PCP Voluntary Termination - Worried about additional charges
Discussion
Hi there
I wonder if anyone could provide any advice or guidance. I have recently voluntarily terminated my PCP agreement with my finance company on my 14reg Ford Fiesta ST, as I have paid off half the remaining balance.
My finance company have already highlighted that I will have incurred £165 of excess mileage charges already to my dismay - the car was on 4500 miles when purchased and my allowance was 9000 a year. Its just currently ticked over 23000.
What I am very worried about though is any additional charges on top of this. They have already asked that I pay £120 for the vehicle to be collected by their 3rd party collectors/auctioneers. Initially I was not aware of this cost and this was not explained in my contract - I have tried to fight this but just keep being told by my finance company that they will look into this - like hell they will!
In my contract it just says the usual term under the Voluntary Termination clause: 'As long as the car is in reasonable condition, taking into account fair wear and tear then there will be no additional charges'
This is a very vague requirement I feel and am concerned as to what they believe reasonable condition is. They claim this is mainly cosmetic? Is this right?
I am also wondering if I have any grounds for trying to wriggle out of paying a collection fee is this was not highlighted before. My other concern is that they will try and destroy me for the condition of the vehicle - I think it is in good condition and is spotlessly clean inside and out now. There's a few very small surface scratches however the alloys are a tad scuffed (its the ST model with 17's so are tricky to keep perfect) But I am prepared for them to try and claim silly money for additional charges.
I have taken pictures of the vehicle throughout and kept all my paperwork for the car as regards to any MOT and service info.
The car is due for collection next wednesday. If any one could provide any advice I would massively grateful!
I wonder if anyone could provide any advice or guidance. I have recently voluntarily terminated my PCP agreement with my finance company on my 14reg Ford Fiesta ST, as I have paid off half the remaining balance.
My finance company have already highlighted that I will have incurred £165 of excess mileage charges already to my dismay - the car was on 4500 miles when purchased and my allowance was 9000 a year. Its just currently ticked over 23000.
What I am very worried about though is any additional charges on top of this. They have already asked that I pay £120 for the vehicle to be collected by their 3rd party collectors/auctioneers. Initially I was not aware of this cost and this was not explained in my contract - I have tried to fight this but just keep being told by my finance company that they will look into this - like hell they will!
In my contract it just says the usual term under the Voluntary Termination clause: 'As long as the car is in reasonable condition, taking into account fair wear and tear then there will be no additional charges'
This is a very vague requirement I feel and am concerned as to what they believe reasonable condition is. They claim this is mainly cosmetic? Is this right?
I am also wondering if I have any grounds for trying to wriggle out of paying a collection fee is this was not highlighted before. My other concern is that they will try and destroy me for the condition of the vehicle - I think it is in good condition and is spotlessly clean inside and out now. There's a few very small surface scratches however the alloys are a tad scuffed (its the ST model with 17's so are tricky to keep perfect) But I am prepared for them to try and claim silly money for additional charges.
I have taken pictures of the vehicle throughout and kept all my paperwork for the car as regards to any MOT and service info.
The car is due for collection next wednesday. If any one could provide any advice I would massively grateful!
I believe most will use the BVRLA 'fair wear and tear' guidelines which should be something like this:
http://www.drive-electric.co.uk/wp-content/uploads...
That said, it's guidelines and the financial ombudsman may well agree that following it to the letter is not fair, for example you could have a heavily abused car that has damage that just falls within the acceptable limits and not be charged, but have a showroom-condition car with 1x 55mm scrape on a wheel and be charged £55.
edit: I have heard many stories of people challenging charges and them being repeatedly reduced or waived, I imagine it varies by company and the vehicle itself.
http://www.drive-electric.co.uk/wp-content/uploads...
That said, it's guidelines and the financial ombudsman may well agree that following it to the letter is not fair, for example you could have a heavily abused car that has damage that just falls within the acceptable limits and not be charged, but have a showroom-condition car with 1x 55mm scrape on a wheel and be charged £55.
edit: I have heard many stories of people challenging charges and them being repeatedly reduced or waived, I imagine it varies by company and the vehicle itself.
You'd have been better posting this in SPL. As far as I'm aware (and a few law websites via Google back it up) if you VT under s100 of the CCA you can't be charged excess mileage. I'd also be amazed if you can be made to pay the finance company's collection fees. You've terminated, your liability is limited in law, and if they have to pay to collect the vehicle then that's surely their own problem? I'd seek proper advice (hint: not from the finance company or dealership) if I was you.
I have VT'd two cars over the years and was never charged a penny for anything.
(I've also handed back two cars at the end of a pcp as well with no issues)
Regarding VT though. My cars were in good nick, one was under mileage the other more recent car, over mileage allowance by about 6000 miles.
Excess mileage shouldn't be charged under VT, they words came from the finance company when I called them up to VT. There was never a charge for collection. I'm pretty sure my cars were going straight to auction, so the finance company never see them.
Double check all the terms and conditions of the contract, especially the part about VT.
A colleague at work just VT'd a BMW last month, wasn't charge for excess mileage but was charged for rear bumper damage.
Regarding the damage to your ST, clean the car as best you can, polish any scratches to reduce/remove marks etc... if you have the grey alloys, get a sharpie or similar to colour the marks.
You tend to find that pcp returns aren't checked that vigorously, but leasing company's tend to be more strict and try and get money out of you as the car usually goes back to them.
(I've also handed back two cars at the end of a pcp as well with no issues)
Regarding VT though. My cars were in good nick, one was under mileage the other more recent car, over mileage allowance by about 6000 miles.
Excess mileage shouldn't be charged under VT, they words came from the finance company when I called them up to VT. There was never a charge for collection. I'm pretty sure my cars were going straight to auction, so the finance company never see them.
Double check all the terms and conditions of the contract, especially the part about VT.
A colleague at work just VT'd a BMW last month, wasn't charge for excess mileage but was charged for rear bumper damage.
Regarding the damage to your ST, clean the car as best you can, polish any scratches to reduce/remove marks etc... if you have the grey alloys, get a sharpie or similar to colour the marks.
You tend to find that pcp returns aren't checked that vigorously, but leasing company's tend to be more strict and try and get money out of you as the car usually goes back to them.
Edited by pd2 on Thursday 11th May 01:34
pd2 said:
Double check all the terms and conditions of the contract, especially the part about VT.
The contract may well state the OP needs to pay mileage charges on a VT'd car. The protection provided by the Consumer Credit Act trumps this, however, but most finance companies will still quote irrelevant sections and push hard with legal letters, debt collectors etc to try to get money back. They lose out when a car is returned via VT after all. It doesn't mean they're legally in the right, however. As I said, the OP would be better off seeking professional advice.I think the collection fee I think I have more of a comeback as it does not state anything about this in my contract under the Voluntary termination clause. There is however a term which states that there will be charges for collection of the vehicle under the Termination clause, however I would have thought these are completely separate. They did give me the option to drop the car off however their auction group is based in Yorkshire! And I'm in the south east.
As regards to the mileage there is an area in the contract which does say if the agreement is ended early then the excess mileage will be charged on a pro rata basis. Although if the voluntary termination part states 'no extra charges' then is this void?
They also said that the collection agent would make me sign something to say I'm in agreeance with anything they feel is above fair wear and tear. Has anyone had any experience of refusing to sign off.
Thanks for all the advice
As regards to the mileage there is an area in the contract which does say if the agreement is ended early then the excess mileage will be charged on a pro rata basis. Although if the voluntary termination part states 'no extra charges' then is this void?
They also said that the collection agent would make me sign something to say I'm in agreeance with anything they feel is above fair wear and tear. Has anyone had any experience of refusing to sign off.
Thanks for all the advice
Ads22 said:
I think the collection fee I think I have more of a comeback as it does not state anything about this in my contract under the Voluntary termination clause. There is however a term which states that there will be charges for collection of the vehicle under the Termination clause, however I would have thought these are completely separate. They did give me the option to drop the car off however their auction group is based in Yorkshire! And I'm in the south east.
As regards to the mileage there is an area in the contract which does say if the agreement is ended early then the excess mileage will be charged on a pro rata basis. Although if the voluntary termination part states 'no extra charges' then is this void?
They also said that the collection agent would make me sign something to say I'm in agreeance with anything they feel is above fair wear and tear. Has anyone had any experience of refusing to sign off.
Thanks for all the advice
You've terminated your contacted 'with NOTHING more to pay' - they CANNOT charge you for collection of their own asset. I VT'd a car on monday and BCA turned up. An hour later it was gone with £29 worth of damage (which was fair) to inside door trim. Do not pay the collection fee.As regards to the mileage there is an area in the contract which does say if the agreement is ended early then the excess mileage will be charged on a pro rata basis. Although if the voluntary termination part states 'no extra charges' then is this void?
They also said that the collection agent would make me sign something to say I'm in agreeance with anything they feel is above fair wear and tear. Has anyone had any experience of refusing to sign off.
Thanks for all the advice
VT'd two cars in the past, that was through VAG Finance, never paid any collection fee or excess mileage. As many have said, the agreement states you pay no more. In both cases the car was in good condition and passed the respective guidelines set out.
It does seem each manufacturers have different guidelines on this. OP - I would dispute this with them.
G
It does seem each manufacturers have different guidelines on this. OP - I would dispute this with them.
G
Well good news. I rang the finance company today and they've already waivered the collection charges. Must have been because I complained. I don't think I'm going to wriggle out of the excess mileage charges due to what it states in my contract but I guess it's worth a try. Let's just hope I'm not hammered with any costs on the vehicle .
However I discovered today that I have to sign a document to agree that I am happy to accept the costs of any excessive wear and tear on the vehicle on collection. I am very reluctant to do this however they stated if not that I'll be liable for a cancellation charge of the appointment. How do I work my way around this if I do not agree with the charges. Thanks.
However I discovered today that I have to sign a document to agree that I am happy to accept the costs of any excessive wear and tear on the vehicle on collection. I am very reluctant to do this however they stated if not that I'll be liable for a cancellation charge of the appointment. How do I work my way around this if I do not agree with the charges. Thanks.
Edited by Ads22 on Thursday 11th May 19:15
Ads22 said:
Well good news. I rang the finance company today and they've already waivered the collection charges. Must have been because I complained. I don't think I'm going to wriggle out of the excess mileage charges due to what it states in my contract but I guess it's worth a try. Let's just hope I'm not hammered with any costs on the vehicle .
However I discovered today that I have to sign a document to agree that I am happy to accept the costs of any excessive wear and tear on the vehicle on collection. I am very reluctant to do this however they stated if not that I'll be liable for a cancellation charge of the appointment. How do I work my way around this if I do not agree with the charges. Thanks.
Just reading this thread, as I’m in the same position wanting to VT having paid over 50% of the value as stated in my PCP. Just wondered if you got sorted in the end and did it impact you getting car finance elsewhere? Thanks in advance However I discovered today that I have to sign a document to agree that I am happy to accept the costs of any excessive wear and tear on the vehicle on collection. I am very reluctant to do this however they stated if not that I'll be liable for a cancellation charge of the appointment. How do I work my way around this if I do not agree with the charges. Thanks.
Edited by Ads22 on Thursday 11th May 19:15
MissFlashGordon said:
Just reading this thread, as I’m in the same position wanting to VT having paid over 50% of the value as stated in my PCP. Just wondered if you got sorted in the end and did it impact you getting car finance elsewhere? Thanks in advance
Voluntary Termination is an option under the halves and thirds rules and simply allows you to return the car and walk away, if you have paid over 50% of the original total invoice price.I VT'd a VW car at 50% and never paid any collection fee, as they weren't collecting the car twice, just the once albeit early.
As for mileage, the same rules will apply as they would apply for the full term, albeit pre-rated for the months you have actually burnt. That is a totally reasonable position for them, and totally fair to the person returning the car.
What it doesn't allow for is for someone (who for example is on 5yrs at 10K PA) to return a car early at 36months with 49K miles on and expect to walk away. That car would clearly be 19K miles over average and subject to 19K miles of value depreciation, as they would expect the car to have 30k miles.
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