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Voluntary termination

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  • Voluntary termination

    Evening all,

    I could do with a little help, i have VT'd my Audi A3, i have followed all the threads and have sent the appropriate letter templates provided by the forum

    Example below

    am writing further to your letter dated 9th August 2017, the contents of which are noted.
    In your letter you mentioned that the reason why I am liable for excess mileage is because section 99(2) of the CCA states that termination of the agreement does not affect liability accrued before termination. Whilst I do not disagree with this statement, it would appear that you are misguided in your understanding of a debtors liability because to understand such liability, section 99 and section 100 must be read together.

    For the avoidance of doubt, section 100(1) says the following:

    Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination. (emphasis added)

    As you will see from the above, liability following termination is limited to half of the total amount payable including any sums relating to the total price that became due immediately before the termination of the agreement. To clarify, 'total price' is defined in section 189 of the CCA as:

    the total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement.

    Again, the total price specifically excludes any sums owed for breaches of the agreement, penalty charges or compensation. The excess mileage charges you seek are in fact damages for breaching the terms of the agreement. Therefore, the excess mileage charges do not form part of the total price and as such, fall into the damages and/or the compensation category, which is effectively excluded for the purposes of calculating the total liability of a debtor where termination under section 99 has been invoked.

    I would be grateful if you could confirm by return that you accept the above position and the matter will now be closed. If however, you do not agree with my interpretation above, please could you provided detailed reasons as to why the excess mileage charges are recoverable under section 100(1).

    I look forward to hearing from you confirming that the matter is now closed.

    Yours faithfully,


    Audi have come back to me saying they stand by their desicion, i was wondering what to do next, the car was handed back in perfect condition, fully serviced, no scratches but they are claiming £1100 for excess mileage and a tyre.

    Any ideas




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