Audi VT - will it affect other Audi PCP?

[FatherOf3]

Good morning All,

I’ve had a good old look through the threads available on this wonderful site but nothing quite seems to match my situation so I thought I’d ask for advice...

We’ve recently become a 3 child family (twins) and as a result a change of car was forced on us. We found a great deal on a bigger Audi and went ahead with it - the only bad point being that they wouldn’t accept our current vehicle - also an Audi - in PX. So, we’re left with this to dispose with.

Cutting a long story as short as possible, the cheapest way to do this is by VT-ing it. However there are some aggravating factors that I wanted advice on before I start the ball rolling.

1. We currently hold two PCP agreements with VWFS; the new car and the old one that we wish to VT. Will VT-ing the older car have a detrimental impact on the new finance agreement (can VWFS terminate the new agreement for example if things get acrimonious between Us and Them?)

2. The vehicle is over mileage by roughly 10k. I see from the numerous threads that finance companies pursue payment for this fairly aggressively. How likely is it that VWFS will pursue court proceedings against Us in the event that we refute an excess mileage charge citing the relevant legislation. I should clarify that we are right plum in the middle of a very busy time with new born twins & a three year old. Therefore my ability to devote sufficient time to it will be compromised.

3. Lastly, in order to VT the car I need to make up four additional payments to satisfy the 50% of loan rule. Will any calculation of excess mileage be pro-rata’d to a date four months into the future up to which the vehicle is paid for or is it calculated from the instant that the car is VT’d? Hope that makes sense!

I’d be very interested to hear any views - we’re all poised and ready to go.

Thanks in advance!

[R0b]

Hi,

Answers to your questions below in the same order.

1. They're not mutually exclusive and operate separately so I can't see how the new PCP will be affected unless you (or VWFS) breach the contract terms.

2. Nobody can guarantee but if court action is what you want to avoid I suggest you go down the formal complaints route, first with VWFS and then the Financial Ombudsman. There have been some recent success with the FOS and VWFS (see here).

3. First of all, you do not need to have paid 50% before you can VT. That is a common mistake both consumers and lenders make so I want to make it clear that you can terminate at any time, but you will be liable to pay the remaining balance either in full within a short window i.e. 30 days or by instalments if you can't afford to do that. As for excess mileage, it will likely be pro-rated from the date of termination.