VW FS applying excess mileage charge before end of PCP

[Piginapoke]

Hi all. My Tiguan is 2/3 way through a PCP, and we intend to buy it at the end of the term, next year. It’s 7k miles over it’s scheduled mileage, but it’s not something we were bothered about as we plan to buy it. The car was serviced last month and I have just got an excess mileage bill for £400 (for the 7k over budget miles). This can’t be correct?!

[Alucidnation]

Why isn't it correct?

[Piginapoke]

I thought excess mileage charges only apply when you hand the car back at the end of the term

[Wooda80]

Never heard of that before, nor seen a PCP agreement where that would be in the terms conditions.

Definitiely worth a phone call to VWFS, it's possibly been raised in error.

Only other possible explanation that I can think of is if you have some kind of service plan / maintenance contract on the car in which case you may have had more servicing than your contract mileage allowed for.

[Sheepshanks]

I'm sure I have seen this before, although I suppose it could have been on PCH.

I guess on a PCP if they insisted on the charge then they'd have to balance it by reducing the GFV - I don't see how they could change the total amount you pay.

[Piginapoke]

That’s useful, thanks. I’d be surprised if it’s a service plan charge, levied at 4.6p per mile.

[rustyuk]

I went over the allowed mileage on a leased VW and the excess service charge was mental.

[essayer]

Never heard of that before! Is it in the terms and conditions of the PCP?

Edited by essayer on Wednesday 28th November 22:43

[Sheepshanks]

Piginapoke said:

That’s useful, thanks. I’d be surprised if it’s a service plan charge, levied at 4.6p per mile.

The service plan on PCP is usually just a couple of fixed interval services, so that shouldn't change. Unless you've opted for a full maintenance plan?

[tickedon]

I believe it’s a reasonably new term designed to stop people abusing PCP by signing up to a low mileage, low monthly deal and then VTing...

However, they can’t charge more than the total price, so if you buy outright at the end (rather than simply hand back), they’d need to refund any interim additional mileage payments they’d charged you.

[ZX10R NIN]

It's a new measure being taken up by most manufacturers now as they're now enforcing the annual mileage (which is stated in all leases & PCP/H agreements) rather than the overall mileage due to people abusing the system & VT'ing early.

[GreatGranny]

Surely even if it's a new measure existing contracts won't be affected.

OP, as has been said, first thing to do is ring the finance company.

[pavarotti1980]

ZX10R NIN said:

It's a new measure being taken up by most manufacturers now as they're now enforcing the annual mileage (which is stated in all leases & PCP/H agreements) rather than the overall mileage due to people abusing the system & VT'ing early.

Would the manufacturer therefore refund the excess mileage charge if at the end of the term the vehicle was within the mileage limits?

Just wondering, not affected by the scenario

[ZX10R NIN]

Yes they would as you've not exceeded your overall mileage therefore not affected you GFV.

[essayer]

Isnt this change a tacit admission that post-VT charges are indeed unenforceable?

[CrgT16]

In my contract it clearly states that if VT’ing the mileage allowance will be calculated on a pro data basis which seems fair to me.

[Terminator X]

Don't pay it. Not an issue to the "owner" as the contract presumably calls for you to pay X at the end of the agreement and/or hand it back with any excess mileage paid up. If the car is paid for in full at agreement end then excess mileage is relevant.

TX.

[Piginapoke]

Having reviewed the paperwork, the change relates to the fixed price servicing plan, not the PCP. It still seems steep at 5p a mile, why they can't just increase our service plan contributions I don't know.

It's my last time with VWFS, never again.

[jamei303]

Presumably you were notified of such charges beforehand?

[Sheepshanks]

Piginapoke said:

Having reviewed the paperwork, the change relates to the fixed price servicing plan, not the PCP. It still seems steep at 5p a mile, why they can't just increase our service plan contributions I don't know.

So is it a full maintenance plan, rather than a service plan?

Doesn't make sense if it's "fixed price servicing" as the plan is for a fixed number of services (used to be 3 but now it's 2). If you needed another service you'd just have to pay for it.

Full maintenance on a PCP Golf doesn't make sense either, unless you're doing loads of miles.