Hi there, please could someone advise?

I've recently ordered a vrs estate on the PCP scheme (first ever PCP deal I've ever done).

I've agreed a deal with a dealership etc with an agreed mileage of 20k miles / year but my commute circumstances might change in the not too distant future. My mileage may drop to as little as 9k miles / year. Would I be able to change my terms of my PCP deal mid-term? Obviously a lower mileage will mean higher GFV and / lower monthly payments but in reality is this allowed mid-deal?

Cheers

Why not set it at 15k from the off?

Or just leave it at 20k and when it comes time to change you'll have loads of equity in it to put to a new one

On the other hand, if you can afford the higher repayments for the 20k per year then you will have higher equity at the end of the term.

Best thing to do is speak to your dealer and or Skoda/VW finance.

All valid points. I'll have a word with my dealer just to know exactly what the options are / where I stand.

Cheers

I worked out that it made more sense to set mine at 10k and then just save some money if I do go over mileage, I don't have the maths to hand but if you do it you may well work out that you are about 1 or 2k better off just setting the PCP at 10K. Remember it's across the entire agreement not just per year, so at the moment you are saying you will do 60k over three years, fact is you might only do 40.

 

I wouldn't sink money into a car, you've no guarantee it'll be worth more than the GFV and you could end up sinking that money into it, better it's in your pocket and you can choose what to do with it when the time comes (imagine you actually end up giving the car back after the agreement is up!)

I've agreed a deal with a dealership etc with an agreed mileage of 20k miles / year but my commute circumstances might change in the not too distant future. My mileage may drop to as little as 9k miles / year.

 

My situation is the opposite.  I'm in the process of changing jobs, which may well include freelance consulting work.  I have no idea what my mileage will be next week, never mind in three years' time!  Last year I did 14,000, but that included a daily commute.  I have gone for 10,000 miles on the PCP and am hoping for the best, but prepared to be hit by excess mileage charges in three years' time.

 

All I need, now, is a delivery date (mine isn't being made to order, rather it's coming from UK stock, but I know not from where)!

I worked out that it made more sense to set mine at 10k and then just save some money if I do go over mileage, I don't have the maths to hand but if you do it you may well work out that you are about 1 or 2k better off just setting the PCP at 10K. Remember it's across the entire agreement not just per year, so at the moment you are saying you will do 60k over three years, fact is you might only do 40.

 

I wouldn't sink money into a car, you've no guarantee it'll be worth more than the GFV and you could end up sinking that money into it, better it's in your pocket and you can choose what to do with it when the time comes (imagine you actually end up giving the car back after the agreement is up!)

I totally understand what you're saying, but I definitely do at least 19 to 20k miles per year and have done for the last 6 six years! There is by no means any guarantee that my circumstances will change.

If I set the mileage much lower the GFV only goes higher anyway unless I stump up to get it lowered. Either way, you pay for it in the end. I may even buy the car at the end of the agreement, especially if my mileage significantly drops to say 8 or 9k per year. I probably need to be somewhere in the middle with the mileage, say 12 to 15k miles on my agreement. I'll have to have a think.

Hi to All, I'm in the opposite corner - I've ordered a new Octavia on a PCP (my first PCP too), but was dealer advised (in the presence of the finance director) to opt for a 5000 mile annual limit to keep monthly payments lower, despite explaining I will certainly drive 10,000 miles each year. They both said repeatedly that the excess mileage charge would be waived providing I go in for another Skoda on the contract completion (something I do plan on doing) - the charge would ONLY be levied if I hand the car back to the Skoda Finance people they say.

I would welcome comments on this "arrangement",  hoping I'm doing the right thing !

 

JKW

Hi to All, I'm in the opposite corner - I've ordered a new Octavia on a PCP (my first PCP too), but was dealer advised (in the presence of the finance director) to opt for a 5000 mile annual limit to keep monthly payments lower, despite explaining I will certainly drive 10,000 miles each year. They both said repeatedly that the excess mileage charge would be waived providing I go in for another Skoda on the contract completion (something I do plan on doing) - the charge would ONLY be levied if I hand the car back to the Skoda Finance people they say.

I would welcome comments on this "arrangement", hoping I'm doing the right thing !

JKW

What they say is true but the trouble is you could end up with negative equity at the end as you car could be worth less than is what's owed on it....

What they say is true but the trouble is you could end up with negative equity at the end as you car could be worth less than is what's owed on it....

Yes, true but nobody actually knows what this car will be worth in 3 or 3 1/2 years' time. It also depends on how much your mileage ends up going over your agreed deal. For example, if I set mine at 8000 miles / year but actually end up doing 20,000 miles per year then that is probably going to significantly affect the value come trade-in time. Whereas if I set it at say 18000 miles / year then I can save a bit of money per month without significantly affecting the value of the car at the end / come trade in etc. Also, the condition of the car has a massive bearing on the value / trade-in value aswell. Lots to consider and everyone will have their own personal circumstances.

Slightly off topic, I've had my VRS on a PCP, I presume it'll still be my name on the V5?

Edited 3 September, 201312 yr by Dalelfc89

Yup!

Yup!

 

Cheers