Due to pay off PCP this year, but mileage significantly lower than agreement?

Rosie_eliz

Our PCP agreement was taken out on a mileage of 10,000 miles per year as we were unsure of commuting days when we started, however we're now in the fourth year and due to pay off in about 5 months and we haven't even done 10,000 miles in total over the 4 year period. We intend to keep the car at the end of the agreement My questions are:

- Will this affect the amount of balloon payment at the end of the term or will this stay the same per the agreement?

- Should we inform the loan /car company about the mileage now? Will that have any impact?

- Does the answer differ based on the car manufacturer? 

molerat

It will make no difference to the balloon payment.  The only difference will be to the value of the car with a reduced mileage.  If you were going to hand it back then it could be the car is worth more than the balloon so you could sell it to pay off the balloon and pocket the difference.  As you are keeping it you could be ending up with a car worth more than that.  As you are keeping it you need do nothing apart from pay them the balloon amount, the mileage is of no interest to them. You could ask for a settlement figure now and pay that and maybe save a bit of interest. The risk on the balloon is with the lender, they can end up with a car worth more or less than that amount, it makes no difference to your contract.

born_again

As you intend to keep the car it makes no difference.
So no need to contact anyone.

Ayr_Rage

No.
No/no.
No.

You just end up with a low mileage car that, depending on model, may be worth a bit more than if you had done 40,000 miles.