Fixed cost maintenance agreement/pcp mileage allowance

[tigermad]

Hello. Have any of you taken this out and gone over the mileage excess by quite a bit per year? For example 10000k allowance but actually 14000k. If so do they definatly make you pay the mileage excess fee?

I have just taken out a pcp agreement with a bit less mileage that I will actually use to keep the payments low. I am hoping to swap to a another car at the end of the agreement or just before so hopefully the excess mileage for the pcp part won't come into play.

Have I made a mistake keeping my mileage low?

Edited 7 June, 2014 by tigermad

[Yogi-Bear]

This has been done to death... and a ) you should ask the dealer this sort of question before you sign a finance agreement; b ) the dealer should be explaining all of this anyway.

 

You only pay the excess mileage charge if you hand back the car at the end of the agreement.  If you buy the car, then you pay the GMFV.  If you part-ex the car, then it should be worth more than the GMFV - but if you've done more mileage than the agreement, it won't be worth quite as much and so you won't have as much deposit for your next car.

Edited 7 June, 2014 by WiggosSidsburns

[tigermad]

This has been done to death... and a ) you should ask the dealer this sort of question before you sign a finance agreement; b ) the dealer should be explaining all of this anyway.

You only pay the excess mileage charge if you hand back the car at the end of the agreement. If you buy the car, then you pay the GMFV. If you part-ex the car, then it should be worth more than the GMFV - but if you've done more mileage than the agreement, it won't be worth quite as much and so you won't have as much deposit for your next car.

Thanks but I am more interest in the fixed service agreement side. I know all about the pcp part. I didn't even know until today the fixed service agreement has a pence per mile excess if you go over. So that's 2 lots of excess! Edited 7 June, 2014 by tigermad

[Yogi-Bear]

As I understand it, the service agreement expires at the end of 3 years / xx miles (whatever you've agreed).  So if you do more miles, your agreement will end before the 3 years.

 

e.g. If you have 3 years / 30,000 miles, then it will usually include 3 services - one after each 10,000 miles.  Therefore, if you do 15,000 miles per year, you'll end up with services after 8 / 16 / 24 months - rather than 12 / 24 / 36 months.

Edited 7 June, 2014 by WiggosSidsburns

[tigermad]

As I understand it, the service agreement expires at the end of 3 years / xx miles (whatever you've agreed).  So if you do more miles, your agreement will end before the 3 years.

That's ok if I get all 3 services still in the 30k. I guess I would need another major one before the pcp is up in 41 months, if I go over.

[tigermad]

Think I'm going to have to call the dealer tomorrow. What I don't understand is i will be paying £600ish for 41 months of servicing based on 35000 miles. So that's 2 basic and 1 inspection service. All with parts if required. That sounds fine to me (although don't think I would need many extras that wouldn't be covered by the warranty being a new car) Why do have have to pay 4.8p per mile for any miles over 35000? Say for instance I went for example 4000 miles per year over. That means I will pay £192 per year extra totalling £672 for the term. So £1272 in total. Surely this is ludicrous. I might as well just save up for the service every time in that case and not have bothered with the contract?

[Yogi-Bear]

Where does the 4.8p per mile come into it?  I'm pretty sure that excess mileage charges are only to do with the PCP contract.  The servicing / maintenance contract is completely separate, and as I said above, just expires after the agreed mileage.

 

And, as I also said, you only pay the excess mileage if you hand the car back at the end of the term.  Under no other circumstances do you pay it.

[tigermad]

Where does the 4.8p per mile come into it? I'm pretty sure that excess mileage charges are only to do with the PCP contract. The servicing / maintenance contract is completely separate, and as I said above, just expires after the agreed mileage.

And, as I also said, you only pay the excess mileage if you hand the car back at the end of the term. Under no other circumstances do you pay it.

It's a separate agreement for the maintenance. I'm worried sick now I will. have these extra expenses for the servicing. Don't mind the pcp part of the deal and what that entails but why should I pay 2 different lots of mileage excesses! 7.2p for the pcp (which I don't intend to pay) and 4.8p for the service part.

Wish a dealer on here could clarify this for me. :-(

Edited 7 June, 2014 by tigermad

[Yogi-Bear]

What service plan have you bought, out of interest?

 

http://www.skoda.co.uk/owners/service-and-maintenance/service-plans

 

It's only £479 for a 3 year / 30,000 mile plan, and the notes at the bottom basically say that you won't get all the servicing if you do the 30,000 miles in less than 3 years.

 

EDIT: Ah, guess you've gone for this - http://www.skoda.co.uk/finance/personal-finance/fixed-cost-maintenance - hence the different price and the mileage concerns...

Edited 7 June, 2014 by WiggosSidsburns

[Keitht]

If you have a car on pcp, with no service contract and you plan to do 14k per year can you go on variable servicing? if you then chop it in at 3 years and 42 k you should be able to get away with 2 services, is this allowable?

[andyvee]

Moral of the story - if you go for PCP and fixed price servicing deals be realistic about your mileage, or have a very good understanding of the contract you are entering in to.

 

At a guess, you have entered in to a 3 year servicing deal, based on an annual mileage. So, if your mileage is higher, you need more services, which costs more. Just get your 3 x 10k services under the plan , then pay for anything else out of your own pocket.

 

Have you included wear and tear items in the plan such as tyres?

[tigermad]

What service plan have you bought, out of interest?

 

http://www.skoda.co.uk/owners/service-and-maintenance/service-plans

 

It's only £479 for a 3 year / 30,000 mile plan, and the notes at the bottom basically say that you won't get all the servicing if you do the 30,000 miles in less than 3 years.

It's the fixed cost maintenance agreement.

[andyvee]

It's the fixed cost maintenance agreement.

Is that on top of a PCP deal, or are we talking about a leasing arrangement?

[tigermad]

Moral of the story - if you go for PCP and fixed price servicing deals be realistic about your mileage, or have a very good understanding of the contract you are entering in to.

 

At a guess, you have entered in to a 3 year servicing deal, based on an annual mileage. So, if your mileage is higher, you need more services, which costs more. Just get your 3 x 10k services under the plan , then pay for anything else out of your own pocket.

 

Have you included wear and tear items in the plan such as tyres?

No tyres. Just service and maintenance. But even if the extra mileage equated to 1 more service then it's not over £600 for that one more.

[tigermad]

Is that on top of a PCP deal, or are we talking about a leasing arrangement?

It's along side the pcp deal.

[andyvee]

No tyres. Just service and maintenance. But even if the extra mileage equated to 1 more service then it's not over £600 for that one more.

But you have included maintenance, which includes other items above a basic service.

 

I can't advise you on your best course of action, speaking to VWFS to clarify might be your best thing to do at this point. If you are within 28 days you may be better downgrading to service only.

[tigermad]

But you have included maintenance, which includes other items above a basic service.

I can't advise you on your best course of action, speaking to VWFS to clarify might be your best thing to do at this point. If you are within 28 days you may be better downgrading to service only.

Sorry what do you mean I have included maintenance? Even if I downgrade the mileage still applies. I will still be paying over £1000 for the service a agreement even if I take the maintenance off. I can't see anywhere on skodas site that says mileage costs will be paid during the service agreement. Just that some of the things may not be included if you go over.

I haven't taken delivery yet. Don't know what to do now.

Edited 7 June, 2014 by tigermad

[andyvee]

Sorry what do you mean I have included maintenance? Even if I downgrade the mileage still applies. I will still be paying over £1000 for the service a agreement even if I take the maintenance off. I can't see anywhere on skodas site that says mileage costs will be paid during the service agreement. Just that some of the things may not be included if you go over.

I haven't taken delivery yet. Don't know what to do now.

You said service and maintenance!

 

There are three levels:

Service

Service & Maintenance

Service, Maintenance & Tyres

 

If you haven't taken delivery yet then the agreement hasn't started, so you can change your mind.

 

Speak to your dealer and tell them you deliberately misinformed them  about your annual mileage to keep your payments low and take it from there.

[tigermad]

You said service and maintenance!

There are three levels:

Service

Service & Maintenance

Service, Maintenance & Tyres

If you haven't taken delivery yet then the agreement hasn't started, so you can change your mind.

Speak to your dealer and tell them you deliberately misinformed them about your annual mileage to keep your payments low and take it from there.

Thanks but if I signed the finance and service agreements aren't I stuffed now? I don't want to be credit checked again if I change anything. :-( I assume they have already been sent off. Edited 7 June, 2014 by tigermad

[phsroberts]

I've just been through this with VWFS and ended up cancelling mine.

You will have to pay the excess mileage charge on the FCM agreement before they will service your car EVEN if the increased mileage doesn't result in you getting more services...it's a right con

You can cancel at any time, with 28 days notice. No penalty is payable, but they won't refund payments already made.

[tigermad]

Looks like I may be able to change my mileage?

https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/manage_agreement/request_changes/amending_your_mileage.html

But then although I will be borrowing the same my monthly payments will go up I assume. Don't know if skoda finance is the same.

Oh looks like it's just the maintenance contract or hire purchase not pcp

https://www.skodafinance.co.uk/content/sites/skoda/skodafinance_co_uk/en/private_customers/manage_your_agreement/request_changes_to_your_agreement/amending_your_mileage.html

Edited 7 June, 2014 by tigermad

[tigermad]

I've just been through this with VWFS and ended up cancelling mine.

You will have to pay the excess mileage charge on the FCM agreement before they will service your car EVEN if the increased mileage doesn't result in you getting more services...it's a right con

You can cancel at any time, with 28 days notice. No penalty is payable, but they won't refund payments already made.

So if I cancel mine I can just go in a 10k, 20k and 30k and not worry about any excesses. That way I can save the money up per month and have it ready for the services anyway.

[phsroberts]

So if I cancel mine I can just go in a 10k, 20k and 30k and not worry about any excesses. That way I can save the money up per month and have it ready for the services anyway.

Yes, you just pay for the service as and when. It also means you can haggle a little on the service cost.

They will also let you increase the mileage if you wish, but it increases the cost by about the same as the excess mileage charge.

[tigermad]

Yes, you just pay for the service as and when. It also means you can haggle a little on the service cost.

They will also let you increase the mileage if you wish, but it increases the cost by about the same as the excess mileage charge.

Thanks. Will try and cancel the service agreement tomorrow. Hopefully they will let me.

Maybe I will try to do something about the mileage on the pcp. It's swings and roundabouts though. I will probably end up paying about £17 extra per month if i can get it increased to 15k but if I do another pcp at the end I have lost that money. Whereas if I leave the pcp as it is I will have the extra mileage but it shouldn't matter if I do another pcp.

[Yogi-Bear]

Maybe I will try to do something about the mileage on the pcp. It's swings and roundabouts though. I will probably end up paying about £17 extra per month if i can get it increased to 15k but if I do another pcp at the end I have lost that money. Whereas if I leave the pcp as it is I will have the extra mileage but it shouldn't matter if I do another pcp.

 

If you don't change the PCP, you will end up with less equity in the car (value less GMFV), but you will pay less per month.  If you do change the PCP, you will end up with more equity, but you'll pay more per month (so you shouldn't lose the money either way).  Simplest thing for you to do would be to leave the PCP as it is, put a little aside each month if you want to for additional money for the deposit on the next car, and either change the mileage on the maintenance agreement or just cancel it.

Edited 7 June, 2014 by WiggosSidsburns