Voluntary Terminate PCP with RCI Finance

[Simon102]

HI,
I have a 4 year PCP with RCI Finance which I have 2 more payments to make before I can VT (Sept 2017). I have excess mileage of around 25000 which would currently equate to about £2.5k. My contract mileage is 5k per year. This is my second PCP with them and the first one was fine even though I did double the mileage (Same 5k allowance), that deal didn't land me in negative equity. They knew that I did at least 10k miles per year This new deal I am about £2.5 k negative equity at the moment. When I went in to the car dealer to discuss, they said they wouldn't sell me this deal now, so their selling practices have changed but are:
they couldn't offer me a solution.
The one thing I think has made a difference this time is the APR which is 10.39% which I didn't see at the time they showed me the figures but I did see later on when I signed to pick up the car. Car = £12,700. Interest = £3900.
My Options:
1) Carry on paying and buy the car for £6300 in July (currently worth about £5500 due 56k Mileage.
2) Hand the car back at the end and pay the negative equity of about £2.5k
3) VT in a few months time without paying the excess mileage charges.

The customer written summary does state: when the agreement ends (for whatever reason) you will be responsible for any excess mileage charges.

Can this be enforced?

There is no Voluntary Termination section that I can see, but i think i have to phone them if I want to do that.

Last year there was a mis-sold PCP kicking off but that's gone all quiet now. I was mis-sold this as they said they wouldn't sell me this again with that mileage allowance.....

Many Thanks for any help.

Simon

[xs2man]

Re: Voluntary Terminate PCP with RCI Finance

Option 2 wouldn't require you to pay anything more, with respect to negative equity. A PCP deal is usually made up with a GFMV or Guaranteed Future Minimum Value. So it is not the negative equity you have to pay. You will need to pay the excess mileage though, which will presumably be even more at the end of the term than it is now.

VT-ing the car in July should mean you don't have to pay the excess mileage, but you may have to take RCI to court if they put a marker against your credit file, and you want it removed. My experience is that the finance company wont take YOU to court over it, but just let the marker ruin your file until, presumably, you pay up. And even if you do give in, there is no requirement for them to remove the marker.

You can VT the car whenever you want though, but you will have to have paid back at least 50% of the total amount payable (which will be defined in your contract), so roughly £8300, according to your figures, brings you to 50%. You do not need to wait until the payments have reached that 50% mark, but then you are essentially paying for the "rental" of the car up until that point anyway.

If the car really is worth the £5500 you say, and you can buy it in July for £6300, this may be the easiest way out of the car, with minimal fuss, and not entirely unreasonable cost. £800 to cover 25,000 miles more than you paid for isn't too bad (a little over 3p per mile). Of course, that depends on whether the car is truly worth £5500 and someone will actually buy it for that. Still, £800 isn't an insignificant sum of money, so it depends on you disposition regarding whether you would be willing to risk your credit score while you fight them all the way to court over it.

I'm sure R0b will be on soon enough with some proper advice, I'm just passing on the info I have managed to accumulate through my experiences on here.

[jackson030207]

Re: Voluntary Terminate PCP with RCI Finance

Hi
I wondered if I could piggy back on this thread. I have VT with RCI finance and they are chasing me for excess mileage charges worked out on a pro rata basis (approx. £1100 +VAT). I have argued with them that the terms of the contract don't apply as it was a VT however they are holding me against a piece of paper I signed to start the VT process. It says something along the lines of 'I agree to pay any excess mileage charges invoiced to me'. Unfortunately I signed it and I'm wondering if that is enough for them to pursue me with. It doesn't say on that piece of paper about the charges being worked out on a pro rata basis, is this enough for me to be able to say I will pay anything over the total mileage allowance (10k per year for 4 years)

Hopefully someone can shed some light on this as I'm not sure how far to take it but really don't have the money to pay!
Thanks for reading

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Hi Jackson,
I'm due to terminate in a month or so and don't really want to sign any paperwork if I don't have to.
I'll let you know how I get on.
Simon

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Thanks,
If I continue with the car till next July, the mileage is likely to be 75K so I think would be difficult to sell. I will be going down the VT route in a month and a half and try and get out of paying the excess mileage. From what I have seen on this site, don't sign anything......

Thanks
Simon

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Hi Jackson,
How did you VT with RCI Finance and at what point did you have to sign? Did they collect the car from your house?

Thanks
Simon

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Hi All,
I have sent RCI Finance my termination letter, and they have sent me a pack to sign, Their letter says this:

I am exercising my right to voluntary terminate the above Agreement. I understand how any liability amount will becalculated and the process for returning the car has been fully explained to me. I agree that I will settle any charges forcollection of the vehicle (where this option has been ticked below), damage, missing items and/or excess mileage chargesas invoiced by you.The current mileage on the vehicle is –(please complete this field – failure to complete this may result in the VT process being delayed).
I don't want to sign this.
Do I just reply to their email? Not sure what to say.

any help appreciated.
Thanks
Simon

[R0b]

Re: Voluntary Terminate PCP with RCI Finance

Just reply, and say there is not need to complete this information and will no doubt be carried on when the car is inspected, nor is it a legal requirement for you to sign anything as the agreement is now terminated.

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

I don't think its quite terminated, does that matter? I asked to be terminated from 1st Sep as my last payment for the 50% will be made end of August.

[R0b]

Re: Voluntary Terminate PCP with RCI Finance

Ah I see, apologies. For future reference you don't need to wait until you have paid 50% you can terminate early and send them a cheque for the difference - though you might have your reasons why.

Either way, no it is not a legal requirement to complete any information, that shouldn't prevent them from making arrangements as they are already on notice that the agreement is to terminate.

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Thanks Rob,
I emailed RCI to say there is no need to sign your document on 25/08 and to arrange collection. To date, they have not responded.
Their document says this:
We must make you aware that the vehicle remains your responsibility until it has been collected. This can only take place after we receive the fully completed return slip. Please be aware that once we have received the return slip, it may take up to two weeks to arrange either the collection of your vehicle.

Any thoughts how I can progress?
Thanks
Simon

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Hi Rob,
Progress Update - Didn't sign the VT Pack that they sent me. Car collection company phoned me on Friday and they are collecting the car this Thursday. No doubt they will ask me to sign something.......
So Rob - Can they refuse to take the car away if I don't sign their paperwork?
Thanks
Simon

[R0b]

Re: Voluntary Terminate PCP with RCI Finance

The agent can refuse if he is so instructed by RCI, in which case you can say that is fine and inform the agent that if he refused to take the car away then you will cancel insurance and tax (if not in private drive) and the responsibility will rest with RCI.

If that doesn't make him move it then I'd suggest you send the template letter headed "noticeof intention to sell goods" that should get them movIng

[Samtaylor1986]

Re: Voluntary Terminate PCP with RCI Finance

Hi all. I am currently in the VT process with Renault and it has been horrendous

they told me over the phone that I had to sign the form in the pack before they would proceed with the VT.

only after doing so did I research and find out I didn't have to do this. Stupidly thinking they would be honest with me.

Anyway the car was picked up and I disputed all the damage charges picked up. They still took the car away.

SIX weeks later I have been sent an invoice for charges and excess mileage stating I had 14 days to pay.

I am now disputing this. I have emailed them daily and written to them. Their response is extremely poor. I will not speak to them over the phone as they lie (when I contacted them to complain about being made to sign the original slip they said they had never told me that and the pack is a guide only?! Blatant liars!)

anyway finally had a response today and they have already removed some charges 'as goodwill' however I am disputing further......please just be warned you do your research first and keep track of emails/letters etc they will try and shaft you!

[Simon102]

Re: Voluntary Terminate PCP with RCI Finance

Latest Update
They collected the car about 4 weeks ago. I didn't sign anything about the excess mileage. Only thing my wife signed (as I was not there) was the disputing damage document for £130 but not bothered about that. No mention of excess mileage on that document.
Yesterday, received invoice for £3000 for the excess mileage including the £130 damage. Not even any calculations on this letter to say how they came up with that figure. there is also an 'Other' for £27.12 - No idea what that is...... Cheeky Ba******
I will be sending the template letter number 1 disputing the excess mileage by recorded delivery. I will keep you posted.
Question - do we know if anyone has been taken to court yet that hasn't signed the agreeing to pay excess mileage VT document or any cases where the finance company have given up?
Thanks
Simon