Exceeding mileage cap on pcp agreement

hawthornthwaitel

I have my vehicle on PCP and since taking out the agreement my employment situation has changed a couple of times meaning for a while I was driving much further than anticipated. I now think it’s highly likely that I will exceed my mileage cap as set out in my PCP agreement. I know that if this is the case, I could pay the excess mileage charge when the agreement ends. However, I was wondering if there’s any way of me increasing my monthly payments to account for the additional mileage to avoid having to pay out a lump sum at the end of the agreement?

Car_54

Why not just put the calculated amount into a savings account?

neilmcl

hawthornthwaitel said:

I have my vehicle on PCP and since taking out the agreement my employment situation has changed a couple of times meaning for a while I was driving much further than anticipated. I now think it’s highly likely that I will exceed my mileage cap as set out in my PCP agreement. I know that if this is the case, I could pay the excess mileage charge when the agreement ends. However, I was wondering if there’s any way of me increasing my monthly payments to account for the additional mileage to avoid having to pay out a lump sum at the end of the agreement?

Phone the PCP provider and ask.

[Deleted User]

The monthly sum is based on total cost - deposit - GMV. Driving more, your GMV will be lower, so in theory you could pay more to match the drop in GMV but it would be more MSE to just wait to the end and see - you could lose your job tomorrow or find a job 1 minute from your house and it'd be pointless then overpaying. If you buy the car at the end by paying the balloon then it doesn't matter anyway and is much cheaper than starting another PCP

Flight3287462

Read your contract, it should tell how much you will pay per excess mile eg 10p/mile + VAT.

If you are really going to stratospheric levels it might be better to pau the lump sum at the end of the contract and buy the car.  Then you won't have to worry about excess mileage.

As above leave it until then but put by the appropriate amount as you go and it won't come as a big shock.

DrEskimo

Deleted_User said:

 so in theory you could pay more to match the drop in GMV but it would be more MSE to just wait to the end and see

Or it could be more MSE to increase the mileage to lower the GFV, as you would then be paying the total loan down quicker thus saving on interest...

Revert to a standard personal loan with effectively £0 GFV and you will save even more in interest. Possibly even at a lower rate if circumstances allow.

Ectophile

Remember that the mileage charge only applies if you hand the car back to the finance company with an excess mileage.

Alternatives are to trade it in, with the buyer paying off the finance.  Or you make the final payment, and the car is yours.

macman

And then sell it on yourself, if that is what you want to do.