Help/advice needed on my PCP excess mileage!!

Good Morning All,

I am just under 2 years into my pcp agreement with VWFS Audi, it is an AUDI A1 and had agreed a 10k a year on mileage, after changing jobs i have well exceeded the limit of 10k and have done 40k miles, when i signed up i only did so because they said after two years i could give the car back as id be halfway through the agreement.

when i asked about VT the car in September i was told i still have another year on this as the halfway point includes other costs in the agreement, i have gotten myself in around 3k of debt and keep struggling to keep up with the costs of the car and keep worrying about having to pay the excess mileage at the end of the agreement as i wont have the funds to pay it. Is there anything i can do, would it be best to take my agreement to CAB to see if there is anything stated in the agreement.
«1

Comments

  • Mercdriver
    Mercdriver Posts: 3,898
    First Anniversary Name Dropper First Post
    Forumite
    VWFS are correct. You can only VT once 50% of the amount on the agreement has been paid. This can be after x months of regular payments, which is normally just before the normal option to buy point comes or when you top up the amount already paid with extra funds to make it to 50% of the amount on the agreement.

    Thanks to too many people utilising what was introduced to help people struggling with repayments for a consumer trick of changing cars and ignoring the mileage, the lenders are enforcing a pro rata limit on mileage. You can try not to pay it but it as your risk and the risk of getting a CCJ on your credit file.
  • AdrianC
    AdrianC Posts: 42,189
    First Anniversary Name Dropper First Post
    Forumite
    The "amount of the agreement" includes the balloon - that's money you've borrowed, remember.

    Is it cheaper to pay the per mile excess mileage, or to increase the contract mileage to what you're actually doing, so that you don't have an excess to pay? Yes, that'll be a big difference in your monthlies over the remaining term, because you'll be playing catch-up on the monthly difference for the last two years.

    The other option would be to buy the car for the balloon at the end of the contract, so the mileage is irrelevant. Yes, that balloon is based on a 30k car, not a 60k one, so it'll "feel expensive" - but that's because you aren't paying for that extra depreciation over the term.

    One way or another, you've got to pay for the fact you've done twice the mileage that you contracted for - because that extra mileage has a knock-on to the depreciation over the term.
  • loskie
    loskie Posts: 1,761
    First Post First Anniversary
    Forumite
    you can ask the lender to recalculate the monthly payments mid term based on a change in mileage.
  • foxy-stoat
    foxy-stoat Posts: 6,879
    First Anniversary Name Dropper First Post
    Forumite
    loskie wrote: »
    you can ask the lender to recalculate the monthly payments mid term based on a change in mileage.


    If he is struggling with 10,000 miles a year he won't be able to afford the increased monthly payments to take up the excess mileage.....also the CAB won't be able to help so no point in wasting your time there.

    If you run the numbers, paying the excess mileage at the end against handing it back a year early (to save on another years excess mileage costs) or buying a £1000 runner and stop driving your A1 - you will be able to hand it back at the end of the term without any excess mileage.

    How much is the pence per mile excess, it will be in the agreement?
  • Cornucopia
    Cornucopia Posts: 16,146
    First Anniversary Name Dropper First Post Photogenic
    Forumite
    The OP can also seek a valuation from a Third Party to see how much negative equity the agreement is presently in.
  • foxy-stoat
    foxy-stoat Posts: 6,879
    First Anniversary Name Dropper First Post
    Forumite
    Cornucopia wrote: »
    The OP can also seek a valuation from a Third Party to see how much negative equity the agreement is presently in.

    Surely what the car is worth at the moment is not relevant. The PCP agreement is all that matters which states the excess mileage charges and the Guaranteed Future Value.

    The 50% point is not driven by current market value.
  • Cornucopia
    Cornucopia Posts: 16,146
    First Anniversary Name Dropper First Post Photogenic
    Forumite
    edited 17 June 2019 at 4:13PM
    foxy-stoat wrote: »
    Surely what the car is worth at the moment is not relevant. The PCP agreement is all that matters which states the excess mileage charges and the Guaranteed Future Value.

    Since the OP is not going to be allowed to walk away under VT at this stage, the only option is to seek a valuation and subsequent sale or trade-in for something cheaper.

    Whilst the car will be worth less with higher mileage, the actual penalty mileage won't be payable under sale/trade-in arrangements.

    If it were me, I'd definitely be cranking the figures for each of the 5 or so options that exist for termination of a PCP.
  • foxy-stoat
    foxy-stoat Posts: 6,879
    First Anniversary Name Dropper First Post
    Forumite
    Cornucopia wrote: »
    Since the OP is not going to be allowed to walk away under VT at this stage, the only option is to seek a valuation and subsequent sale or trade-in for something cheaper.

    Whilst the car will be worth less with higher mileage, the actual penalty mileage won't be payable under sale/trade-in arrangements.

    Gotcha - he needs to get a loan for the settlement figure and sell it on to try and get his money back to settle the loan, less a couple of grand for a cheap run about until his financial position improves.
  • seatbeltnoob
    seatbeltnoob Posts: 1,298
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    If you asked before you took out the pvp and not after, people would have asked you not to take a pvp and get a £2000 diesel runaround for the mileage you are doing. It's too late now.
  • loskie
    loskie Posts: 1,761
    First Post First Anniversary
    Forumite
    what makes you assume it's a he? Audi A1 more likely to be a she.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards