PCP Mileage & Damages - responsibility?

ncl_girl

Hi all, 
Looking for any assistance really to put my mind at ease, I can't seem to see a straight answer. 

I am coming to end of a 4 year PCP deal on my current vehicle, and this week took out another finance deal at a new dealership with a different brand. I get my new car sometime in August, just before my current deal comes to an end in September. 

My new dealership were very blase about the return of my current vehicle - asked for the settlement figure, saw some photographs but never came and looked at the car to inspect any damage or check what my agreed mileage was. I had a 4 year contract at 8,000 miles - due to work relocation I have ended up about 13,000 miles over my agreed limit. I have been told to inform the finance company I will be returning the car and arrange collection from the new dealership after I have been to them to collect my new car. 

My question is - whose responsibility will covering the excess mileage and any wear & tear charges be, mine or the new dealer??

DrEskimo

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

ncl_girl

DrEskimo said:

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

Thank you for your response - this is what I was worried about.

I can't afford the payment to buy the car off, it's better for me and my budget to make monthly payments. 

DrEskimo

ncl_girl said:

DrEskimo said:

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

Thank you for your response - this is what I was worried about.

I can't afford the payment to buy the car off, it's better for me and my budget to make monthly payments. 

Ring around and get a price to buy your car as a straight trade. Try local garages and other dealers. Also places like WeBuyAnyCar. Ring your finance company and get the settlement figure and see how they compare. If you can get a price that settles the finance, then you won't have to worry about any additional charges (although the mileage will of course reflect it's value, and damages will need to be declared and might affect value more depending on severity).

I would strongly urge you to see past the monthly payments. In the long run, it will cost you many many thousands more to keep paying new car depreciation and interest charges. Have you looked at personal loan options to buy your current car? What about using what you can borrow to buy a cheaper car?

ncl_girl

DrEskimo said:

ncl_girl said:

DrEskimo said:

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

Thank you for your response - this is what I was worried about.

I can't afford the payment to buy the car off, it's better for me and my budget to make monthly payments. 

Ring around and get a price to buy your car as a straight trade. Try local garages and other dealers. Also places like WeBuyAnyCar. Ring your finance company and get the settlement figure and see how they compare. If you can get a price that settles the finance, then you won't have to worry about any additional charges (although the mileage will of course reflect it's value, and damages will need to be declared and might affect value more depending on severity).

I would strongly urge you to see past the monthly payments. In the long run, it will cost you many many thousands more to keep paying new car depreciation and interest charges. Have you looked at personal loan options to buy your current car? What about using what you can borrow to buy a cheaper car?

Thanks for your advice. 

So you definitely think the mileage and any wear and tear is my responsibility? 

I think my confusion comes from when I traded my last car in, they just asked me for the keys and arranged everything for me so it seems different this time. Granted there was no excess mileage issues then but the car did have some wear and tear.  

DrEskimo

ncl_girl said:

DrEskimo said:

ncl_girl said:

DrEskimo said:

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

Thank you for your response - this is what I was worried about.

I can't afford the payment to buy the car off, it's better for me and my budget to make monthly payments. 

Ring around and get a price to buy your car as a straight trade. Try local garages and other dealers. Also places like WeBuyAnyCar. Ring your finance company and get the settlement figure and see how they compare. If you can get a price that settles the finance, then you won't have to worry about any additional charges (although the mileage will of course reflect it's value, and damages will need to be declared and might affect value more depending on severity).

I would strongly urge you to see past the monthly payments. In the long run, it will cost you many many thousands more to keep paying new car depreciation and interest charges. Have you looked at personal loan options to buy your current car? What about using what you can borrow to buy a cheaper car?

Thanks for your advice. 

So you definitely think the mileage and any wear and tear is my responsibility? 

I think my confusion comes from when I traded my last car in, they just asked me for the keys and arranged everything for me so it seems different this time. Granted there was no excess mileage issues then but the car did have some wear and tear.  

From what you've written, they looked at the car, but never actually provided you a price to trade the car against the new one? Is there anything on any documentation about a trade in price?

If the dealer are taking the car as trade in, then you don't have to worry. If they aren't, and you are instructing the finance company to collect the car at the end of the agreement, then yes you will be liable for the excess charges. The new dealership have nothing to do with your old can and contract if they are not trading the car in against the new one.

neilmcl

ncl_girl said:

DrEskimo said:

ncl_girl said:

DrEskimo said:

Did the new dealership give you a price they are willing to buy trade against the new car? They would only check the condition and mileage to gauge how much to offer it to you. If this is more or the same as the settlement then that would be the easiest option. Essentially you are selling it to them for the same price as your settlement. Do check around though. You could get a better price elsewhere.

If you're handing it back to the finance company, then you will be liable to pay any excess mileage or wear and tear charges, as per your contractual agreement with the finance company.

Any reason you need another new car? Thought about just keeping your current car?

Thank you for your response - this is what I was worried about.

I can't afford the payment to buy the car off, it's better for me and my budget to make monthly payments. 

Ring around and get a price to buy your car as a straight trade. Try local garages and other dealers. Also places like WeBuyAnyCar. Ring your finance company and get the settlement figure and see how they compare. If you can get a price that settles the finance, then you won't have to worry about any additional charges (although the mileage will of course reflect it's value, and damages will need to be declared and might affect value more depending on severity).

I would strongly urge you to see past the monthly payments. In the long run, it will cost you many many thousands more to keep paying new car depreciation and interest charges. Have you looked at personal loan options to buy your current car? What about using what you can borrow to buy a cheaper car?

Thanks for your advice. 

So you definitely think the mileage and any wear and tear is my responsibility? 

I think my confusion comes from when I traded my last car in, they just asked me for the keys and arranged everything for me so it seems different this time. Granted there was no excess mileage issues then but the car did have some wear and tear.  

I think the confusion here is we don't know whether the dealership is taking the car and settling the finance themselves, in which case the excess mileage/damage is irrelevant as presumably they've given you a trade in figure, or they are just expecting you to hand the car back to the finance company as per the terms of your agreement, in which case yes you will be liable for the excess mileage and damage. You haven't really made this clear.

ncl_girl

To be honest I think I have thought they will be settling the finance themselves using the details I have supplied, and actually they are just expecting me to return the car and I am going to be left with this to deal with. 

When I have checked the documentation I left the new dealership with there is nothing noted about a part exchange allowance on my documents. Also if they were taking the car and settling it, why would I need to arrange for the old finance company to collect it? 

May have just answered my own question! But I have definitely done a deal I am not happy with if so. 

Mercdriver

It looks like  they are leaving you to hand the car back which will leave you to cover anything above what is considered reasonable wear and tear and the excess mileage.  If that is what the paperwork says, that is what is happening.  You will beleft with a bill for 13,000 excess miles and for damage that is over the accepted level of wear and tear.  It won't be cheap.

ncl_girl

Mercdriver said:

It looks like  they are leaving you to hand the car back which will leave you to cover anything above what is considered reasonable wear and tear and the excess mileage.  If that is what the paperwork says, that is what is happening.  You will beleft with a bill for 13,000 excess miles and for damage that is over the accepted level of wear and tear.  It won't be cheap.

Mercdriver said:

It looks like  they are leaving you to hand the car back which will leave you to cover anything above what is considered reasonable wear and tear and the excess mileage.  If that is what the paperwork says, that is what is happening.  You will beleft with a bill for 13,000 excess miles and for damage that is over the accepted level of wear and tear.  It won't be cheap.

It does, the new dealer has confused me by saying 'leave the car here and we will deal with it' but then told me to arrange collection. 

ratrace

There must be a way to refinance the baloon payment so you can keep the car and just pay month to month on it,

How much is the new car per month + did you put down a deposit if so how much

How much is the settelment figure on your current car

Buying a used approved 2 or 3 car year old car is a lot cheaper than buying one every 3 or 4 years plus you can get finance on them also as my sister has a vw golf used approved thats is 2 years old + warranty for a lot less than a new golf.