Excess mileage invoice (BMW Finance)

[Jane Mundy]

Hi Stuart

I have recently done a VT on my BMW and have received an invoice for £1500 for excess mileage over the contracted mileage. At the start of the agreement I estimated that I would do 8000 miles a year but my job circumstances changed which meant I had more miles to get to work so the car has gone back with more miles than anticipated.
Am I legally obliged to pay this invoice?

[Stuart Masson]

Hi Jane. Apologies, my reply yesterday seems not to have registered.

Excess mileage is a disputed aspect of voluntary terminations. Most experts argue that the finance companies cannot charge excess mileage on a VT. The finance companies disagree, but it has never (as far as I know) had a definite decision made by a judge in a court. The finance companies are not keen to test it in court, as their case is not strong.

For more information, have a read of our article on voluntary terminations.

[Jane mundy]

Thanks Stuart. They have sent me a notice and are quoting the Consumer Credit Act 1974 saying I am behind sums payable under the Contract Purchase agreement and have sent me a FCA information leaflet on arrears. I’m not sure how to respond to this as it seems quite heavy and would want this to affect any credit record etc?

[Stuart Masson]

The section of the Act that the finance company is referring to is heavily disputed, and the FCA leaflet does not make them right.

If you want to dispute the excess mileage charges, i would suggest you visit legalbeagles.info for some free legal guidance, or (preferably) consult a lawyer to help you respond to the finance company.

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