VT excess mileage

[Rvpeary]

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

[jeffster247]

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 .

[Rvpeary]

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!

[Clifford88]

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

Hi - did you end up paying these charges?

[Tom927]

Can someone please explain why they pro-rata the mileage when someone Voluntary Terminates? The wording in my contract is as follows:

If the vehicle covers more than:
- the maximum annual mileage of 10000 miles in any succeeding period of 12 months starting
from the date of the agreement; and/or
- the maximum total mileage of 40833 miles under the credit agreement; you must pay us on
demand an excess mileage charge of 9.6p (incl. VAT) per mile in excess of those mileages.

In interpret that first point as, if you were to terminate at any point between months 36 and 48(final 12 month period) you would be only liable for mileage over 40000, not pro-rata? I.e. within the first 12 months anything over 10000, within 24 months anything over 20000, within 36 months anything over 30000, within 48 months anything over 40000?

Or am I just completely misinterpreting that wording?