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Hi, After voluntary terminating my vehicle four months prior to the halfway point of the financial agreement, i returned the vehicle after paying the remaining four payments in one lump sum. The vehicle was collected as excellent condition and no charges in regard to the paintwork/condition etc. The vehicle was returned BELOW my contractural mileage. However, this is where it gets interesting, as i received this from the finance company below.
Can i say, im reading into this that they are trying to charge me for 846 miles which has not been driven, only assuming i would drive this.
Stupidly, if i had kept the car on my driveway for the four months, this issue would not be an issue. I know its only £63, but there is a principle here.
Any advice how to proceed would be appreciated. (BTW, my new vehicle is a new PCP with the SAME finance company!)
From the finance company...
The vehicle condition report which recorded any damage on the vehicle and also the mileage at the time of the collection has now been reviewed and an invoice has been raised for mileage outside the contractual allowance.
Your maximum total mileage was set out on the front of your agreement, together with the pence per mile charge payable for each mile in excess of this. As you terminated your contract before the end date, the excess mileage allowance was reduced on a pro-rata basis.
Please note that the excess mileage charge is a pre-termination liability and is therefore payable under Section 99 (2) of the Consumer Credit Act which states that any pre-termination liability is not affected by termination under the voluntary termination provisions.
Excess Mileage Charges...
Can i say, im reading into this that they are trying to charge me for 846 miles which has not been driven, only assuming i would drive this.
Stupidly, if i had kept the car on my driveway for the four months, this issue would not be an issue. I know its only £63, but there is a principle here.
Any advice how to proceed would be appreciated. (BTW, my new vehicle is a new PCP with the SAME finance company!)
From the finance company...
The vehicle condition report which recorded any damage on the vehicle and also the mileage at the time of the collection has now been reviewed and an invoice has been raised for mileage outside the contractual allowance.
Your maximum total mileage was set out on the front of your agreement, together with the pence per mile charge payable for each mile in excess of this. As you terminated your contract before the end date, the excess mileage allowance was reduced on a pro-rata basis.
Please note that the excess mileage charge is a pre-termination liability and is therefore payable under Section 99 (2) of the Consumer Credit Act which states that any pre-termination liability is not affected by termination under the voluntary termination provisions.
Excess Mileage Charges...
| Agreement No. | ||||
| Agreement Start Date | 10/01/2018 | |||
| Original Contract Term | 48 | |||
| Original Contract Mileage | 40000 | |||
| Annual Mileage | 10000 | |||
| Vehicle Return Date | 14/10/2020 | |||
| Contract Months Completed | 34 | |||
| Contracted Mileage for Completed Term | 28333 | |||
| Recorded Mileage | 81487 | |||
| Relief Mileage | 0 | |||
| Adjustment Mileage | 0 | |||
| Initial Mileage | 52308 | |||
| Speedo changes | 0 | |||
| Excess Mileage | 846 | |||
| Rate A = rate for the first99999 Excess Miles | ||||
| Rate B = rate for the nex®9999 Excess Miles | ||||
| Rate C = rate for the nex99999 Excess Miles | ||||
| Rate D = Rate for Excess Over and Above Rate C | ||||
| Vehicle Finance Excess Mileage pence per mile | Rate A | 7.49 | ||
| Maintenance Excess Mileage pence per mile | Rate A | 0.00 | ||
| Vehicle Finance Excess Mileage pence per mile | Rate B | 0.00 | ||
| Maintenance Excess Mileage pence per mile | Rate B | 0.00 | ||
| Vehicle Finance Excess Mileage pence per mile | Rate C | 0.00 | ||
| Maintenance Excess Mileage pence per mile | Rate C | 0.00 | ||
| Vehicle Finance Excess Mileage pence per mile | Rate D | 0.00 | ||
| Maintenance Excess Mileage pence per mile | Rate D | 0.00 | ||
| Vehicle Finance Excess Mileage Charge | Rate A | £ | 63.37 | |
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