Misled PCP / excess mileage charges

[bazlaf]

Hello all, first time post, looking for a bit of advice. There are many scenarios similar and I've read various articles on it, just hoping for a little advice from anyone, R0b apologies for tagging but you're quite the expert from what I've read!

I took out a car in Jan 16 on a 4 year PCP in 10,000 p/y deal and explained to the salesman at the time that my mileage could fluctuate due to my job, and was told if I go over not to worry about it if I was taking another vehicle with that dealer. Shortly after taking the vehicle my mileage shot up due to taking on a different role at work. Fast forward 2 1/2 years, I called to discuss changing vehicle due to the increased mileage, was sent a settlement figure in the post and that was it.

My partner and I are expecting our first child in July, I called again to discuss an upgrade and was told my best option was to voluntary terminate and pay the excess mileage charges, likely to be £1800-2000. I disputed this based on what I was told at the point of sale. They've essentially referred me to the finance company, who have referred me back to the dealer. It's frustrating the life out of me that nobody wants to actually deal with the issue, so upon doing a bit of research I've found there's some dubiety regarding the lawfulness of the excess mileage charges, plenty of useful info, especially from this site, but does anyone have any real experience of this? It's not my preferred outcome, I'm happy to go through with what I had agreed with the dealer out of decency, but I'd like to know I have another option if they place hardball.

Long story short, if I end up VTing and they pursue me for the charges, what can I expect? Also, is it my best course of action?

Any help would be much appreciated.

Cheers!

[R0b]

Hello,

You are going to struggle if you dont have any evidence of being misled. Someone who was present there to witness what was said is of help but the reality is that you should have got it in writing as proof.

If your mileage shot up then did you reasonably ask to increase the annual mileage based on that? if not, why not?

Anyway, leaving that aside the general rule I take is excess mileage is a contractual term which is limited upon complying with Section 100 I.e. paying one half of the total price. Lenders will also argue that they shouldnt be left out of pocket and it falls under the reasonable care category (I disagree).

If the finance co. Is BMW there is form for the to record excess mileage charges as being late payments so bear that in mind. Some people have paid up and they refused to remove the markers so do be careful before jumping in if it is BMW.

The finance co. Is liable for statements of the dealer acting on their behalf as an agent so shouldnt be robbing you off to the dealer. You can make a complaint to the finance co. And then on to the Financial Ombudsman but there is evidence they wont accept verbal arrangements because there isnt any written evidence to corroborate your story.

So, back to same old story on this forum. Pay up or defend it.

[bazlaf]

Hi Rob,

Thanks for your response.

The advice I have had from Citizens Advice etc essentially points to the same thing, there was nothing written and although my partner was there when I signed for the car I'm not sure if she was aware of the conversation and whether that would even stand up given her being less than impartial.

In hindsight I should have called them sooner, it never really occurred to me that they could change the deal at that point, and given the relaxed approach they seemed to have to the mileage at the time I didn't think too much of it. I did call them almost a year ago but that was quite far into the agreement, but I received no real information from that point other than a settlement figure. Also, when I say the mileage "shot up", it was more gradual increase than my poor choice of expression suggested.

I'm not overly keen on defending myself in this situation as I'm aware it could seem like I'm trying to exploit a loophole or cop out of it, but I've proceeded on the basis that there wasn't anything to worry about re the mileage, and I'm happy to take another Honda if they're happy to waive the charges, but I feel I'm being backed into a corner and will absolutely defend it if required.

I agree with your reading of the "reasonable care" aspect of it, and there are a couple of dings and scrapes on the alloys that I'm going to repair prior to the VT, and the full service history and MOT should hopefully defend the argument that I have taken reasonable care of it.

I'll speak to the dealer principle today and see if he can help, failing that I'll open a joint dialogue between the relevant customer complaints departments at Honda Finance and the dealership, I'm willing to defend the case if it comes to it but, and this may seem to simplistic, but to me it would seem like a fairly sensible commercial decision from Honda to meet me in the middle on this with a view to securing another PCP/HP deal going forward, and as much as I'd rather not stick with them given their attitudes to this, I would do so to keep the fuss to a minimum.

I'm also prepared to go to the Ombudsman as well.

Thanks again Rob, your advice is very much appreciated.

Cheers