Help/advice needed on my PCP excess mileage!!

jreynolds93

I would like to thank everyone for their replies, Since April i started a new job which is only 5 miles from home so i now wont be doing as many miles as i was. previously i was doing 400 miles a week where now i am doing around about 50 miles a week, currently have 42k on mileage on the clock and just shy of two years into my pcp agreement which will be in September, i believe the Price per mile is 4p a mile after the agreed amount of 10k a year. so i am currently around 22k over my allowance two years in, and i would say my estimated mileage over the next year will be around 5000 at around 400 a month which will take my mileage to 47k and i will be 3 years into my agreement, at that point i would of reached the 50% to VT but be 17k over i believe. what would be the best thing to do ask for extra mileage to make the payments more but at the end when i VT ill have less to pay off in excess mileage.

AdrianC

So it's a 4yr PCP, 10k/yr?

2yrs, 42k.
50 miles/week = 2,500/year = 47k at end of 4yrs.
5k/yr = 52k at end of 4yrs.

So you'll be looking at 7-12k over the contracted, @4p/mile = £280-£480.

Why are you stressing about this?

Penelopa.Pitstop

17000 * 0.04 is only £680. Just start saving the amount and you will be fine when you VT the car. You have around 15 months to save £680, that's only £45 per month. Surely you can cut some expenses and save it.

foxy-stoat

loskie wrote: »

what makes you assume it's a he? Audi A1 more likely to be a she.

He, she, it, them - whatever. Not really relevant to the OP's problem, but good to know you are watching the small details.

jreynolds93

Because i was planning to VT it at the 3rd year as i dont want to keep it for 4 years as i dont want to pay the balloon payment at the end of the agreement which is around 9k to keep the car and id rather get a cheap run around at the end of the 3rd year to save money for a house, so id need to work out the mileage at the end of the 3rd year.

Current mileage = 42k
mileage estimate till september which will be end of 2nd year of having car = 43k
mileage at the end of 3rd year = between 50-53k

So ill be on 30k mileage on my allowance which is 23k over my allowance = about £920 if thats right so ill just need to save that to pay off the excess mileage or will i be able to dispute this at all?

AdrianC

jreynolds93 wrote: »

Because i was planning to VT it at the 3rd year as i dont want to keep it for 4 years

So why not take out a 3yr deal in the first place?

as i dont want to pay the balloon payment at the end of the agreement which is around 9k to keep the car

Even if you take it to term, you don't need pay the balloon.

or will i be able to dispute this at all?

No. You signed a contract with that included. Two years ago...

Cornucopia

jreynolds93 wrote: »

...will i be able to dispute this at all?

There are 5 basic options for settling a PCP:-

1. Hand the car back at the end of the term. Mileage penalties will apply per the contract and there may be other charges based on damage to the vehicle.

2. Trade in the car for its present market value. This can be done at any time subject to the sale of the vehicle settling its outstanding finance. Mileage/damage penalties are not payable, but the receiving buyer will determine the market value.

3. VT the car after you have paid 50% or more of the amount due under the contract. This will settle the finance, and you will return the car with no further finance payments. Depending on the Finance Company, they may try to make charges for excess mileage (pro-rata under the original terms) and damage. These charges can be subject to a certain amount of negotiation.

4. Pay the Balloon payment and buy the car. No mileage penalty or damage charges will apply and you will own the car at its present market value.

5. Buy a new car from the same manufacturer's dealer network. If there is equity in the car, you should be able to access that for the new deal.

foxy-stoat

Is it 4p per mile over the agreed mileage with any limits? £960 sounds like a cheap way out of your problem - as long as they don't come after you for more wear and tear/repair items.

AdrianC

foxy-stoat wrote: »

Is it 4p per mile over the agreed mileage with any limits? £960 sounds like a cheap way out of your problem - as long as they don't come after you for more wear and tear/repair items.

Indeed.
Just over £25/month difference for 75%+ higher mileage...

foxy-stoat

AdrianC wrote: »

Indeed.
Just over £25/month difference for 75%+ higher mileage...

Bargain if you ask me !