for that. So it's either typo or a lot of excess miles.For 2,000 miles a year extra? :eek:
What are you driving, a Bentley?
It's possible to recalculate payments, depending on finance company.0 -
Willingwisp wrote: »Following this with interest as Im in exactly the same boat with the same finance company. I havent spoken to them yet as they are not open today. I am 18 months into my 3 year PCP and will be hugely over my mileage allowance owing the the dealer persuading me to reduce from 12,000 to 10,000- yes I dont need berating, I signed the contract blah blah blah!
I'm following to try and determine what is the best thing to do. Currently my thoughts are;
1. Get a current settlement figure and pay with a bank loan then potentially sell on
2. Keep the car until the 3 year point, hand it back get a loan for the mileage and get a new car
3. VT the PCP
My excess milegae charges are going to be circa £8000 by the end of the 3 years!!:(:(
At 18 months through a 3 year deal, you won't be able to VT. You can VT when you have paid 50% of the amount covered by the agreement. It is not 50% through the term. On most PCPs that is close to the end o the 3 years.0
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