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Hi,
I am looking for advice regarding a VT excess mileage dispute we are currently having with GMAC.
We firstly initiated contact with the standard template letter that was on this website to VT our vehicle.
We received a response with charges totalling £943.48 for a combination of damages and excess mileage.
We did acknowledge that there were damages (caused by seatbelts inside each door) which we are prepared to pay for as we felt this may not fall under fair wear and tear. Therefore, we was happy to offer the sum of the damages - £249. The remaining damages caused by corrosion on the wheels and excess mileage however, we did not wish to pay for.
Below is the letter we sent in response, slightly manipulated but mainly using the template letters available.
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Dear Sir/Madam,
Re: Voluntary Termination
Agreement Number:
Vehicle Registration:
I am writing further to your letter dated 04/10/2018.
Please note that liability in relation to the alleged outstanding balance for excess mileage is denied.
You have suggested in your letter that I am liable to pay excess mileage under the terms of the agreement, however this is not correct. Section 100(1) confirms that liability is restricted to one half of the total price payable. The CCA defines ‘total price’ as “total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement”..
As you have already alluded to, the excess mileage is a contractual term of the agreement and therefore cannot be included as an amount which is owed. This position is further clarified under section 173 of the Act in that any contractual term which is inconsistent with any rights under the CCA and imposes additional liability, whether direct or indirect, shall be void and unenforceable.
Nonetheless, the excess mileage clause is based on the principle of ascertaining an estimated value of the car, taking into account its age and anticipated mileage at the end of the hire period. The hirer is then offered the option to purchase the vehicle at the suggested price. Mileage which exceeds the stipulated amount under the terms does not however, mean that the vehicle is not in a reasonable condition.
Please also note that liability in relation to the alleged outstanding balance for excessive damage to the vehicle is denied.
The vehicle was maintained in a reasonable condition throughout the period of the agreement and therefore such damage charges you are claiming would amount to fair wear and tear; the vehicle does not need to be returned to you in any better condition other than a reasonable one. Photographic evidence was taken prior to the vehicle being transferred to you which clearly shows that the vehicle was in a reasonable condition. The onus is on you to prove that the alleged damage caused was more than reasonable fair wear and tear.
Notwithstanding the above, I am prepared to pay a reasonable sum of £249 relating to the damage to the inside of the doors. I however, dispute the damage to the alloy wheels as this damage is due to corrosion, on all four alloy wheels and is the result of a manufacturing fault.
In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.
Please confirm by return that you agree to the payment above / this matter is now closed.
Yours faithfully,
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We today received a second response which has seen the charges for the damage "reduced" due to a "goodwill gesture" and they are happy to accept the offer of £249.
They have however, decided to pursue the charges of £474.48 for excess mileage - referring us to Consumer Credit Act 100 (4).
I have attached a picture of the section of the letters relating to this.
Any advice in how to reply to this letter would be greatly appreciate as we are unsure on how to respond.
Kind Regards,
Martin
I am looking for advice regarding a VT excess mileage dispute we are currently having with GMAC.
We firstly initiated contact with the standard template letter that was on this website to VT our vehicle.
We received a response with charges totalling £943.48 for a combination of damages and excess mileage.
We did acknowledge that there were damages (caused by seatbelts inside each door) which we are prepared to pay for as we felt this may not fall under fair wear and tear. Therefore, we was happy to offer the sum of the damages - £249. The remaining damages caused by corrosion on the wheels and excess mileage however, we did not wish to pay for.
Below is the letter we sent in response, slightly manipulated but mainly using the template letters available.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------
Dear Sir/Madam,
Re: Voluntary Termination
Agreement Number:
Vehicle Registration:
I am writing further to your letter dated 04/10/2018.
Please note that liability in relation to the alleged outstanding balance for excess mileage is denied.
You have suggested in your letter that I am liable to pay excess mileage under the terms of the agreement, however this is not correct. Section 100(1) confirms that liability is restricted to one half of the total price payable. The CCA defines ‘total price’ as “total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement”..
As you have already alluded to, the excess mileage is a contractual term of the agreement and therefore cannot be included as an amount which is owed. This position is further clarified under section 173 of the Act in that any contractual term which is inconsistent with any rights under the CCA and imposes additional liability, whether direct or indirect, shall be void and unenforceable.
Nonetheless, the excess mileage clause is based on the principle of ascertaining an estimated value of the car, taking into account its age and anticipated mileage at the end of the hire period. The hirer is then offered the option to purchase the vehicle at the suggested price. Mileage which exceeds the stipulated amount under the terms does not however, mean that the vehicle is not in a reasonable condition.
Please also note that liability in relation to the alleged outstanding balance for excessive damage to the vehicle is denied.
The vehicle was maintained in a reasonable condition throughout the period of the agreement and therefore such damage charges you are claiming would amount to fair wear and tear; the vehicle does not need to be returned to you in any better condition other than a reasonable one. Photographic evidence was taken prior to the vehicle being transferred to you which clearly shows that the vehicle was in a reasonable condition. The onus is on you to prove that the alleged damage caused was more than reasonable fair wear and tear.
Notwithstanding the above, I am prepared to pay a reasonable sum of £249 relating to the damage to the inside of the doors. I however, dispute the damage to the alloy wheels as this damage is due to corrosion, on all four alloy wheels and is the result of a manufacturing fault.
In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.
Please confirm by return that you agree to the payment above / this matter is now closed.
Yours faithfully,
------------------------------------------------------------------------------------------------------------------------------------------------------------
We today received a second response which has seen the charges for the damage "reduced" due to a "goodwill gesture" and they are happy to accept the offer of £249.
They have however, decided to pursue the charges of £474.48 for excess mileage - referring us to Consumer Credit Act 100 (4).
I have attached a picture of the section of the letters relating to this.
Any advice in how to reply to this letter would be greatly appreciate as we are unsure on how to respond.
Kind Regards,
Martin
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