PCP - Car Financing

[samunwise]

Dear LeagalBeagles -

I've recently come to the end of my 3 year PCP finance, I've been informed that there are 2 elements to the agreement that I wasn't aware of:
a) the mileage allowance over the 3 year period is 18,500 so 6,166 miles per year
b) the excess mileage charge was stipulated as excluding VAT

My concerns are as follows:
a) the mileage allowance I was initially offered as 10,00 per year, my concern was that in our previous car we drove closer to 12,500 miles per year and so we asked for this to be reflected in our agreement
b) why should an excess mileage charge have VAT?

Looking at the paper work I received from the dealership there was no mention of the excess mileage or VAT relating to excess mileage; I've queried this with the dealership and they sent me a PDF copy of the agreement they had and I've been able to locate the figures they have mentioned - it was casually slipped into a paragraph of 2nd page of 6 (none of which I received in my pack).

The total charges (excess mileage + VAT) is tallying up to ~£1,000

Could you let me know if I have any legal leg to stand on?

Many thanks in advance


Is there any

[R0b]

Re: PCP - Car Financing

Dear LeagalBeagles -

I've recently come to the end of my 3 year PCP finance, I've been informed that there are 2 elements to the agreement that I wasn't aware of:
a) the mileage allowance over the 3 year period is 18,500 so 6,166 miles per year
b) the excess mileage charge was stipulated as excluding VAT

My concerns are as follows:
a) the mileage allowance I was initially offered as 10,00 per year, my concern was that in our previous car we drove closer to 12,500 miles per year and so we asked for this to be reflected in our agreement
b) why should an excess mileage charge have VAT?

Looking at the paper work I received from the dealership there was no mention of the excess mileage or VAT relating to excess mileage; I've queried this with the dealership and they sent me a PDF copy of the agreement they had and I've been able to locate the figures they have mentioned - it was casually slipped into a paragraph of 2nd page of 6 (none of which I received in my pack).

The total charges (excess mileage + VAT) is tallying up to ~£1,000

Could you let me know if I have any legal leg to stand on?

Many thanks in advance


Is there any

Hello,

You are in the same position as many others and it would be helpful if you could answer a few questions below.

1. Who is the PCP agreement with, MBFS, BMW, VWFS or someone else? Are you able to upload the agreement (personal info redacted) so I can take a look at the terms and conditions?
2. Again, is it possible to upload all other documents you received from the dealership?
3. Was there anyone with you when you discussed the agreed mileage?

To answer your question about VAT, the lender can't charge VAT on damages because under the tax rules, damages for breach of contract is not a consideration of supply i.e. goods rather it is compensation. I suspect the lender might have a one-size fits all PCP agreement which is used for businesses and consumers. Without seeing the agreement though, I am only speculating.