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I searched and could find some similar issues but nothing entirely definitive, so apologies if it has been answered but I haven't been able to find an answer.
Here is the situation:-
I am in the process of VT'ing a Peugeot to Peugeot Financial Services. The original lease states
"Annual Mileage 6,000, excess mileage 5p. If the total mileage exceeds the agreed basic mileage by 30% the rate for each excess mileage thereafter will be twice the above rate".
Under charges it states various elements and "Excess mileage at a rate of 5p per mile recorded above the AllowedAnnual Mileage" (i.e. no mention of the elevated rate)
Under termination it states "If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay any more".
The vehicle has covered 20,000 miles. I accept the principle of the excess mileage payment. [Though I would be interested in any judgement which may have come down on it being a penalty].
Under this I would expect to be charged £100 excess mileage, i.e. 2,000 @ 5p.
However, the VT agreement received states "Also if your contract included an agreed annual mileage and you've gone over you pro-rate mileage, we'll charge you for this at the rate set out in the contract".
Since the signed agreement make no mention of pro-rating can this be done?
The agreement is for 37 months and there are 8 more payments. If pro-rating then I would calculate the excess mileage as:-
Allowed mileage = 18,500 (not 18,000 since it is a 37 month agreement with 6k annual) x 29 / 37 = 14,500.
Excess = 4,350 @ 5p + 1,150 @ 10p = £332.50
Obviously I would prefer to be paying £100; do I have a sound basis to argue on or is it well established that total mileage can be reduced pro-rata for the actual time spent before VT.
Thanks.
Here is the situation:-
I am in the process of VT'ing a Peugeot to Peugeot Financial Services. The original lease states
"Annual Mileage 6,000, excess mileage 5p. If the total mileage exceeds the agreed basic mileage by 30% the rate for each excess mileage thereafter will be twice the above rate".
Under charges it states various elements and "Excess mileage at a rate of 5p per mile recorded above the AllowedAnnual Mileage" (i.e. no mention of the elevated rate)
Under termination it states "If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay any more".
The vehicle has covered 20,000 miles. I accept the principle of the excess mileage payment. [Though I would be interested in any judgement which may have come down on it being a penalty].
Under this I would expect to be charged £100 excess mileage, i.e. 2,000 @ 5p.
However, the VT agreement received states "Also if your contract included an agreed annual mileage and you've gone over you pro-rate mileage, we'll charge you for this at the rate set out in the contract".
Since the signed agreement make no mention of pro-rating can this be done?
The agreement is for 37 months and there are 8 more payments. If pro-rating then I would calculate the excess mileage as:-
Allowed mileage = 18,500 (not 18,000 since it is a 37 month agreement with 6k annual) x 29 / 37 = 14,500.
Excess = 4,350 @ 5p + 1,150 @ 10p = £332.50
Obviously I would prefer to be paying £100; do I have a sound basis to argue on or is it well established that total mileage can be reduced pro-rata for the actual time spent before VT.
Thanks.
