PCP voluntary termination

[Wovoka]

Hi everyone this is my first thread and I would be grateful for some input regarding where I stand legally
All I am trying to do is hand back a vehicle which I can no longer afford due to changes in my employment status.
I have received a figure from the finance company which I agree with and I will put that in place next week, but my question is about mileage excess as I am almost 5000 miles over the pro rata calculation and I have been advised the vehicle is to be inspected under BRVLA guidlines before being picked up.
Do I legally have to pay excess mileage and do I have a choice regarding the inspection as I can find nothing in the original contract which covers this topic

Many thanks in anticipation for your assistance

[R0b]

Hello

Finance companies will argue that excess mileage is recoverable under the contract. The Consumer Credit Act says your liability is capped to 50% of the total price, excluding compensation for breach of contract - there is a county court decision that confirms this position when Mercedes tried it on and lost.

I suggest you read the VT Guide which should tell you everything you need to know but also do some research in the Vehicle and Finance Issues sub-forum, there are plenty of posts there. It is then up to you to decide if you want to pay for excess mileage charges.

[Wovoka]

Thank you Rob
I will check out the two links
There is another issue I am not quite getting if you can kindly help
I was led to believe that to reach the 50% amount which triggers vt compliance was half of the amount borrowed plus interest and an administration fee
What BMW have done is added my advance payment on top of the cost of the car and interest. This they have labelled Total Amount Payable and then calculated 50% of this figure as the vt settlement. Can this be correct as it means that I am paying half of my own advance payment of in this case £4400.00 over 50% of the borrowed sum and interest.
Does this make sense

[emjane79]

R0b - I have read your guide which was very useful. I am also considering starting the voluntary termination process on my PCP plan however, how do I know if I have paid 50%? If I start the process and I haven't what will happen? Thanks in advance

[R0b]

Thank you Rob
I will check out the two links
There is another issue I am not quite getting if you can kindly help
I was led to believe that to reach the 50% amount which triggers vt compliance was half of the amount borrowed plus interest and an administration fee
What BMW have done is added my advance payment on top of the cost of the car and interest. This they have labelled Total Amount Payable and then calculated 50% of this figure as the vt settlement. Can this be correct as it means that I am paying half of my own advance payment of in this case £4400.00 over 50% of the borrowed sum and interest.
Does this make sense

The total price payable includes any advance payment or deposit, but the deposit or advance payment will be added to any instalments already paid to meet the 50% mark. For example, if the total price is £10,000 and you make an advance payment of £4,000 with £200 instalments, you would only need to pay 5 instalments before you became eligible to VT the agreement (£4,000 + £200 x 5 = £1,000 = £5,000 being 50% of the total price).

emjane79 use the method I've given above. You add together any advance payment or deposit and then calculate how many monthly instalments you have paid. Add them together and then if that amount equals 50% of the total price payable (which you should find on the front end of your agreement) then you can VT without liability.

You can also VT earlier but you would be liable to pay the remaining balance to make up the 50%. You could for example, VT after the second month and repay the remaining 50% balance, that is your right. It is a myth and especially by finance companies to say you must have paid 50% before you can VT and if they refuse to accept your VT, then they would be liable for what is known as a repudiatory breach entitling you to accept their breach, terminate the agreement and discharge all future obligations