Tweet
Hello all,
I just wanted to clear a few things up.
I took out a PCP deal in August 2014 with Renault, RCI Finance. At the time, the salesman put me on a very low PCP allowance of 6000 miles per year. The salesman told me that if i was to hand the car back and get something new at the end of the term, this would never come into play. I also have, in writing, that this was the case 'unless there is negative equity' (and at this point i had no idea what that meant).
Anyway, long story short, 6000 was no where near enough for me, and was soon finding I was doing around 18-20k miles a year. After Renault called me to discuss trading in, it put a worry in my mind about what to do with the car, as the salesman said they could 'absorb the negative equity' which, upon doing a lot of research, seems like the worst idea. Since then, a few months later, i've managed to get an internship abroad which starts Jan next year for 3 years. I have no use for the vehicle, I have nowhere to store the vehicle, and realistically, I wont be able to afford to keep a car i'm not using. So i've been looking into voluntary terminating the PCP deal, as per my contract.
My agreement states:
You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £xxxx.xx. 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.
However, it also states:
Annual mileage allowance: 6000 miles. Excess Mileage charge: £0.08 per mile.
You must not exceed the annual mileage allowance. For each mile driven in excess of the annual mileage allowance, you will be required to pay the excess mileage charge. This will be charged on expiry, or the earlier ending of this agreement, or where you request us to act as your agent to sell the goods (see paragraph 10 of the terms).
I've read all sorts about people getting bills through and RCI threatening legal proceedings etc. The car is in good condition, has full service history, minor scuff to one bumped and a few paint chips here and there, but considering the miles, very good inside and out, so I really dont think its a case that i've not looked after the vehicle. My concern is that on one hand they're stating i have nothing more to pay if there has been reasonable care taken, but on the other, i'll pay the excess mileage charge, so i am not sure what takes priority over the other. I've also read that in the consumer rights act, it states about not paying these charges too, so any help would be amazing for someone that is really really clueless.
I just wanted to clear a few things up.
I took out a PCP deal in August 2014 with Renault, RCI Finance. At the time, the salesman put me on a very low PCP allowance of 6000 miles per year. The salesman told me that if i was to hand the car back and get something new at the end of the term, this would never come into play. I also have, in writing, that this was the case 'unless there is negative equity' (and at this point i had no idea what that meant).
Anyway, long story short, 6000 was no where near enough for me, and was soon finding I was doing around 18-20k miles a year. After Renault called me to discuss trading in, it put a worry in my mind about what to do with the car, as the salesman said they could 'absorb the negative equity' which, upon doing a lot of research, seems like the worst idea. Since then, a few months later, i've managed to get an internship abroad which starts Jan next year for 3 years. I have no use for the vehicle, I have nowhere to store the vehicle, and realistically, I wont be able to afford to keep a car i'm not using. So i've been looking into voluntary terminating the PCP deal, as per my contract.
My agreement states:
You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £xxxx.xx. 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.
However, it also states:
Annual mileage allowance: 6000 miles. Excess Mileage charge: £0.08 per mile.
You must not exceed the annual mileage allowance. For each mile driven in excess of the annual mileage allowance, you will be required to pay the excess mileage charge. This will be charged on expiry, or the earlier ending of this agreement, or where you request us to act as your agent to sell the goods (see paragraph 10 of the terms).
I've read all sorts about people getting bills through and RCI threatening legal proceedings etc. The car is in good condition, has full service history, minor scuff to one bumped and a few paint chips here and there, but considering the miles, very good inside and out, so I really dont think its a case that i've not looked after the vehicle. My concern is that on one hand they're stating i have nothing more to pay if there has been reasonable care taken, but on the other, i'll pay the excess mileage charge, so i am not sure what takes priority over the other. I've also read that in the consumer rights act, it states about not paying these charges too, so any help would be amazing for someone that is really really clueless.
Comment