Fixed cost maintenance agreement/pcp mileage allowance

[andyvee]

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.

Exactly, if you are trading in the car is valued as it stands, so you take the risk of the trade in value against the residual.

 

You can't do that on a maintenance agreement, if you take it for the first service after 8 months they will say you should have only done 7,000 miles by now so you owe us xxx amount.

 

You have a cooling off period on any finance agreement of a month, and as you haven't taken delivery the best thing is probably to cancel the maintenance agreement.

As I said earlier, discuss it with your dealer and be honest about the mileage you expect to do.

[tigermad]

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.

That's a great idea. I will put a little extra away a month. Over 3 years I should be able to get a little deposit together but still hope I will have some equity to start me off again :-)

[tigermad]

Exactly, if you are trading in the car is valued as it stands, so you take the risk of the trade in value against the residual.

 

You can't do that on a maintenance agreement, if you take it for the first service after 8 months they will say you should have only done 7,000 miles by now so you owe us xxx amount.

 

You have a cooling off period on any finance agreement of a month, and as you haven't taken delivery the best thing is probably to cancel the maintenance agreement.

As I said earlier, discuss it with your dealer and be honest about the mileage you expect to do.

Thanks :-) gonna cancel the maintenance and keep the pcp as it is. Just save a bit per month to help with the next deposit just in case.

[andyvee]

PCP is great if you understand how it works.

 

VWFS aren't stupid - the GFV's are close to trade in values so that VWFS don't take the risk. That means you will be lucky to get £1k deposit on your next PCP deal.

 

So, if you have put in £3k now to get your monthly payments where you want them to be you need an additional £2k deposit in 3 years time to be in the same place.

[andyvee]

You do know 3 years free servicing is back on now? (excluding vRS)

 

You might be better off re-doing the deal at todays prices and getting the 3 year/30k servicing for free?

[Yogi-Bear]

the GFV's are close to trade in values so that VWFS don't take the risk. That means you will be lucky to get £1k deposit on your next PCP deal.

 

Trade-in values are a bit of a moot point anyway - the dealer could offer you the GMFV for your car just to clear the finance, but then a massive discount on a new car... or they could offer you loads above the GMFV, but that'll just come out of any discount he was going to give you.

 

The best way of doing it is - as with any car - to sell privately and then you'll get maximum value for the old car, and maximum discount on the new one.  However, that's more effort than a lot of people can be bothered with, and that's what dealers are counting on.

[andyvee]

Agreed, but the GFVs aren't a million miles away from trade in values without a huge discount off the up front price. 

 

Interestingly the GFVs on a L&K now are pretty much the same as the GFVs on an Elegance back in October, so I expect there are going to be quite a few people with absolutely no equity in 2 1/2 years time as the Elegance (and the vRS) were over valued to start with by VWFS and they have reduced the GFV's in the last 6 months.

[stevehg]

Variable servicing is every 18-19000 miles and collectively about £500 for first two, so given your mileage you would only pay ~£500 on variable servicing in 42 months.

[tigermad]

Variable servicing is every 18-19000 miles and collectively about £500 for first two, so given your mileage you would only pay ~£500 on variable servicing in 42 months.

Don't you need oil sensors installed at factory for variable servicing? My pdi is already happening so it's too late anyway I think. 3 services at my local dealer is around £500 anyway at current prices.

[markmi]

You can cancel the service maintenance plan at anytime and you can start one in time upto the car being 1 year old or 10,000 miles.

Why don't you change from maintenance to just service, that will half the cost of the plan and why do you need maintenance anyway ? Any defects etc will be covered be warranty, only extras covered are bulbs ( don't blow that's much and only cost a few pounds) wiper blades ( can be got off eBay for a tenner and you will on need one or two sets at most in 3 years) it also includes brakes, but you won't need in any in 3 years doing a total of 42k. My last Octavia I did 3 years and 62k ( ok I don't drive fast) and brakes had another 15k in them when I sold the car.

My service plan is 3 years and 25k a year and I pay £22.00 a month.

[markmi]

You can cancel the service maintenance plan at anytime and you can start one in time upto the car being 1 year old or 10,000 miles.

Why don't you change from maintenance to just service, that will half the cost of the plan and why do you need maintenance anyway ? Any defects etc will be covered be warranty, only extras covered are bulbs ( don't blow that's much and only cost a few pounds) wiper blades ( can be got off eBay for a tenner and you will on need one or two sets at most in 3 years) it also includes brakes, but you won't need in any in 3 years doing a total of 42k. My last Octavia I did 3 years and 62k ( ok I don't drive fast) and brakes had another 15k in them when I sold the car.

My service plan is 3 years and 25k a year and I pay £22.00 a month.

Oh the standard service only plan does also include the brake fluid at 2 years, so don't have to worry about that.

[tigermad]

Thanks markmi but I have priced the servicing and it's only 500 squid plus 49 for the brake fluid in total for 3 services so seems better without the contract at all tbh.

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[tigermad]

If I try and change to 15k and service only won't they wonder why I have only gone for 10k on my Pcp. Isn't the finance linked?

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[stevehg]

Don't you need oil sensors installed at factory for variable servicing? My pdi is already happening so it's too late anyway I think. 3 services at my local dealer is around £500 anyway at current prices.

  

No

If I try and change to 15k and service only won't they wonder why I have only gone for 10k on my Pcp. Isn't the finance linked?

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No

[TheWanderer]

Please don't shout at me my head's spinning here. 

 

I've got a contracted annual mileage on a PCP of 7,000 miles pa, due to a couple of long distance trips (already done 1), another is in September, I am going to be pushing it, right to the wire on that.

 

So, let me get this right!

 

I've had the car since November, so I'm out of cooling off period. That's OK.

 

But can I still increase the mileage band by say 1 or 2,000 miles by approaching VW financial services, with whom I believe this PCP is with? I don't mind paying a few quid more to ensure that I don't go over the current 7,000 limit.

[tigermad]

Please don't shout at me my head's spinning here.

I've got a contracted annual mileage on a PCP of 7,000 miles pa, due to a couple of long distance trips (already done 1), another is in September, I am going to be pushing it, right to the wire on that.

So, let me get this right!

I've had the car since November, so I'm out of cooling off period. That's OK.

But can I still increase the mileage band by say 1 or 2,000 miles by approaching VW financial services, with whom I believe this PCP is with? I don't mind paying a few quid more to ensure that I don't go over the current 7,000 limit.

You want to change the pcp mileage? is there a cooling off period then that lets you do this?

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[andyvee]

You can contact VWFS at any point and change your mileage and they will recalculate your payments. You can also overpay and they will either reduce your payments or term.

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[wantaskoda]

I took out a 3 1/2 year PCP at the highest mileage as I use the car for work.

 

In my new job I am currently doing 1000 miles per month less than I said on the PCP. I am hoping that this will have a positive effect when I decide to change the car.

 

The downside is that I am paying £50 per month for the service and maintenance plan as in my last car I had the timingbelt done after just over 2 1/2 years.

 

It is always swings and roundabouts with a PCP and servicng.

 

Good luck sorting it.

[tigermad]

Wonder how much 5k extra per year would be.

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[themanwithnoaim]

Have I missed something ? unless you're handing a car back nobody cares about the excess milage with regards to GFV, I've never seen a maintainance plan worth having, its gotta be at main dealer costs plus profit or they wouldn't sell it.

 

Cancel the maintainance plans and stop worrying.

[wantaskoda]

The service plan is worth having if you live in London as it is priced by Skoda and not the dealer. I used to drive all over the country, and therefore I could call around to find a cheap dealer, but now I don't do as much mileage. So, although I am paying £50 per month, with the mileage it covers, I will get the timing belt, and any pads done without having to worry about the cost.

 

If you are only doing 10-15k a year, then it is not worth it, especially with the free servicing you can get.

 

It is also important to me that as I do such high mileage that by having the service AND maintenance, I am more likely to get a loan car.

[TheWanderer]

You can contact VWFS at any point and change your mileage and they will recalculate your payments. You can also overpay and they will either reduce your payments or term.

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Thanks, that's good to know. 

[TheWanderer]

I've just had a word with them and apparently I cannot up the mileage mid term, however as themanwithnoaim has correctly said it & VWFS has said it doesn't matter too much if you go over the mileage mid term its the end mileage that counts. Phew! 

[andyvee]

Weird, as they told me you could the other day!

 

Have you registered on the skodafinance.co.uk website - you can manage some aspects of your agreement from there

[TheWanderer]

Yeah, that somewhat surprised me too. And no, I haven't registered.

 

I've noticed that there's two options when I was playing on there FCM & something else. 

 

Do I choose FCM or the something else option?