VW finance voluntary termination - excess mileage charge!?
Discussion
Hi all,
Long time lurker, first time poster.
I rang VW finance tonight to arrange a voluntary termination of my PCP on my mk7 Golf GTD. I've paid over 50% so I can hand the car back and walk away, and I have been advised as long as the car is roadworthy I won't have to pay anything to cover stone chips or excess mileage.
I wasn't aware that this was possible when I took out the pcp, but a guy at VW told me about it when I rang for a settlement figure, and it's really worked in my favour this time - If I'd taken the car to the end of term and tried to hand it back at that point I would've owed about £1,200 for excess mileage and I'm sure they'd have had something to say about the road rash on the bonnet!
However, he did advise that from March 1st they would be charged for excess mileage on PCP voluntary terminations. Does anyone know if this is possible to enforce? I have been told that the right to hand back after 50% has been paid is actually a legal requirement of the type of finance. The wording of the contract is:
"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under the agreement. If you have already paid [at least half the total amount payable] plus any overdue instalments and have taken reasonable care of the goods , you will not have to pay any more"
Based on the above, is a charge excess mileage legally enforceable?
Cheers,
John
Long time lurker, first time poster.
I rang VW finance tonight to arrange a voluntary termination of my PCP on my mk7 Golf GTD. I've paid over 50% so I can hand the car back and walk away, and I have been advised as long as the car is roadworthy I won't have to pay anything to cover stone chips or excess mileage.
I wasn't aware that this was possible when I took out the pcp, but a guy at VW told me about it when I rang for a settlement figure, and it's really worked in my favour this time - If I'd taken the car to the end of term and tried to hand it back at that point I would've owed about £1,200 for excess mileage and I'm sure they'd have had something to say about the road rash on the bonnet!
However, he did advise that from March 1st they would be charged for excess mileage on PCP voluntary terminations. Does anyone know if this is possible to enforce? I have been told that the right to hand back after 50% has been paid is actually a legal requirement of the type of finance. The wording of the contract is:
"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under the agreement. If you have already paid [at least half the total amount payable] plus any overdue instalments and have taken reasonable care of the goods , you will not have to pay any more"
Based on the above, is a charge excess mileage legally enforceable?
Cheers,
John
I would guess that it all depends upon just how much excess mileage has been covered. If you took a 10K PA on a 2 year deal, did 30K in 18 months and wanted to hand it back they would probably have something to say about it.
Whether they would allow you the total 20K or a proportional amount (equal to the amount of contract completed) of 15K before adding excess mileage charges should be something that is laid out in the Terms and Conditions of your particular agreement - if it is not then you should feel free to contest it.
Whether they would allow you the total 20K or a proportional amount (equal to the amount of contract completed) of 15K before adding excess mileage charges should be something that is laid out in the Terms and Conditions of your particular agreement - if it is not then you should feel free to contest it.
But excess mileage charges, of any amount, are not enforceable under VT conditions. That's the question the OP asked and although some finance companies are known to send you a bill anyway, it can just be ignored.
NB - Voluntary Termination is not for everyone, as it can leave a marker on your credit file. This is not a negative mark, but does indicate you have VT'd which may be used in the future to assess if they want to give you a PCP deal.
NB - Voluntary Termination is not for everyone, as it can leave a marker on your credit file. This is not a negative mark, but does indicate you have VT'd which may be used in the future to assess if they want to give you a PCP deal.
Jefferson Steelflex said:
NB - Voluntary Termination is not for everyone, as it can leave a marker on your credit file. This is not a negative mark, but does indicate you have VT'd which may be used in the future to assess if they want to give you a PCP deal.
Is this the case with VW, as I'm thinking of doing a VT. Not sure that I would if that's the case.Other half is about to terminate a 4 year old fiesta with £400 excess mileage to pay on Ford Finance.
It's too good to be true that you can just run a PCP car into the ground, pay half and walk away. She's something like 7000 miles over her contracted allowance 3 years into her deal.
Surely finance companies would come after the excess mileage?
It's too good to be true that you can just run a PCP car into the ground, pay half and walk away. She's something like 7000 miles over her contracted allowance 3 years into her deal.
Surely finance companies would come after the excess mileage?
Jefferson Steelflex said:
But excess mileage charges, of any amount, are not enforceable under VT conditions.
I did see a case on another forum where Peugeot Finance really pushed for the excess mileage charge, to the extend of issuing court proceedings. Everyone was encouraging the guy to resist, but he caved at that point and paid up. IIRC Peugeot's argument was that the mileage was part of 'reasonable condition'.
I'm not aware this point has ever been properly tested.
Indeed, even the car's condition is a grey area - the finance company's interpretation of 'reasonable' is probably different to everyone else's.
Sheepshanks said:
Indeed, even the car's condition is a grey area - the finance company's interpretation of 'reasonable' is probably different to everyone else's.
And I agree with this. If I loaned my car to a friend and said he could put 1,000 miles a month on it for 3 months as I wasn't using it, I'd be pissed off if I got it back after 2 months with 10,000 on it. "But it's still working so it's in reasonable condition." That just doesn't sit right with me. No matter how much you want to get one up on these big companies. It just seems snide and sly to me.Hello
I can confirm this is now true. I have a Skoda on PCP financed through VWFS, i contacted VWFS in December to ask about VTing the car.
I was told that the excess milegae would not apply. So i then ordered a new VW again through VWFS, finance agreed and due to collect in next two weeks. I called VWFS to arrange the VT today and was told " we changed the T and C's from February and we now charge the excess mileage.
Worked out i would owe in excess of £900.00. I told VWFS on the phone that if i would have known that at the time (december) i would not have ordered a new car. They told me i have three options;
1) after the car is picked up by British Car Auctions, they will notify VWFS of the mileage and then i will get an invoice, i can dispute this and will have an answer in 48 hours.
2) log a dispute now and VWFS will reply in up to 8 weeks. (not helpful when im due to collect new car in a week or so)
3) cancel the new agreement and lose my deposit and take the skoda to the end of the PCP.
I called the dealer to make them aware and the dealer had no knowledge that things had changed. Told me to call VWFS back and ask if they can advise what way the dispute "may" be resolved.
So i called VW back and the second person i spoke to said " we have the call log from your December call and can see you asked about VT'ing the car, we can then see you ordered a new VW so we will honour the agreement we told you over the phone, no excess mileage to pay"
Luckily they have the call log and grateful they have agreed to honour it. It is disappointing that they do not notify people when T and C's change.
When i ordered the Skoda it was the dealer who put through the mileage at 10000 a year, having originally wanted to put 5000 a year on the agreement.
The new car has 20000 a year so i should not be in the same position again.
Chris
I can confirm this is now true. I have a Skoda on PCP financed through VWFS, i contacted VWFS in December to ask about VTing the car.
I was told that the excess milegae would not apply. So i then ordered a new VW again through VWFS, finance agreed and due to collect in next two weeks. I called VWFS to arrange the VT today and was told " we changed the T and C's from February and we now charge the excess mileage.
Worked out i would owe in excess of £900.00. I told VWFS on the phone that if i would have known that at the time (december) i would not have ordered a new car. They told me i have three options;
1) after the car is picked up by British Car Auctions, they will notify VWFS of the mileage and then i will get an invoice, i can dispute this and will have an answer in 48 hours.
2) log a dispute now and VWFS will reply in up to 8 weeks. (not helpful when im due to collect new car in a week or so)
3) cancel the new agreement and lose my deposit and take the skoda to the end of the PCP.
I called the dealer to make them aware and the dealer had no knowledge that things had changed. Told me to call VWFS back and ask if they can advise what way the dispute "may" be resolved.
So i called VW back and the second person i spoke to said " we have the call log from your December call and can see you asked about VT'ing the car, we can then see you ordered a new VW so we will honour the agreement we told you over the phone, no excess mileage to pay"
Luckily they have the call log and grateful they have agreed to honour it. It is disappointing that they do not notify people when T and C's change.
When i ordered the Skoda it was the dealer who put through the mileage at 10000 a year, having originally wanted to put 5000 a year on the agreement.
The new car has 20000 a year so i should not be in the same position again.
Chris
xjay1337 said:
That's good news for you.
My Mrs is going well over her agreed milage on her Viva.
6k PA. She's had it since May and it's got nearly 9K on the clock
It's a 4 year deal. What's the best way to deal with this??
Any suggestions?My Mrs is going well over her agreed milage on her Viva.
6k PA. She's had it since May and it's got nearly 9K on the clock
It's a 4 year deal. What's the best way to deal with this??
I may be in a similar position took out a PCP on a Golf at 10,000 p/a an upcoming job change could see that double. My options are
- don't discuss with finance co. and pay excess mileage when I change cars (4 yr deal, will change at 3 max)
- Discuss with the finance co. and see what they come up with
- take a company car instead of the car allowance where I'll be paying £XXX in BIK tax each month but will not have excess mileage to pay at the end of the PCP
VT doesn't leave a marker on your credit history / file; it is a legal method of terminating a finance agreement therefore there is no reason at all why anything should appear on your file. The finance company you use to VT with may put a mark against your name but that is about it.
A couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
A couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
Exactly. Can they change the T & C's on existing agreements?
However I am amazed that the no excess mileage applied in the first place.
You would have thought VW Finance would have charged excess mileage in all situations.
What about other finance companies?
Anyone have experience of VT'ing and not having to pay excess mileage?
However I am amazed that the no excess mileage applied in the first place.
You would have thought VW Finance would have charged excess mileage in all situations.
What about other finance companies?
Anyone have experience of VT'ing and not having to pay excess mileage?
xjay1337 said:
That's good news for you.
My Mrs is going well over her agreed milage on her Viva.
6k PA. She's had it since May and it's got nearly 9K on the clock
It's a 4 year deal. What's the best way to deal with this??
Get a GAP policy and set fire to itMy Mrs is going well over her agreed milage on her Viva.
6k PA. She's had it since May and it's got nearly 9K on the clock
It's a 4 year deal. What's the best way to deal with this??
It's a Vauxhall, you were doomed from day 1
snorkel sucker said:
VT doesn't leave a marker on your credit history / file; it is a legal method of terminating a finance agreement therefore there is no reason at all why anything should appear on your file. The finance company you use to VT with may put a mark against your name but that is about it.
A couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
I think the contract will make reference to excess mileage. It's up to VWFS as to whether and how they enforce those charges, and it's this policy that appears to have changedA couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
NEED SOME HUGE ADVICE!
PCP'd my Golf GTD June last year and it is due for a service with VW. However, I'm over my mileage limit by 5K for the year (Limited to 10K) - But I've changed jobs and no longer accrue so many miles.
Does anybody know if the mileage review is yearly or at the end of my contract?
If its yearly I am screwed, if its at the end of the contract i should be fine!
My car is going in to VW for its service so thats why Im worried and don't want to be stung with a huge charge!
any help is appreciated !
PCP'd my Golf GTD June last year and it is due for a service with VW. However, I'm over my mileage limit by 5K for the year (Limited to 10K) - But I've changed jobs and no longer accrue so many miles.
Does anybody know if the mileage review is yearly or at the end of my contract?
If its yearly I am screwed, if its at the end of the contract i should be fine!
My car is going in to VW for its service so thats why Im worried and don't want to be stung with a huge charge!
any help is appreciated !
Chris.J116 said:
Hello
I can confirm this is now true. I have a Skoda on PCP financed through VWFS, i contacted VWFS in December to ask about VTing the car.
I was told that the excess milegae would not apply. So i then ordered a new VW again through VWFS, finance agreed and due to collect in next two weeks. I called VWFS to arrange the VT today and was told " we changed the T and C's from February and we now charge the excess mileage.
Worked out i would owe in excess of £900.00. I told VWFS on the phone that if i would have known that at the time (december) i would not have ordered a new car. They told me i have three options;
1) after the car is picked up by British Car Auctions, they will notify VWFS of the mileage and then i will get an invoice, i can dispute this and will have an answer in 48 hours.
2) log a dispute now and VWFS will reply in up to 8 weeks. (not helpful when im due to collect new car in a week or so)
3) cancel the new agreement and lose my deposit and take the skoda to the end of the PCP.
I called the dealer to make them aware and the dealer had no knowledge that things had changed. Told me to call VWFS back and ask if they can advise what way the dispute "may" be resolved.
So i called VW back and the second person i spoke to said " we have the call log from your December call and can see you asked about VT'ing the car, we can then see you ordered a new VW so we will honour the agreement we told you over the phone, no excess mileage to pay"
Luckily they have the call log and grateful they have agreed to honour it. It is disappointing that they do not notify people when T and C's change.
When i ordered the Skoda it was the dealer who put through the mileage at 10000 a year, having originally wanted to put 5000 a year on the agreement.
The new car has 20000 a year so i should not be in the same position again.
Chris
Just for the record, but if they try this with anyone else, tell them to go fI can confirm this is now true. I have a Skoda on PCP financed through VWFS, i contacted VWFS in December to ask about VTing the car.
I was told that the excess milegae would not apply. So i then ordered a new VW again through VWFS, finance agreed and due to collect in next two weeks. I called VWFS to arrange the VT today and was told " we changed the T and C's from February and we now charge the excess mileage.
Worked out i would owe in excess of £900.00. I told VWFS on the phone that if i would have known that at the time (december) i would not have ordered a new car. They told me i have three options;
1) after the car is picked up by British Car Auctions, they will notify VWFS of the mileage and then i will get an invoice, i can dispute this and will have an answer in 48 hours.
2) log a dispute now and VWFS will reply in up to 8 weeks. (not helpful when im due to collect new car in a week or so)
3) cancel the new agreement and lose my deposit and take the skoda to the end of the PCP.
I called the dealer to make them aware and the dealer had no knowledge that things had changed. Told me to call VWFS back and ask if they can advise what way the dispute "may" be resolved.
So i called VW back and the second person i spoke to said " we have the call log from your December call and can see you asked about VT'ing the car, we can then see you ordered a new VW so we will honour the agreement we told you over the phone, no excess mileage to pay"
Luckily they have the call log and grateful they have agreed to honour it. It is disappointing that they do not notify people when T and C's change.
When i ordered the Skoda it was the dealer who put through the mileage at 10000 a year, having originally wanted to put 5000 a year on the agreement.
The new car has 20000 a year so i should not be in the same position again.
Chris
k themselves.A VT terminates to contract. Its no longer a contract. Its an ex contract. Therefore they cannot enforce contract terms.
They're trying it on frankly. Also, DO NOT, EVER sign ANY paperwork from the finance company relating to a VT - it will invariably contain some weasel wording giving them the right to claim off you - use a template letter which you can easily google.
Keiranp8 said:
NEED SOME HUGE ADVICE!
PCP'd my Golf GTD June last year and it is due for a service with VW. However, I'm over my mileage limit by 5K for the year (Limited to 10K) - But I've changed jobs and no longer accrue so many miles.
Does anybody know if the mileage review is yearly or at the end of my contract?
If its yearly I am screwed, if its at the end of the contract i should be fine!
My car is going in to VW for its service so thats why Im worried and don't want to be stung with a huge charge!
any help is appreciated !
End of contract. Not one fPCP'd my Golf GTD June last year and it is due for a service with VW. However, I'm over my mileage limit by 5K for the year (Limited to 10K) - But I've changed jobs and no longer accrue so many miles.
Does anybody know if the mileage review is yearly or at the end of my contract?
If its yearly I am screwed, if its at the end of the contract i should be fine!
My car is going in to VW for its service so thats why Im worried and don't want to be stung with a huge charge!
any help is appreciated !
k will they give about the mileage in the meantime.Likewise, the excess mileage is only chargeable IF you hand the car back at the end of term. If you VT it, trade it in, sell it to the motor trade, sell it to A.N. Other or pay the balloon payment it is NOT chargeable.
Dimebars said:
snorkel sucker said:
VT doesn't leave a marker on your credit history / file; it is a legal method of terminating a finance agreement therefore there is no reason at all why anything should appear on your file. The finance company you use to VT with may put a mark against your name but that is about it.
A couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
I think the contract will make reference to excess mileage. It's up to VWFS as to whether and how they enforce those charges, and it's this policy that appears to have changedA couple of people have mentioned that T&Cs have changed, leading to excess miles now being charged. If I'd signed up to a finance agreement which made no reference to excess mileage charges then I'd be kicking back if VW were trying to retrospectively impose something.
Read your contract carefully as often, excess mileage charges are referenced in other sections to the clause regarding VT.
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