If you pay the balloon payment at the end of a PCP, essentially buying the car outright, are you still liable to pay the excess mileage charges in the contract if you do more than the agreed?

No as the balloon payment is to buy out the contract. The excess mileage is because the car has depreciated more than you have paid in depreciation in monthly payments. So you would only be liable for any charge should you give the car back.

If you pay the balloon payment at the end of a PCP, essentially buying the car outright, are you still liable to pay the excess mileage charges in the contract if you do more than the agreed?

You shouldn't have to, but I have heard of garages telling customers that they do still need to pay the excess, presumably to try and push them towards rolling the arrangement over onto a new car.

Is this on a vehicle you already have, or one you are looking at? If the latter, get it it writing just to remove any doubt or dispute.

It's a vehicle I have...

The situation is this - for many years I've only ever done about 10-15k miles. Last November I took out a PCP loan on a MK2 Fabia VRS, and declared an annual mileage of 12k. I have now started a very different job role, just a 6 month contract at the moment but hopefully longer, which will involve quite a lot of national travel.

In my contract it seems to suggest that the excess mileage above the 12k can be checked and requested annually, and this will then be deducted from the final excess mileage at the end of the contract. It's quite vague, it's worded and/or.

This is confusing as I would have expected the excess mileage to only be relevant if giving the car back at the end of the term, instead of paying the balloon payment to purchase. This annual mileage limit suggests I may be asked to pay the excess mileage even during the hire period? Is that right? How will they check mileage?

I am a little concerned as there is potential for excess mileage well above the 12k a year if I do carry on with this work past the 6 months. I get a mileage allowance of which just over 50% is used up by fuel so I suppose to be safe I just need to stash away the rest and not be tempted to treat it is extra income. The permanent contract on the job I'm doing usually has a company car entitlement, so I'm hoping if I carry on with it I'll be entitled to that which will solve the problem.

Also, to change cars during a PCP contract am I correct that you'd have to terminate one contract (at great expense) and start a new one? The Fabia is a lovely car, but something like a diesel Octavia would be much more suitable to big miles.

Give your dealer a call, as they might be able to move you out of your pcp into another car.

Most policies charge 4.4 pence per mile over the yearly allocated amount, in my case it is 10,000 miles a year.

The excess mileage shouldn't be an issue unless you have a maintenance plan included or intend to trade in or hand back the car.

Excess mileage charges only apply if you give the car back, trade-in and buy out are not impacted.

As said above, if you pay the final payment you won't pay any extra mileage charges. I sell cars so know a little about it.

I know I didn't pay the mileage charges.

Most policies charge 4.4 pence per mile over the yearly allocated amount, in my case it is 10,000 miles a year.

Are you sure about this?

I thought it would have been far higher

Regards all

John

Sent from my iPhone using my thumbs

Are you sure about this?

I thought it would have been far higher

Regards all

John

Sent from my iPhone using my thumbs

BMW are charging 4.*p to my sister in law who's handed back her mini a year early.

I bought my Octavia at end of a PCP and had gone over the contracted mileage. I was never asked to declare how many miles I'd done at any point during contract or when buying the car.

My salesman told me if you go over the mileage and trade the car in or buy it at the end it doesn't matter, only costs you if you just hand the car back. That was for my PCP on my Fabia

The rate on my contract is 9.6ppm and the salesman asked me what mileage figure I wanted to declare as it impacted on the final value.

They always over estimate the mileage, so come part ex it is worth more than the GFV and gives a better deposit for the next car

the mileage charge on the Octavia vRS is 7.2p inc VAT.

My job role changed just after I bought the Mazda, resulting in doing far less than the declared milage. Reckon it cost me quite a bit as , if I had known before hand, my monthly fee would have been £30/month less.

You win some you lose some. That's life.