GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: johnboylds on 26 February 2017, 20:03
-
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
-
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/
-
Can you not deliver the car back yourself before the 1st? Rather than wait for the collection.
-
Not sure this helps, but posted just in case: http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights
-
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
-
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.
-
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...
-
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.
-
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.
-
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?
-
I’m on PCP and have used it for my last 2 cars, I like the flexibility and if taken out when attractive deposit contributions and low APR rates it can work out cheaper than a bank loan in terms of interest. Some people take out a PCP to get the deposit contribution from the dealer, then get a bank loan to pay it all off within 30days which can work out even cheaper, I haven’t done this myself however.
Even though the terms are 3-4years it’s very straightforward and easy to change cars earlier if you want to. For my current GTI I was in a little bit of negative equity (around £500) with my previous car due to wanting to change earlier (I was just enquiring at the time to get an idea of numbers), but VW offered to waive this and gave me a good discount on new GTI, presumably as they’ve got me “signed on” for another 4 years.
This can make things tricky if you want to change brands away from VW for your next car. But you can settle your PCP at any time if you wish and then sell the car privately/part exchange it but will likely end up costing you more than if you renewed another PCP direct with VW.
-
I've heard it from 3x different dealers at 3 different dealerships - VW, VW and Audi. All 3 advocated VT'ing the deal before it ends, and to keep the mileage as low as possible to keep the payments low. It's ridiculous really. They're passing the VT stress onto the consumer. Finance companies must be severely losing out.
I've still not decided whether I've got the minerals to try and escape the mileage penalty. I never intended to VT, but after a change in job location, it makes the most financial sense (and im being advised to by dealers!)
-
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?
Hi Ben and welcome.
You might want to start a fresh thread with the specifics of your shortlist to gauge opinions here.
Loads of people here use PCP and it’s prolific through the industry as it’s easy to tailor to an individual.
There are members here that are very experienced with PCP. As a means of financing a car it needs to be stacked up against PCH and bank loans, with the current low interest rate on PCP for Golfs it probably makes a good case for itself right now.
-
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?
As long as you estimate your mileage accurately...which is pretty hard to do. It should all work out pretty well
-
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?
Hi Ben and welcome.
You might want to start a fresh thread with the specifics of your shortlist to gauge opinions here.
Loads of people here use PCP and it’s prolific through the industry as it’s easy to tailor to an individual.
There are members here that are very experienced with PCP. As a means of financing a car it needs to be stacked up against PCH and bank loans, with the current low interest rate on PCP for Golfs it probably makes a good case for itself right now.
Thanks mate, I will do.
-
My understanding is that after you have paid 50% of the total costs you can VT the plan without any excess mileage charges. That isnt 50% of the payments. So on a 4 year plan that ISN'T after 24 months but it is later.
My advice is read your contract thoroughly. They will come after you for the excess mileage and try to intimate and intimidate but they have no legal rights. It will never go to court and it wont affect your credit rating. That finance company may decide not to do business with you again in the future, but that's it.
If in doubt take legal advice. But if you spend out on that then you might as well cough up the excess mileage.