exceeding pcp mileage...time for a change?

fifthflaw

I have a pcp deal on an audi a3. Costing me around £330 per month based on 8000 miles per year. Problem is I have recently changed jobs and will be covering around 20,000 miles per year. I am worried that i will rack up a sizable excess milage fee at the end of the term if I continue with the pcp. Does anyone have an approximate idea how much per mile the average excess is? I've been told around 20p per mile?

motorguy

fifthflaw wrote: »

I have a pcp deal on an audi a3. Costing me around £330 per month based on 8000 miles per year. Problem is I have recently changed jobs and will be covering around 20,000 miles per year. I am worried that i will rack up a sizable excess milage fee at the end of the term if I continue with the pcp. Does anyone have an approximate idea how much per mile the average excess is? I've been told around 20p per mile?

It will be on your contract, or the finance company will be able to tell you. Expect it to be 6p per mile.

The only time the mileage matters would be if you were going to hand the car back. In any other circumstance it doesnt matter - if you buy it outright then its not an issue, and if you trade it in, then it will be valued by the dealer irrespective of the residual amount.

If you do intend to hand it back, then you'd be best to calculate out each month how much extra miles you've done and then set aside that amount of money into an account.

fifthflaw

pgilc1 wrote: »

It will be on your contract, or the finance company will be able to tell you. Expect it to be 6p per mile.

The only time the mileage matters would be if you were going to hand the car back. In any other circumstance it doesnt matter - if you buy it outright then its not an issue, and if you trade it in, then it will be valued by the dealer irrespective of the residual amount.

If you do intend to hand it back, then you'd be best to calculate out each month how much extra miles you've done and then set aside that amount of money into an account.

Thanks Paul. I was planning on giving the car back as I don't think id be too keen on another Audi, I was somewhat disappointed after my last golf GTI. Im tempted to pay the penalty for giving the car back now (around £1800) and getting a loan to buy an older GTI for around 13k-14k. At least at the end there will be some form of equity in it (I hope!).

motorguy

fifthflaw wrote: »

Thanks Paul. I was planning on giving the car back as I don't think id be too keen on another Audi, I was somewhat disappointed after my last golf GTI. Im tempted to pay the penalty for giving the car back now (around £1800) and getting a loan to buy an older GTI for around 13k-14k. At least at the end there will be some form of equity in it (I hope!).

Are you sure its a penalty? Have you paid 50% of the total agreement? (because you CAN hand the car back when you've done that) Otherwise your into the realms of effectively defaulting and handing the car back, which is not a good idea.

I think you'd be crazy to buy a GTI and be doing that mileage.

Also, why not just simply trade the car in to the dealer you're buying your next car off - you're under no obligation to deal with Audi?

Anihilator

Keep it and trade it in at the end of the PCP hence the excess mileage won't matter.

The only way you would lose here is if the car is worth less than the PCP payment (unlikely).

You can then get your Golf or whatever you want.

fifthflaw

Im only 2 years into a 43 month pcp. Last time I asked the car was worth 11500-the baloon payment is £8600ish I think. Im a bit worried that with doing 20k its going to be worth quite a bit less than the baloon?

motorguy

fifthflaw wrote: »

Im only 2 years into a 43 month pcp. Last time I asked the car was worth 11500-the baloon payment is £8600ish I think. Im a bit worried that with doing 20k its going to be worth quite a bit less than the baloon?

I would be surprised if selling now it was worth 'more' than what you owe on it.

Can i be honest here? I think you want a GTI - maybe new job = more money and you want to treat yourself?

fifthflaw

yes its not worth more, the settlement fee is around £13300 its more that Im concerned about its value come balloon payment time if im doing this mileage. Or am I barking up the wrong tree as to how this works? There is a good deal of truth in your theory as to my motivation thiough Paul ;-)