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    • rs65
    • By rs65 6th May 13, 3:10 PM
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    rs65
    Excess mileage charge on a PCP
    • #1
    • 6th May 13, 3:10 PM
    Excess mileage charge on a PCP 6th May 13 at 3:10 PM
    I am hoping for a definitive answer on when an excess mileage charge applies.

    1. Trade it in before the end of the period - doesn't apply (but mileage affects the trade in value)

    2. Return it at the end of the period - excess mileage charge applies

    3. Buy the car at the end of the period - doesn't apply

    4. VT - does excess mileage charge apply?

    My contract says I can terminate early as long as I have paid half and taken reasonable care of the car. No mention of what the mileage should be at VT point.

    Does anyone know for definite?
Page 1
    • CB1878
    • By CB1878 6th May 13, 3:38 PM
    • 84 Posts
    • 40 Thanks
    CB1878
    • #2
    • 6th May 13, 3:38 PM
    • #2
    • 6th May 13, 3:38 PM
    Your VT should have no issues with mileage on a vehicle, taxi drivers have done it for years on HP agreements. However, it will be an awkward process as the finance company are hardly likely to help you along the way.

    Your points are pretty much spot on, but my view would be go an see what deal you can get if you part ex early, the vehicle will simply have an exchange value and no excess mileage charges should apply if you part ex.

    If you can get a decent deal this way it will be far easier in the long run, if not then VT. I would suggest that you get another finance deal passed before you initiate a VT, might be easier to do in the long run.
    • rajarr
    • By rajarr 6th May 13, 3:43 PM
    • 30 Posts
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    rajarr
    • #3
    • 6th May 13, 3:43 PM
    • #3
    • 6th May 13, 3:43 PM
    If you are on HP you will never have to pay an excess mileage charge, on a PCP you have a set amount of miles you can do annually and if you go over this you get a set charge per mile you have gone over.

    When you VT the car is graded under the BVRLA fair wear and tear guidelines, if the damage isn't deemed fair wear and tear they will look for you to pay to repair any damage
    • rs65
    • By rs65 6th May 13, 3:54 PM
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    rs65
    • #4
    • 6th May 13, 3:54 PM
    • #4
    • 6th May 13, 3:54 PM
    Your VT should have no issues with mileage on a vehicle, taxi drivers have done it for years on HP agreements. However, it will be an awkward process as the finance company are hardly likely to help you along the way.

    Your points are pretty much spot on, but my view would be go an see what deal you can get if you part ex early, the vehicle will simply have an exchange value and no excess mileage charges should apply if you part ex.

    If you can get a decent deal this way it will be far easier in the long run, if not then VT. I would suggest that you get another finance deal passed before you initiate a VT, might be easier to do in the long run.
    Originally posted by CB1878
    Thanks. I am considering trading in at the moment (traded in the last time too).

    The reason I ask is that I am being offered a deal based on 15,000 miles - which will reduce if I base it on 10,000. I am currently doing about 18,000 a year.

    If I never plan to let a deal run its course, I am financially better off on a lower mileage deal as it will never affect me.

    Seems a no-brainer, hence why I wanted to check.
    • CB1878
    • By CB1878 6th May 13, 3:56 PM
    • 84 Posts
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    CB1878
    • #5
    • 6th May 13, 3:56 PM
    • #5
    • 6th May 13, 3:56 PM
    If you are on HP you will never have to pay an excess mileage charge, on a PCP you have a set amount of miles you can do annually and if you go over this you get a set charge per mile you have gone over.

    When you VT the car is graded under the BVRLA fair wear and tear guidelines, if the damage isn't deemed fair wear and tear they will look for you to pay to repair any damage
    Originally posted by rajarr
    Would be the same if you VT on either PCP or HP, so if you have a big dent in the side then you could be forced to pay for a repair. As I said if you can, I would part ex early. If you have to VT then make sure the vehicle is what you would expect for fair wear and tear. If there is a big dent, get it done yourself, it will be far cheaper than the prices they will want to charge.
    • CB1878
    • By CB1878 6th May 13, 4:00 PM
    • 84 Posts
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    CB1878
    • #6
    • 6th May 13, 4:00 PM
    • #6
    • 6th May 13, 4:00 PM
    Thanks. I am considering trading in at the moment (traded in the last time too).

    The reason I ask is that I am being offered a deal based on 15,000 miles - which will reduce if I base it on 10,000. I am currently doing about 18,000 a year.

    If I never plan to let a deal run its course, I am financially better off on a lower mileage deal as it will never affect me.

    Seems a no-brainer, hence why I wanted to check.
    Originally posted by rs65
    Have you checked what the cost of the 18k a year is against the 10k? I am sure you have, but I seem to remember that it was normally far cheaper upping you miles than paying an excess mileage charge (which I know you will never do, but it would give you the option to run to the end of the deal if you wanted?)

    Does seem as though you have it sussed though
    • rs65
    • By rs65 6th May 13, 4:01 PM
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    rs65
    • #7
    • 6th May 13, 4:01 PM
    • #7
    • 6th May 13, 4:01 PM
    When you VT the car is graded under the BVRLA fair wear and tear guidelines, if the damage isn't deemed fair wear and tear they will look for you to pay to repair any damage
    Originally posted by rajarr
    Thanks, but the question was specifically about mileage on a PCP deal.
    • rs65
    • By rs65 6th May 13, 4:08 PM
    • 4,711 Posts
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    rs65
    • #8
    • 6th May 13, 4:08 PM
    • #8
    • 6th May 13, 4:08 PM
    Does seem as though you have it sussed though
    Originally posted by CB1878
    I keep thinking I've got it sussed.

    If I go for 10,000 miles, I save about 29 a month compared to 15,000 miles.

    This gives a potential excess mileage charge of 8,000 times 4 years at about 8.5p a mile. A potential exposure to a charge of 2,720. But as long as I don't let the deal run its 48 months, I have no excess mileage charge and have saved 29 a month.

    (I think)
    • neilmcl
    • By neilmcl 6th May 13, 4:49 PM
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    neilmcl
    • #9
    • 6th May 13, 4:49 PM
    • #9
    • 6th May 13, 4:49 PM
    For us laymans - VT = ?
    • TadleyBaggie
    • By TadleyBaggie 6th May 13, 5:10 PM
    • 1,714 Posts
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    TadleyBaggie
    For us laymans - VT = ?
    Originally posted by neilmcl
    Voluntary Termination.
    • forgotmyname
    • By forgotmyname 7th May 13, 2:07 PM
    • 22,101 Posts
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    forgotmyname
    The theory is there and its been mentioned a few times. But personally i would prefer the figure to be closer to take the risk.

    If it doesnt pan out you risk a bill of 1400 ish over what you saved?

    Seems too easy for them to lose money. Handing back a car thats worth substantially less.
    If its a loophole they have not plugged yet then take advantage now whilst you can.

    Is it worth a gamble? 1400 ?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • motorguy
    • By motorguy 7th May 13, 2:48 PM
    • 13,180 Posts
    • 6,907 Thanks
    motorguy
    The theory is there and its been mentioned a few times. But personally i would prefer the figure to be closer to take the risk.

    If it doesnt pan out you risk a bill of 1400 ish over what you saved?

    Seems too easy for them to lose money. Handing back a car thats worth substantially less.
    If its a loophole they have not plugged yet then take advantage now whilst you can.

    Is it worth a gamble? 1400 ?
    Originally posted by forgotmyname
    I dont think its a gamble. You are exercising rights of VT. These are actual rights not related to a PCP agreement. These rights dont make reference to the mileage on the car.

    I think its a loophole the finance company rather like to keep quiet about.
    Regards

    Paul
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