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VT excess mileage

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  • VT excess mileage

    Hi,

    I have followed the guidance on here regarding the voluntary termination process.

    I have received this reply from Audi Finance, Please could someone look at this and advise if I will have to pay the charges? And also could it be translated into laymans terms for me please?! Thanks!



    "Thank you for contacting Audi Financial Services on 01 October 2019, I am sorry you have had cause to complain.

    Your Complaint

    You wish to dispute the excess mileage charge applied following the return of this vehicle as you feel you are not liable to pay under the terms of the Consumer Credit Act (CCA).

    My Investigation

    In raising your dispute, you are referring to section 100 of the Consumer Credit Act 1974 (the "Act") however, section 99(2) explicitly states that "Termination of an agreement under subsection 1 [the right to terminate] does not affect any liability under the agreement which has accrued before the termination".

    Clause 11 states that if you exceed the Maximum Total Mileage you will be liable to pay us the Excess Mileage Charge shown on page 1. That liability will accrue with each mile covered by the Vehicle in excess of those Mileages. You must discharge that liability by paying us on demand.

    Term 11.4 states that if this Agreement terminates early, we will reduce the Maximum Total Mileage in the proportion which the actual period of hire bears to the period of hire originally agreed. Any Excess Mileage Charge will be recalculated using that reduced Maximum Total Mileage.

    Clause 11 is worded to ensure that liability for the excess mileage occurs prior to termination and therefore you remain fully liable for any excess mileage.

    My Decision

    In light of the above, your dispute has not been upheld. "

    I really appreciate any advice!!

    Thanks

    Tags: None

  • #2
    How many miles over the agreement are you and what's the charge?

    My understanding of their reply to you is.

    You agreed the contract for the car for x ( for example 4) number of years with a total mileage of (for example 40000 miles total).

    If you end the contract early (for example after 2 years) they will look at the mileage done and pro rata the total mileage ( in example above 20000 miles). Any miles over the pro rata rate will be charged for .




    Comment


    • #3
      Thanks!!

      Thats what I was afraid of!
      Ive gone over by quite abit and only terminated a couple of months early, the charges are quite high!

      Thanks for your reply!

      Comment

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