Voluntary Termination?

[MidlandDan84]

Dear all,

Just a speculative query concerning VT.

I'm 1/2 way though a HP agreement and have considered a VT. Spoke to Santander and they have said as long as the car is within the fair wear and tear guidelines with the BVRLA then I should have to pay no more.

HOWEVER, I queried the mileage limitation (the HP agreement I took out had no mileage restrictions) but apparently mileage is within the 'fair wear and tear' guidelines and at the discretion of the inspection team.

However, know one could or would tell me what counted as 'fair wear and tear' mileage.

I've covered over 50k in 2 years, obviously well above a normal 12k per annum, heard some horror stories of companies charging 14p per mile anything over what they consider 'fair wear and tear'!

In theory if I went ahead with the VT I would be charged £1000s in excess mileage charges.

Anyone had any experience of this?

[MidlandDan84]

Well, the reason I took out HP was that I wouldn't be tied into any mileage restrictions.

I looked into Motonovo HP and they said, and it was clearly stated, that if you VT you will be charged at 14p a mile for anything other 12,000 per annum you have covered. However, the agreement has now mileage restrictions.

To be honest, its not clear and can imagine lots of people getting shafted by it!

[MidlandDan84]

So in theory, if you say take out HP over a 5 year period.

After 2 1/2 years you chose to VP.

If you have done 50,000 miles over the 2.5 period then you could be liable for £2800 (assuming the finance company think that 30,000 is acceptable).

[MidlandDan84]

northandy said:

It "may" but remember its contractual, so cant be used against you.

I recently vt'd a bmw with bmw finance, and bought another car on bmw finance, not even queried by them.

Did you get any issues with mileage under fair wear and tear?

[MidlandDan84]

wargriff said:

If you 'VT' a contract you wont be liable for the excess mile charge. The excess charge is if the car is returned to the finance house at contract end on a PCP.
HP allows you to 'VT' the vehicle as soon as 50% of the total cost has been paid. This total cost includes deposit/part exchange. The figure is detailed in the contract under 'termination rights'

Indeed, that's what I thought.

It is what mileage companies class as 'fair wear and tear' is the issue.