PCP lower mileage

Luap20

Hi all, I have a 3 year term car finance, PCP, with Black horse.  Currently 1 year in and my mileage is down significantly.  The agreement is based on 20k miles per year but due to an operation last year and Coronavirus lockdown I have driven 8k miles so far.  My company are making decisions on home working so it looks like my mileage will be permanently low (expect mileage will be 30k at the end of term)

I haven’t approached Black horse yet as didn’t want my discussions to affect my file in anyway.  But do you think I have any option to reduce my mileage and payments? Or am I locked in and need to suck it up?  At the end of the agreement I plan to hand the car back and not take a new deal so the benefits of lower mileage will be lost.

Any advice very welcome.

macman

Asking the question won't affect your file. Most unlikely that they will voluntarily renegotiate the contract, since there's nothing in it for them, but what do you have to lose by asking?
Mileage is not such a huge factor these days. Depends on car and monthly payment, but you might be looking at around £15pm saving?

Luap20

thanks macman.  Its a Jaguar F pace, had a few quotes before signing up and 45k was £100 cheaper pm. But agree there’s little chance of them renegotiating. 

JamoLew

On the plus side, the balloon payment will be based on a 3 year old car with 60k miles on it.
You will have a 3 year old car with much less -- you may well in 2 years time have a vehicle that is worth more than the balloon payment

mobilejo

JamoLew said:

On the plus side, the balloon payment will be based on a 3 year old car with 60k miles on it.
You will have a 3 year old car with much less -- you may well in 2 years time have a vehicle that is worth more than the balloon payment

Exactly. If your mileage is significantly lower than expected, get the car valued as you will have the option of selling the car, paying off the balloon and pocketing the difference if the car is worth more than the balloon. 

I would be more bothered about under-mileage in a lease, where there is no mechanism that allows the customer to benefit from it.

Grumpy_chap

Ask for a renegotiation, but getting one is probably a long-shot.  These deals are always weighted in favour of the car dealer / finance company and not the customer.  I'm not sure how much the used price will benefit from the lower mileage either as there will be loads of cars all going off-lease that have much lower mileages than anticipated when the deals were first taken out.

jfinnie

I think it will turn out to be a pointless exercise, better off putting the money saving effort elsewhere.  They have no reason to negotiate on this.  And even if they did, given these deals are priced so depreciation is taken into account, and we're heading for a downturn, there's every chance the anticipated depreciation increase outweighs the mileage decrease benefit.