Excess Mileage Charge

[Banjaminion]

When I ordered our Octavia (PCP) I based it on 6,000 miles per year, a change of circumstance means I am going to exceed this probably by about 21,000 (7.2p per mile excess) miles over the 42 month contract. Not the end of the world as I intend to keep the car at the end of the lease.

 

What is the most you have had to hand over due to exceeding the agreed annual mileage?

 

PS its a slow Monday

[philbes]

£1,512 is a quite an extra cost.

[Auric Goldfinger]

When I ordered our Octavia (PCP) I based it on 6,000 miles per year, a change of circumstance means I am going to exceed this probably by about 21,000 (7.2p per mile excess) miles over the 42 month contract. Not the end of the world as I intend to keep the car at the end of the lease.

 

What is the most you have had to hand over due to exceeding the agreed annual mileage?

 

PS its a slow Monday

 

The milage won't come into play as  you state you intend to keep the car.

 

Milage only applies if you hand the car back

 

Disclaimer:-  I think

[AlleyCat`]

The milage won't come into play as  you state you intend to keep the car.

 

Milage only applies if you hand the car back

 

Disclaimer:-  I think

 

That's what i thought too.

Although I've never had to test that belief in reality.

[pipsyp]

Correct.....you pay the baloon at the end to keep the car excess mileage does not come into play...only if you hand back to VWFS.

It could however affect the cars residual value depending how much you go over if you choose to sell/PX the car before the end of term which could leave you with negative equity/bigger negative equity than you may have had otherwise.

Its all a bit of a game really....I went from doing 11-12k miles/year on a 10k per year deal to 25/30k.....my only option was to sell our 2nd (older) car, bequeith the car to my wife who does next to no miles per year and get a company car....not ideal as I am continuing having to pay for a car that I was funding with a car allowance which I no longer get and now have to pay tax on a company car.....but it was that or find 4k to get out of the car!

[Banjaminion]

I was just wondering the most anyone has had to pay in terms of excess mileage when they hand a PCP car back, most if they exceed it to some extent would pay the balloon and keep the car I assume.

[GoneToBeemer]

Fairly certain you can change your lease / PCP payments to reflect a change in mileage (only if it's going up). if you know you're going to be doing a lot more miles, may be worth calling VWFS to see if they can help.

[pipsyp]

I was just wondering the most anyone has had to pay in terms of excess mileage when they hand a PCP car back, most if they exceed it to some extent would pay the balloon and keep the car I assume.

I stood to have to pay something in the region of £3.6k....having estimated that due to change in circumstances I was likely to exceed my agreed mileage by circa. 50k miles...a ridiculous amount.

I was in circa £4k neg equity....I was neither going to throw 4k at the car to make it go away or be prepared to stump up loads of money at the end in excess mileage (with that mileage it'd not been worth much anyway and would have likely left me with a finance shortfall of reasonable proportions anyway) so that set of circumstances rather forced my hand.

Also i wouldnt likely pay the balloon to keep it at the end of the term as at 3.5 years old its almost certainly not going to be worth £10.3k.

[decuk]

I could be in the same position if I get a job offer. 10,000/yr. Had car 18mths and done 17,000 miles. I was OK until I stopped working 4 months ago and started using it more. So I need to use our other car more. Working on the idea that a month on holiday out of the country will help the balance a bit. However the possible job is over 40 miles/day which will make it worse.At the time of purchase I was told it wouldn't matter if I did 10,000 miles more than planned. Only as already said here the finance company grab it back. But that won't happen.

[glosrich]

If you contact VWFS skoda finance you can adjust the mileage and pay more, if you dont intend to buy it.

[the_minch]

Remember if you voluntarily terminate your agreement once you have paid 50% of the amount borrowed you do not have to pay any mileage excess and the car only needs to be 'roadworthy'.

[pipsyp]

Remember if you voluntarily terminate your agreement once you have paid 50% of the amount borrowed you do not have to pay any mileage excess and the car only needs to be 'roadworthy'.

V true but sadly in my case the 50% mark only hits around month 38/39 of my 42 month deal....I may just as well keep the car and hand back for all the hassle the VT process will likely be.

For someone who paid a shat load of deposit, that point will of course arrive sooner in the term.

[silver1011]

Remember if you voluntarily terminate your agreement once you have paid 50% of the amount borrowed you do not have to pay any mileage excess and the car only needs to be 'roadworthy'.

 

Really?

 

So you could set the payments based on 5,000 miles per year, then do 50,000 miles per year and chuck the keys back after paying off only half of the car?

[andyvee]

Sorry guys, read your Ts & Cs, if you VT on a PCP they pro rata the mileage, and excess mileage charges still apply.

Admittedly, this is odd, as if you bought the same car on 5yr HP you could VT at 50% and mileage doesn't come in to it. Monthly payments would be similar as well.

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[SurreyJohn]

Sorry guys, read your Ts & Cs, if you VT on a PCP they pro rata the mileage, and excess mileage charges still apply.

Admittedly, this is odd, as if you bought the same car on 5yr HP you could VT at 50% and mileage doesn't come in to it. Monthly payments would be similar as well.

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Not odd, as a PCP is a rental (with option to buy), HP is a buy so you have committed to the car and the residuals don't affect the finance company as they wont be getting it back.

With PCP you can usually escape the mileage clause by opting to buy then selling it separately. Of course you need to sell it for more than the cost of the option otherwise your out of the money.

However if HP is terminated early or car is repossessed then separate clauses apply. You may well discover you have to make good any shortfall, read the smallprint in the agreement.

[pipsyp]

Not odd, as a PCP is a rental (with option to buy), HP is a buy so you have committed to the car and the residuals don't affect the finance company as they wont be getting it back.

With PCP you can usually escape the mileage clause by opting to buy then selling it separately. Of course you need to sell it for more than the cost of the option otherwise your out of the money.

However if HP is terminated early or car is repossessed then separate clauses apply. You may well discover you have to make good any shortfall, read the smallprint in the agreement.

Makes sense...with HP finance repo the financier will look to auction the car for fair market trade value.....that said as VT is there to protect the consumer Id wager the financier would have no comeback on the consumer if the car fetched less than was owed at auction...the financier would just have to swallow it. Edited 22 January, 2016 by pipsypreturns

[the_minch]

From my experience with Volkswagen Finance (who also finance Skoda) I can confirm the VT process was very easy and there was no excess mileage charge.

My own example and still have all communication with vw finance to confirm this.

My Volkswagen was nearing the 50% mark and I wanted to go back to Skoda. I phoned VW finance and found out when my 50% was going to be up on a PCP deal and was pleasantly surprised I had only to pay part of my following months payment and it would be 50%. I wrote to VW finance, using the standard template available online and I got it through this site. I got a phone call a week later to ask for my part payment to make it up to 50% and to arrange collection. Collection was made and this was very quick and easy, the person checked over the car to make sure it was road worthy and drove it away.

The dealer I was buying my Skoda from then arranged transport and a courtesy car till my car was ready.

I never had to pay any excess mileage charge even though I was over by about 10k miles as there is a clause on the contract that states that they can not charge for mileage and in that clause it also says that the car only needs to be roadworthy.

Overall the VT process was very quick, very simple and as VW had given me a promotional deposit meant I could do it earlier than expected,

[andyvee]

How long ago was this?

I had a look at the clause relating to VT on my PCP agreement and it states they will pro rate the mileage allowance and charge for any excess. I'll dig out the wording at the weekend.

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[the_minch]

This was back in September

[the_minch]

The agreement was taken out before September probably just over the two years prior and my new agreement has the clause on it as well.

 

From VWFS:

 

"With reference to the level of good working order required for the vehicle it includes there should be no cracks on the windscreen, the tyres should be safe to drive on and not bald and also the vehicle should be working and is driveable on the road. I can also confirm that after a discussion with British Car Auctions they fully confirmed there will be no inspection carried out on the vehicle when it is collected and the only requirements are the ones mentioned previously. There will also be no mileage charge on the vehicle with a voluntary termination on an agreement." (VWFS, October, 2015)

[andyvee]

Just checked the wording on mine and there are two contradictory clauses.

The clause on VT states that once you have paid 50% of the total agreement you can hand back and do not have to pay any more.

The clause on Excess Mileage says that if the agreement is terminated early then pro rata excess mileage charges will apply.

I would hope that VT would override the Excess Mileage charge.

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[Auric Goldfinger]

When handing a car back under the VT clause (50%) paid.

 

" Does it affect your credit rating and can you get another PCP at a later date."

[andyvee]

No it doesn't affect your credit rating, you are exercising one of your rights that are part of the agreement.

You can take another PCP straight away.

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[FlyingGecko]

When handing a car back under the VT clause (50%) paid.

 

" Does it affect your credit rating and can you get another PCP at a later date."

Why do you think it would? You're not breaching any of the T&Cs, or defaulting, are you?

[the_minch]

No it does not effect your credit score, it appears as VT as a statement of fact but it has no effect. Yes you can get new finance straight away, I did. VT with Volkswagen Finance and a week later I had a new agreement with Volkswagen Finance.

The VT clause overrides the other clause as it is set down in the statute books if you have paid 50% on any finance agreement you can hand goods back without nothing more to pay.