New member with a question and needing help and advice

[Gips]

Hi, was recommended to join this forum and try and gain a little advice and knowledge
My partner has a pcp deal that she is planning on on terminating, (we have a new car between us now the last one too small)
shes 3.5 years into a 4 year pcp so I’m told can do a vt, I’m hearing conflicting stories about whether she has to pay up her excess mileage
she agreed to a 5000per annum and has exceeded the amount a fair bit due to changing jobs
think the total she would be looking at if she has to pay is 900 pounds
does she have to pay this ?
I would be very grateful if I could get some legal advice on the matter
thanks in advance

[R0b]

Evening,

Who is the finance company? I would suggest your starting point is to have a read through the following two links, which should give you enough information to answer your questions and make an informed decision.

A Guide to Voluntary Termination

Mercedes VT Excess Mileage - Defended Claim and Won

Once you have had time to digest the above, you will understand that the choice is entirely up to your partner as to whether she runs the risk. Mercedes have been known to issue some claims for excess mileage as above, though since that case was won I am not aware of any more coming up. BMW have a habit of recording adverse markers on your credit file if you don't pay outstanding charges and Barclays Finance appear to be going down the same path (which I would argue is a breach of data protection and actionable through the courts whether she wants to pursue that avenue is her choice and risk).

As she is 3.5 years into the agreement I would suggest that either before she decides to VT or at the latest before the car is handed over, to get some valuations carried out by some dealerships (small and/or large) as well as free online valuations to see the worth of the car.

The reason why I say that is because any loss to the finance company would be, as a maximum, the total amount payable under the agreement. So if the total instalments paid plus the value of the car is deducted from the total amount payable leaving a smaller sum i.e. £550 (or in equity in some cases) then you can argue that their loss overall is the smaller sum and not the costs of excess mileage because had the contract fully run its course, they would have been paid no more than the total amount payable under the agreement.

I should caveat the above by saying that if it were me, my view would be to resist paying the £900 but in doing so there are potential risks that the finance company may apply adverse markers on the credit file or threaten to take your partner to court. As a guideline, a good 80% of the issues I have seen on this forum are usually smoke and mirrors from finance companies.

Your partner has to decide if it is worth defending.

Hope that helps.