V12VF | Consumer Duty | April 23 - Flipbook - Page 26
10.3 Damage charges on Voluntary Termination and PCP returns.
For Voluntary Terminations (HP and PCP) and Vehicle Returns at the end of the agreement (PCP), an inspection of the car in line
with BVRLA Fair Wear & Tear Guidelines will take place at point of collection.
The customer will be charged for damage or missing items.
10.4 Excess mileage charge on PCP returns (end of agreement or Voluntary Termination)
The customer chooses an annual mileage when they enter into their PCP agreement. This calculated mileage over the term
plus the mileage of the car at the start of the agreement (mileage on delivery) is shown on the customers agreement as the
Maximum mileage allowed (at the end of the agreement).
If the customer exceeds the maximum mileage allowed on the agreement, a pence per mile charge (which is presented on the
agreement at the outset) calculates the excess mileage charge for each mile over the maximum mileage allowed. The pence per
mile has been calculated for the specific vehicle variant and age so that the excess mileage charge represents the reduced value
of the car at its mileage versus the mileage at which the Guaranteed Minimum Future Value was calculated on (the maximum
mileage allowed).
If a customer returns a vehicle before the end of the agreement (so Voluntary Termination), the maximum mileage allowed will
be reduced proportionately, and the pence per mile calculated and charged as above if appropriate.
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