Help/advice needed on my PCP excess mileage!!

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Olivia_Leach
Olivia_Leach Posts: 1 Newbie
in Motoring
I am currently just over a year into my pcp finance agreement on my Audi A1, when I first took out the agreement last January I was in a different job and only doing around 5-6 miles a day so only put down 5000 annual mileage, I now have a new job and have been doing around 40 miles a day since July last year so my mileage has significantly increased and it only just occurred to me to looks through my agreement documents to now see that I’m only around 10-15k off my mileage limit with another 3 years left of my pcp and a 7.2 per mile excess mileage charge, which I’ll let you do the maths on how much I will be charged come handing back day.

What is your advice on how I should approach this, do I call them and see if I can up the mileage? Would this significantly increase my monthly repayments? If so I have had my eye on the Q3 which now being in new employment I can afford to pay so would prefer to pay higher monthly’s for a better car than keep the A1 with higher monthly payments from the excess mileage, would this be an option for the dealer?

Long winded I know but any help would be very appreciated!

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  • daveyjp
    daveyjp Posts: 12,526 Forumite
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    Start saving the extra you want to spend on a new car so in a few years you are in a position to pay the termination fees, or even buy the car at the end of the term

    Changing cars will not be cheap and using spare cash to simply spend more on a car isnt very MSE.
  • rs65
    rs65 Posts: 5,682 Forumite
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    You can phone them and increase your mileage. It will increase your payments.

    You can trade it in for a new car anytime.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
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    rs65 wrote: »
    You can phone them and increase your mileage. It [STRIKE]will[/STRIKE] may increase your payments.

    You can trade it in for a new car anytime.
    Corrected that. Whilst an increase in payments is likely it's not always inevitable.
  • Bigphil1474
    Bigphil1474 Posts: 2,430 Forumite
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    Based on half a year at 1.5k miles a year (Jan to July 2017), and 3.5 years at 10k miles a year (40 miles a day Mon-Fri). Actual mileage would be 0.75k + 35k = 35.75k miles. Difference (against agreed 5k a year) - 15.75k miles at 7.2p per mile = £1,134. If you amend your mileage allowance to 11k a year for the remaining 3 years, and it costs less than £31.50 a month, then that saves you money against the excess mile charge. Other costs/charges may vary.
  • Lucky_Duck_2
    Lucky_Duck_2 Posts: 271 Forumite
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    rs65 wrote: »
    You can phone them and increase your mileage. It will increase your payments.

    You can do this online these days.
  • Nasqueron
    Nasqueron Posts: 8,832 Forumite
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    Olivia_Leach wrote: »
    I am currently just over a year into my pcp finance agreement on my Audi A1, when I first took out the agreement last January I was in a different job and only doing around 5-6 miles a day so only put down 5000 annual mileage, I now have a new job and have been doing around 40 miles a day since July last year so my mileage has significantly increased and it only just occurred to me to looks through my agreement documents to now see that I’m only around 10-15k off my mileage limit with another 3 years left of my pcp and a 7.2 per mile excess mileage charge, which I’ll let you do the maths on how much I will be charged come handing back day.

    What is your advice on how I should approach this, do I call them and see if I can up the mileage? Would this significantly increase my monthly repayments? If so I have had my eye on the Q3 which now being in new employment I can afford to pay so would prefer to pay higher monthly’s for a better car than keep the A1 with higher monthly payments from the excess mileage, would this be an option for the dealer?

    Long winded I know but any help would be very appreciated!

    You only pay excess mileage charges if you hand the car back as the agreed value at the start is based on your mileage. It's not very MSE to keep buying a new car every 3 years as it's money down the drain. Do you NEED the Q3 vs the A1? Can you afford it (given presumably different MPG, higher insurance especially if using it for commuting not just SDP etc). Spending 36-42 months paying for a car then committing to spending about 36-42 months of paying for a car is a massive waste of money especially if paying interest. Why not just keep the car and save up for a new one when you need it, rather than want it
  • daveyjp
    daveyjp Posts: 12,526 Forumite
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    Also OP check the mileage limit on your insurance and increase if necessary.
  • loskie
    loskie Posts: 1,761 Forumite
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    Are you in a position where you have the cash or can take out a loan cheaper than your finance and buy the car outright? Settle the finance. You will save the worry of the xs mileage, condition at handback, dealer interest rates and the car is yours to do as you please. Any benefits you had like "free" service pack will remain.
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