There is a radio programme on BBC radio 4 @ 12:04pm today - Moneybox Live, which features potential issues with PCP contracts on cars....

 

http://www.bbc.co.uk/programmes/b09nqnxd

Edited 20 January, 20188 yr by muddyjim

Good spot. Got in on. Thanks

So in summary then, excess mileage charge payments may, or may, not be lawful.

With over one million pcp agreements in place, it needs testing at court and resolving.

OK, so who had a gun put to their head and were forced to sign a PCP with an excess mileage clause against their will? It's not like the charges weren't stated up front, with most or all PCP ads saying something like "10_000 miles per annum, and £0.10 per mile above this".

Yep, seem unlikely. Mileage charges were very clear when I had a PCP (my VRS) 10yr ago.

I'll have to listen to it but :

If the mileage charges aren't lawful - what's the difference between that and condition charges.

 

I know there is a problem if you end the agreement early (i.e. Voluntary Termination) as the agreement is  doesn't say that the charges apply -as all the agreement says is the car has to be in "reasonable condition". The Consumer Credit Act doesn't allow for any further charges to be made.  I don't see this as a big problem as if you've paid more that half (as you have to to be able to VT)  it really doesn't matter if it's an HP or PCP to the finance company.  I've never seen any condition or mileage charges on a HP agreement.