PCP Voluntary Termination - Excess mileage charge

[johnboylds]

Hi all,

I'm having a nightmare with VW finance, and wanted to gather your thoughts and experiences.

I rang VW finance on Wednesday to arrange a voluntary termination of my PCP on my mk7 Golf GTD. I've paid over 50% so I can hand the car back and walk away, and I had been advised numerous times by VW finance that as long as the car is roadworthy I won't have to pay anything to cover stone chips or excess mileage. I even have this in writing from them dated September 2016.

I wasn't aware that this was possible when I took out the pcp, but a guy at VW told me about it when I rang for a settlement figure, and it's really worked in my favour this time - If I'd taken the car to the end of term and tried to hand it back at that point I would've owed about £1,200 for excess mileage and I'm sure they'd have had something to say about the road rash on the bonnet! Prior to being told this by VW finance I had been putting money aside to cover excess mileage at the end of the contract.

However, he did advise that from March 1st they would be charged for excess mileage on PCP voluntary terminations, but as long as I contacted them before March 1st I wouldn't be charged. I therefore thought I'd had a lucky escape.

Fast forward to yesterday, when I rang VW back to ask them to collect the car. I was then informed that I've been given the wrong info, and the March 1st deadline actually applies to when the car is collected. Therefore they're now saying as it will take a few weeks to collect (even though I don't have to make any more payments as of yesterday's date) I'm going to be billed for the mileage!

Does anyone know if this is possible to enforce? I have been told that the right to hand back after 50% has been paid is actually a legal requirement of the type of finance.

 The wording of the contract is:

"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under the agreement. If you have already paid [at least half the total amount payable] plus any overdue instalments and have taken reasonable care of the goods , you will not have to pay any more"

Based on the above, is a charge excess mileage legally enforceable? it's going to cost me about £1,250 which I don't really have at the moment!

Cheers,

John

[Zack]

Sounds like you need accurate independent advice, Unless you're lucky enough to find someone suitably qualified on here I wouldn't listen to well intentioned but incorrect info. Don't take VWs or the dealers word as they are not unbiased. Try Citizens Advice or FCA   https://www.fca.org.uk/

[ajmoir36]

Can you not deliver the car back yourself before the 1st? Rather than wait for the collection.

[TurboTrev]

Not sure this helps, but posted just in case:  http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

[gadgeygoo]

Hi john/guys

how did you get on with this?

i'm looking to VT my audi with VW finance this week, and will be subject to the mileage penalty. wondering if i can get away with not paying it, as many people have online, and long as you have the minerals to battle them to the end...

thoughts?

cheers

[Guzzle]

I wouldn't hold out for a reply from OP, they haven't visited the site in over 2 years.

I would start by ensuring you have read your contract fully to see what it says about termination.

How much might you owe? If it's a modest amount, I would just pay up if you are invoiced in order to avoid it being passed over to a debt collection agency.

If it's a large amount, then what is your stomach for a fight and for doing your homework?

Lots of threads on various forums all over the internet about this, and it appears to be a grey area. But remember why VT exists, it is to protect those who encounter financial hardship after taking out such an agreement that they can no longer afford. If the Financial Ombudsman suspects you are abusing your consumer rights to avoid paying charges you have knowingly incurred they may take a dim view of this.

[fredgroves]

You say about abusing VT... my wife's car, the dealership actually was advocating VT as a routine process - they suggested taking a 4 year PCP (to keep the costs down) then VT'ing it to change earlier than 4 years...

Genuinely.... main dealership basically scr3wing over their manufacturer's finance company...

[kmpowell]

You say about abusing VT... my wife's car, the dealership actually was advocating VT as a routine process - they suggested taking a 4 year PCP (to keep the costs down) then VT'ing it to change earlier than 4 years...

Genuinely.... main dealership basically scr3wing over their manufacturer's finance company...

There’s a big difference between “voluntary termination” and “early settlement”.

The two shouldn’t be confused.

[fredgroves]

You say about abusing VT... my wife's car, the dealership actually was advocating VT as a routine process - they suggested taking a 4 year PCP (to keep the costs down) then VT'ing it to change earlier than 4 years...

Genuinely.... main dealership basically scr3wing over their manufacturer's finance company...

There’s a big difference between “voluntary termination” and “early settlement”.

The two shouldn’t be confused.

No, they were talking about VT... breaking the deal, nothing more to pay. No early termination charges.

I guess this is symbolic of the state of car selling at the moment - sell by any means possible.

[ben1987]

I’m really interested to know how owners find PCP, I’m looking at taking out PCP on a new Golf GTD or R-Line. I do about 20k mike a year. Anyone here using PCP?