Car Finance - PCP

Queeny123

Hey guys,

Newbie here so be gentle :P

I'm looking for some information on car finance - specifically PCP (sorry if this is in the wrong section)

Last November, I bought my first car from Citroen on PCP (its a Citroen C1 VTR). This was all fine, great, its a lovely wee car - but thats the problem, it looks good and is cheap to run, thats about it. On the PCP contract, I can only do 18000 miles over the 3 years, paying £167 per month, with a lump sum after the 3 years if I want to keep it.

At the time of buying the car, I lived 11 miles from work, and was commuting to work via train so the mileage wasnt a problem. I was also only doing town miles, with the occasional motorway journey.

I have now moved house. I live 25 miles away from my work, in a small village that has no train station, and the only public transport I can get is a bus that gets me to work 45 minutes late. I'm doing a 50 mile round trip a day, and my wee car cant take it whenever it goes over 50mph for longer than maybe 10 minutes or so, it smells like burning toast n starts growling. Theres nothing wrong with it, Ive had it checked, it just cant handle all the motorway miles.

This year alone, I have racked up over 8000 miles, and my car isnt even a year old yet.

What I was wondering is, can I trade this car in now? Even though it is only a year old? I have paid 2k into it so far, car cost 8k, but with interest and everything is about 11k.

Sorry for the long post - I didnt want anyone to think I was a silly little girl just messing about and wanting a new car for the sake of it lol.

Thanks for any help in advance.

DCFC79

What does the contract say about trading the car in at an early stage ?

An alternative is to leave earlier for work to make sure you get to work on time whilst driving 50mph

Queeny123

Thats true - doesnt solve my mileage problem though I'll be well over by the time 3 years come if I continue using it for work, meaning a massive charge,

Doesnt say anything at all in the contract about trading in early - I've read it back to back over the past couple of weeks. I'm going to take it into a car dealership and ask them, but thought I'd try here first.

Thanks

Lifes_Grand_Plan

Do you intend keeping the car when the PCP ends... if so then the 18,000 miles is irrelevant. Its only if you intend handing it back that you have to stick to it, which I guess you do?

Queeny123

Yeah, I dont want to keep the car forever. I made a massive mistake buying my first car brand new, was just so excited to get on the road.

I've been told as well that the excess mileage only matters if I am handing the car back to the finance company, but not if I'm trading it in, selling it or as you say keeping it. Which is another option, but trying to get rid of a car with loads of miles is yet another nightmare.

Wow, just noticed the big newbie badge in the corner - cringeee!

BugsyBrowne

Renting a car is very expensive.

SeanG79

Too late now, but why 6,000 miles per year when anything less than 10,000 doesn't count when they factor the GFV. I think some sales staff at dealers are uneducated regarding the PCP, because it seems to happen regularly and the only benefit is to the lender who can charge excess mileage if the vehicle is returned.

If you are not looking to return the vehicle and will settle the balloon payment at the end, then the mileage makes no difference.

Your agreement should mention voluntary termination points and repossession points in the contract. VT is reached when 50% of the balance has been paid, which is made up of the capital cost plus all charges. If you VT the car, the lender will charge you excess mileage pro rata for the length of time you have had the vehicle. a VT mark will be placed on your credit profile (this is not adverse credit) and this may restrict the terms offered in future car finance.

You can always get a settlement figure from the lender, and a trade in or part ex value from a dealer. You will need to cover the any shortfall, however you may be able to incorporate the negative equity into the new finance agreement.