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
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