voluntary termination

[ianw]

Hi, looking for some advice re voluntary termination of of car bought on PCP contract.
My son is halfway through his contract but he has amassed a lot of mileage, due to work commitments. As a result he would be looking at high excess penalties that would cost him far more than the car is worth.
If he were to return car would he be liable for excess no matter the amount of mileage.

[R0b]

Re: voluntary termination

From what the law says, no he shouldn't pay excess mileage as they cannot claim for any breaches, but then again it depends on how much excess mileage we are talking about. They would only be able to recoup anything back by arguing that the car is not in a reasonable condition and that may be difficult if as a result the car requires any major repairs due to the excessive mileage. Not sure how well their argument will float but you can bet they will try as hard as they can and possibly threaten legal action.

[ianw]

Re: voluntary termination

From what the law says, no he shouldn't pay excess mileage as they cannot claim for any breaches, but then again it depends on how much excess mileage we are talking about. They would only be able to recoup anything back by arguing that the car is not in a reasonable condition and that may be difficult if as a result the car requires any major repairs due to the excessive mileage. Not sure how well their argument will float but you can bet they will try as hard as they can and possibly threaten legal action.

His excess mileage is very high and he is less than halfway through his contract. Looking at his contract they state that excess has to be paid in the event of early termination.

[R0b]

Re: voluntary termination

What is the stated mileage in the contract and how much over has he done?

Personally I would argue that they cannot recover if the agreement is VT'd and the only way to find out is by arguing it in court. it might be wise to VT if he's excessively over than continuing to go over and take the mick but choice is his.

The law does state that where a person VTs an agreement the lender cannot recover excess sums where the debtor has breach a term of the agreement. So whilst they cannot contractually charge excess mileage by law, they would have to argue that the excess mileage has put the car in an unreasonable condition, which may be difficult to argue as it only need to be in a reasonable one i.e roadworthy