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Hi,
I am currently looking into Voluntary Termination of my car finance and have a few questions.
I purchased the car based on an annual milage of 8000 miles per year with charge of 9.7p for excess milage.
I have had the car for 44 months and reached a milage of 59k (Due to a few changes in my life; work hobbies etc. This was a lot higher than expected!!)
This means I am currently 30000 miles over my agreed annual millage, equating to approximately £3000 in excess milage charges.
I have read in a number of places (including this forum) that excess milage doesn't matter when you voluntary terminate a car finance.
However! I have read my contract this morning and it has this small statement;
'you can terminate this agreement at anytime before our final repayment falls due by giving written notice. you all have to return the vehicle and pay (i) any arrears and any other sums which have become payable under the agreement before the termination (including excess mileage charge) plus (ii) the amount (if any) by which one-half of the total amount payable exceeds the aggregate of the advance payment and repayments you have paid, plus (iii) if you do not return the vehicle in good repair and condition, the sum required to compensate us for that. This will be your maximum liability if you comply with these requirments'
Because its got this statement regarding excess milage in the termination section of the contract, am I legally bound to pay this charge?
Thanks in advance for your help
Regards
Wayne
I am currently looking into Voluntary Termination of my car finance and have a few questions.
I purchased the car based on an annual milage of 8000 miles per year with charge of 9.7p for excess milage.
I have had the car for 44 months and reached a milage of 59k (Due to a few changes in my life; work hobbies etc. This was a lot higher than expected!!)
This means I am currently 30000 miles over my agreed annual millage, equating to approximately £3000 in excess milage charges.
I have read in a number of places (including this forum) that excess milage doesn't matter when you voluntary terminate a car finance.
However! I have read my contract this morning and it has this small statement;
'you can terminate this agreement at anytime before our final repayment falls due by giving written notice. you all have to return the vehicle and pay (i) any arrears and any other sums which have become payable under the agreement before the termination (including excess mileage charge) plus (ii) the amount (if any) by which one-half of the total amount payable exceeds the aggregate of the advance payment and repayments you have paid, plus (iii) if you do not return the vehicle in good repair and condition, the sum required to compensate us for that. This will be your maximum liability if you comply with these requirments'
Because its got this statement regarding excess milage in the termination section of the contract, am I legally bound to pay this charge?
Thanks in advance for your help
Regards
Wayne
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