Finance Question

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Kerr
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Re: Finance Question

Post by Kerr » Thu Jun 21, 2018 11:10 am

ellingtj wrote:
Thu Jun 21, 2018 10:57 am
Uncle Tupelo wrote:
Wed Jun 20, 2018 9:16 pm
ellingtj wrote:
Wed Jun 20, 2018 6:25 pm


4 is not strictly correct, over mileage charges are not a feature of voluntary termination. As long as the vehicle is in good condition then mileage charges are not enforceable. However, if you wish to use BMWFS again then a VT will make you look less attractive especially if they had to swallow an over mileage.
https://www.thecarexpert.co.uk/car-fina ... on-pcp-hp/
The Financial Ombudsman has already found against someone who tried to avoid over-mileage charges when VTing.

http://www.ombudsman-decisions.org.uk/v ... leID=65660
This I had not seen, but it does raise the question of how a strict legal interpretation would look in court?
The carexpert page was written in 2014, then updated in 2017. As mentioned above people have been forced to pay for additional mileage usage. I think that is only fair to be honest. People clearly signed an agreement when taking out a PCP.

HP finance deals didn't have any stipulation on mileage and just instructions about the care of the vehicle. PCP deals the contract has similar stipulations, but also clearly states the mileage conditions.

Using VT I already think is a bit of a dodgy thing to do. It is a legal right, but seems a little wrong taking on a debt and trying to get out of it. It's for a little protection for those who fall on hard times, but it's just a clause used by most to try and leave behind debt when they are looking to change car.

I've seen advice on forums that when taking out a PCP to pick the lowest mileage option available. Their plan is to keep payments as low as possible and VT the car later. That's not using VT for what it was designed to be, that is just plain abuse.

It'll just make borrowing for cars more expensive for everyone else.

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Uncle Tupelo
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Re: Finance Question

Post by Uncle Tupelo » Thu Jun 21, 2018 11:31 am

IANAL, but I'd think it would come down to whether the court considers that exceeding the agreed mileage breaches the "reasonable care" condition stated in the Act. As a layman, I don't think that's an unreasonable conclusion. Nor did the Ombudsman, nor the Adjudicator in this case.
Last edited by Uncle Tupelo on Thu Jun 21, 2018 1:16 pm, edited 1 time in total.
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ASB1960
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Re: Finance Question

Post by ASB1960 » Thu Jun 21, 2018 12:00 pm

What I did find interesting was the last bit. Stating that the complainant didnt have to accept the decision. I always thought ombudsman decisions were binding on both sides.
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Uncle Tupelo
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Re: Finance Question

Post by Uncle Tupelo » Thu Jun 21, 2018 1:22 pm

ASB1960 wrote:
Thu Jun 21, 2018 12:00 pm
What I did find interesting was the last bit. Stating that the complainant didnt have to accept the decision. I always thought ombudsman decisions were binding on both sides.
I suspect either that used to be the case, or that different Ombudsmen schemes have different rules. Many years ago, I had a complaint upheld by the Ombudsman for Estate Agents and I'm sure that was binding, but more recently had a complaint against my bank upheld by the Financial Services Ombudsman, where I did have the option of taking legal action if I didn't accept the finding. (In that case, I also had cause to complain about the Ombudsman, but they resolved that complaint so I never found out if there was an Ombudsmen Ombudsman.)
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