Tweet
I bought a vehicle on a four year PCP deal and am approaching the end of that period. I’ve made all the repayments (so well over the 50% figure) and am trying to work out the most sensible option.
My original plan was to trade in the vehicle and when I bought it, the sales team made it clear that the mileage would be irrelevant at the end of the period as they’d use the minimum guaranteed value as the trade-in value on a new contract. This is no longer a practical proposition.
I appear to have two options:
The vehicle is in good condition for the mileage (64k) and the final payment is a fair estimate of the book value. My concern is that, rather than take the vehicle back and accept this, the finance company will pursue the mileage charges as well.
As far as I am aware, VT would not affect my credit rating but I’m unclear on whether my (potential) refusal to pay excess mileage charges could do?
Also, if I do go down the route of agreeing an inspection to return the vehicle without paying the final payment but am unhappy with the engineer’s opinion of the vehicle, does anybody have any experience of what happens next?
Any advice or comments gratefully received.
My original plan was to trade in the vehicle and when I bought it, the sales team made it clear that the mileage would be irrelevant at the end of the period as they’d use the minimum guaranteed value as the trade-in value on a new contract. This is no longer a practical proposition.
I appear to have two options:
- Pay the balloon payment and then sell the vehicle privately (or trade-in)
- I could voluntarily terminate (VT) before the end of the term or wait for the end and pay the excess mileage charges (I am aware of lots of opinions on the morality of refusing to pay this as finance companies have, best I can tell, never pursued this through the courts). There has been talk of an upcoming court case but I suspect that decision is still some way off as to whether a flat ‘penalty charge per mile’ is a fair reflection on the actual value of a vehicle
The vehicle is in good condition for the mileage (64k) and the final payment is a fair estimate of the book value. My concern is that, rather than take the vehicle back and accept this, the finance company will pursue the mileage charges as well.
As far as I am aware, VT would not affect my credit rating but I’m unclear on whether my (potential) refusal to pay excess mileage charges could do?
Also, if I do go down the route of agreeing an inspection to return the vehicle without paying the final payment but am unhappy with the engineer’s opinion of the vehicle, does anybody have any experience of what happens next?
Any advice or comments gratefully received.
