finance PCP

[SimonD316]

Have you checked what your contract actually says? The excess they are quoting might only apply if handing back rather than VTing.

[DM1980]

I VT'd my Octavia at the beginning of the month and was collected last week. Even though i had done 15k more than the contracted mileage no excess charges were applied

[SimonD316]

11.4 in my contracts says...

If this Agreement terminates early, we will reduce the Maximum Total Mileage in the proportion which the actual period of hire bears to the period of the hire originally agreed. Any Excess Mileage Charge will be recalculated using that reduced Maximum Total Mileage

 

However page 1 of the contract talks about VT, and says...

...If you have already paid at least this amount plus any overdue installments and have taken reasonable care of the goods, you will not have to pay any more.

 

Hopefully it's someone who doesn't understand the legal rights to VT...

[morty]

Im 33 months into a 42 month PCP on a VRS diesel hatch with just under 27k miles in good nick only extras cruise and spare wheel. Im looking at changing for a brand new Fiesta ST Line 140 and the Ford dealer is offering the settlement figure of £13082.49 as a trade in price. (For info I paid £22k brand new for the VRS on 0% with 3 years free servicing). At the end of the PCP I have £10700 to pay and should be under the 35k miles my deal covered.

 

I WBAC'd (for reference) today at £13k (very surprised :-)!!!!

 

With regard to buying my new car I am going to get a personal contract Hire as its way cheaper than the PCP deals out there!!

 

 

[tigermad]

35 minutes ago, morty said:

Im 33 months into a 42 month PCP on a VRS diesel hatch with just under 27k miles in good nick only extras cruise and spare wheel. Im looking at changing for a brand new Fiesta ST Line 140 and the Ford dealer is offering the settlement figure of £13082.49 as a trade in price. (For info I paid £22k brand new for the VRS on 0% with 3 years free servicing). At the end of the PCP I have £10700 to pay and should be under the 35k miles my deal covered.

 

I WBAC'd (for reference) today at £13k (very surprised :-)!!!!

 

With regard to buying my new car I am going to get a personal contract Hire as its way cheaper than the PCP deals out there!!

 

 

Wbac'd?

[morty]

We buy any car .com

 

[Dodgy]

19 hours ago, randomskodaperson2 said:

Looks like Skoda finance are now charging excess mileage when using this option.

 

Told on first call no other charges - phoned today and been told excess will be charged. find it difficult to believe change in two phone calls due to memo sent to staff.

 

Would like to know if any other members have experienced this change or position from Skoda finance. Have lodged a complaint.

 

Yes, I have been told the same, I posted in a different thread. I was told I would be charged excess mileage on a pro-rata basis.

[randomskodaperson2]

I think there is a conflict in the wording of the contract. Termination your rights states you have a right to end the agreement with return of goods and half paid with a figure in the agreement. If you already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay any more.

 

11.4 refers to early termination.

 

I have paid more than half and want to end. It isn't early as I have completed the above so there is confusion in the two sections .

 

If I drop my car back with 4000 miles on the clock would Skoda readjust to pay me more back. Don't think so.

 

Anyway, my contract will be with my work colleagues in the law firm tomorrow. It will be interesting to see what they say. I will post back later in the week.

[andyvee]

This provides some interesting reading, the essence of it is that you do not have to pay excess mileage charges but be prepared for a fight ......

 

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/2/

 

Section 173 of the Consumer Credit Act also says that any terms that are conflicting and try to enforce an additional liability are non-enforceable

 

Section 173: Conflicting contractual terms are void and not enforceable
 

 

(1) A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

(2) Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

Taken from here 

http://www.legalbeagles.info/forums/showthread.php?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*

[tigermad]

On 2/26/2017 at 13:27, randomskodaperson2 said:

I think there is a conflict in the wording of the contract. Termination your rights states you have a right to end the agreement with return of goods and half paid with a figure in the agreement. If you already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay any more.

 

11.4 refers to early termination.

 

I have paid more than half and want to end. It isn't early as I have completed the above so there is confusion in the two sections .

 

If I drop my car back with 4000 miles on the clock would Skoda readjust to pay me more back. Don't think so.

 

Anyway, my contract will be with my work colleagues in the law firm tomorrow. It will be interesting to see what they say. I will post back later in the week.

I know it is only early in the week but have your colleagues found anything out yet?

[randomskodaperson2]

55 minutes ago, tigermad said:

I know it is only early in the week but have your colleagues found anything out yet?

Yes, she said that there is a conflict as one part the contract has been completed by going past the 50% and that part does not refer to excess mileage. She thought is was unfair to have another section way down at 11.4 due early exit mileage fees. Issue is one part gone past and can hand back with nothing further to pay 11.4 goes against is. She agrees with the above consumer credit article too.

I am also in discussion with What car who are very interested in this development.

 

[tigermad]

1 minute ago, randomskodaperson2 said:

Yes, she said that there is a conflict as one part the contract has been completed by going past the 50% and that part does not refer to excess mileage. She thought is was unfair to have another section way down at 11.4 due early exit mileage fees. Issue is one part gone past and can hand back with nothing further to pay 11.4 goes against is. She agrees with the above consumer credit article too.

I am also in discussion with What car who are very interested in this development.

 

Great. Thanks for the update. So are you going ahead with a VT?

[randomskodaperson2]

I think I go for the VT anyway . The complaint will take up to 8 weeks to sort so I would prefer to get shot of it and sort out the mileage issue later.

 

[tigermad]

3 minutes ago, randomskodaperson2 said:

I think I go for the VT anyway . The complaint will take up to 8 weeks to sort so I would prefer to get shot of it and sort out the mileage issue later.

 

I'm not doing mine until April/may. They will put a default on your credit file while it is being sorted. That's if they try to claim it.

Where have you complained to that will take up to 8 weeks?

[andyvee]

How about this as a way round it - with a just over a month to go before VT kicks in, call them and say you want to increase the mileage on your contract - increase it by enough that your pro-rata mileage at the point of VT will be covered.

 

All this will do is lower your residual and increase your monthly payments, as most people are on 0% interest anyway or a very low rate it will have no effect on the total amount payable on the agreement, it just shifts when the money gets paid.

 

As soon as this has all gone through, initiate the VT. You will now be under your new revised pro-rata mileage limit having paid the exact same 50%.

 

An example with some made up figures for comparison:

 

Purchase Price - £25k

Deposit - £2k

Interest - £0

GFV £10k at 10k pa 36 months.

35 monthly payments of £371.43

Total Amount payable - £25k

 

You can VT at £12.5k, with £2k deposit means £10.5k on monthly payments, or 28.27 months, or 28 months and a one off payment of £100.

 

So, as soon as the 28th payment has been made, call them and say I now want it to be 15k pa. Lets say the GFV gets reduced by (3 years x 5000 miles extra per year x 7.2p per mile) = £1,080. So your GFV is now £8,920. You have an extra £1,080 to pay over the remaining 7 months, or £154.29 per month extra = £525.72 per month.

 

Now, before the 29th payment is made initiate the VT. Pay the £100 to make it to 50% there and then. You are now under your newly agreed mileage limit  and no excess charges can apply.

 

Anyone see a hole in this argument?

 

 

[tigermad]

11 minutes ago, andyvee said:

How about this as a way round it - with a just over a month to go before VT kicks in, call them and say you want to increase the mileage on your contract - increase it by enough that your pro-rata mileage at the point of VT will be covered.

 

All this will do is lower your residual and increase your monthly payments, as most people are on 0% interest anyway or a very low rate it will have no effect on the total amount payable on the agreement, it just shifts when the money gets paid.

 

As soon as this has all gone through, initiate the VT. You will now be under your new revised pro-rata mileage limit having paid the exact same 50%.

 

An example with some made up figures for comparison:

 

Purchase Price - £25k

Deposit - £2k

Interest - £0

GFV £10k at 10k pa 36 months.

35 monthly payments of £371.43

Total Amount payable - £25k

 

You can VT at £12.5k, with £2k deposit means £10.5k on monthly payments, or 28.27 months, or 28 months and a one off payment of £100.

 

So, as soon as the 28th payment has been made, call them and say I now want it to be 15k pa. Lets say the GFV gets reduced by (3 years x 5000 miles extra per year x 7.2p per mile) = £1,080. So your GFV is now £8,920. You have an extra £1,080 to pay over the remaining 7 months, or £154.29 per month extra = £525.72 per month.

 

Now, before the 29th payment is made initiate the VT. Pay the £100 to make it to 50% there and then. You are now under your newly agreed mileage limit  and no excess charges can apply.

 

Anyone see a hole in this argument?

 

 

 

If you will be around 15k over already by the time you adjust your mileage surely this won't work? They will still pro rata what the agreement was originally i.e. 10k. Also I am sure they would know what you are up to when you ask to vt and you have only just changed your allowance. 

Edited 28 February, 2017 by tigermad

[andyvee]

But you now have a new agreement with a different mileage limit on it and the same VT at 50% of the agreement value.

 

Even if you did it a month earlier and made 1 payment at a higher rate so that you have legally entered in to the agreement you are still better off.

 

If you had declared 15k p.a at the start the figures would be:

Purchase Price - £25k

Deposit - £2k

Interest - £0

GFV £8920k at 15k pa 36 months.

35 monthly payments of £402.29

Total Amount payable - £25k

 

You can VT at 26 months, 2 1/4 months earlier and with 2800 miles less on the clock. Not going to make a huge difference in value on the car really.

[andyvee]

11 minutes ago, tigermad said:

 

If you will be around 15k over already by the time you adjust your mileage surely this won't work? They will still pro rata what the agreement was originally i.e. 10k. Also I am sure they would know what you are up to when you ask to vt and you have only just changed your allowance. 

You won't be 15k over as you haven't gone full term of 36 months, you are 8 months or 10,000 miles short of your new 45k agreement.

[tigermad]

2 minutes ago, andyvee said:

But you now have a new agreement with a different mileage limit on it and the same VT at 50% of the agreement value.

 

Even if you did it a month earlier and made 1 payment at a higher rate so that you have legally entered in to the agreement you are still better off.

 

If you had declared 15k p.a at the start the figures would be:

Purchase Price - £25k

Deposit - £2k

Interest - £0

GFV £8920k at 15k pa 36 months.

35 monthly payments of £402.29

Total Amount payable - £25k

 

You can VT at 26 months, 2 1/4 months earlier and with 2800 miles less on the clock. Not going to make a huge difference in value on the car really.

Thanks. Sounds good in theory. I wonder what other people think? Of course at this stage we have still not had confirmation that anyone has had to pay the excess yet. But by the time we do it will be too late for me. 

[tigermad]

2 minutes ago, andyvee said:

You won't be 15k over as you haven't gone full term of 36 months, you are 8 months or 10,000 miles short of your new 45k agreement.

I see what you mean now. I just hope they won't stop me vting if I do this. 

[andyvee]

Paying one payment at the higher rate is probably the safest option as you are bound by the contract then

[tigermad]

Just now, andyvee said:

Paying one payment at the higher rate is probably the safest option as you are bound by the contract then

Poops. Payment is due tomorrow and I fear the car will be nearly ready by my next payment. 

[tigermad]

Just looked at hire purchase form. They ask for current mileage and also charge £60 admin fee, not sure if Pcp is same. 

Edited 28 February, 2017 by tigermad

[tigermad]

Well that was short and sour. You cannot amend the mileage allowance on a PCP agreement, only on a leased vehicle. Oh well back to plan A

[cheezemonkhai]

http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights

 

They could probably argue that you failed to take care of the goods by increasing the mileage, so lowering the final value.

As such the mileage charge could be considered a recompense for that.