PCP - Miles don't matter

[Deleted User]

You should ask the dealer to commit to buying the car at the end of the PCP, guaranteeing that the mileage doesn't matter. If he is so sure he will surely sign up!

motorguy

lopsyfa wrote: »

At any of these two points, the mileage will be considered in the part exchange value offered. For example, when the final value is due, the dealer will not give you the GMV to settle the finance on the car if you have done 40k mileage more than contracted on the car. They will roll the negative equity (due to the mileage) into the next finance. That is why I said the OP will still be liable for the mileage whether directly or indirectly. Because the deal is done together, most people don't see that they are indirectly paying for the mileage.

The value of the car may or may not be equal to the value of the GMV or it may be greater than it, however with your extreme +40,000 miles examples, its likely to be negative.

Typically accrued mileage on a car wont be at anywhere near the perhaps 9,12 or 18p per mile in a contract.

I personally wouldnt set the miles to less than i am doing if i was PCPing, however what the salesman said was not wrong - the contracted miles is only relevant if you hand the car back.

motorguy

lopsyfa wrote: »

But the third option comes with paying for the negative equity which is a penalty for the mileage - so the mileage matters.

Not sure why you quoted my quote to say that, thats not the point i was making.

The mileage on a car will have an impact on the value of the car, however the contracted mileage is only relevant if the car is handed back.

And there may not be negative equity.

motorguy

DELETED USER wrote:

You should ask the dealer to commit to buying the car at the end of the PCP, guaranteeing that the mileage doesn't matter. If he is so sure he will surely sign up!

I have no doubt the O/P is misquoting the salesman slightly. The salesman is quite right that the contracted mileage is irrelevant if the car is not being handed back and the dealer will not {look at the contracted mileage} when the car is being traded in as its irrelevant.

motorguy

AdrianC wrote: »

The consumer can see things however they like. That doesn't affect the reality.

Either the car goes back to the financier - when excess mileage applies - or the financier gets paid the balloon - when it doesn't.

What the consumer then buys off somebody else, whether wrapped up as part of the same deal or not, doesn't affect the reality of the end of the contracted PCP.

I'm still bemused at why you are labouring this point from the finance company's perspective. No one cares. This is a consumer question by a consumer on a consumer forum and they have different options.

AdrianC

motorguy wrote: »

I'm still bemused at why you are labouring this point from the finance company's perspective.

I'm not.

I'm explaining what the options are at the end of THIS contract. The next, completely different, contract that the customer, the driver, Joe Public, whatever you want to call them may or may not sign is a completely different and totally separate contract.

There are only two options involved in the end of this contract, whichever side you look at it from - because it's the same contract from both sides.

1. The car goes back to the financier.
2. The car does not go back to the financier, because somebody has bought it by paying the balloon.

Scrapit

AdrianC wrote: »

I'm not.

I'm explaining what the options are at the end of THIS contract. The next, completely different, contract that the customer, the driver, Joe Public, whatever you want to call them may or may not sign is a completely different and totally separate contract.

There are only two options involved in the end of this contract, whichever side you look at it from - because it's the same contract from both sides.

1. The car goes back to the financier.
2. The car does not go back to the financier, because somebody has bought it by paying the balloon.

How many options does the OP have?

AdrianC

Scrapit wrote: »

How many options does the OP have?

Given that he's not even started a contract yet, he's not in the position of being at the end of it.

But when and if he does... Two options relating to this contract. Then as many as he likes as to what he does after it.

motorguy

AdrianC wrote: »

Given that he's not even started a contract yet, he's not in the position of being at the end of it.

But when and if he does... Two options relating to this contract. Then as many as he likes as to what he does after it.

So the consumer does have more than two options then?

Good we're in agreement.

AdrianC

motorguy wrote: »

So the consumer does have more than two options then?

Good we're in agreement.

I never said that the consumer didn't have multiple options outside of the contract. Of course they do.