Excess mileage on a PCP

[RickW]

Has anyone had to deal with excess mileage on a PCP agreement and how did it work out for you?

[macamx]

If you have already paid 50% or more of the total amount of the agreement then just exercise your rights under the "Sale of Goods Act" and VT (voluntary terminate) the agreement.

 

Geoff.

[RickW]

The reason I ask is that my wife has a pcp on her Citigo and in the first year will do about 9000 miles instead of the agreed 8000 miles. Just bothered about what happens at the end of the pcp when it's 3000 miles over?

[malcster]

Is that for definite 

On our last roomster that had 12 k allowance and the first 10 months I did nearly 14k started to panic but the following 10 months  I only did another 5k 

 

Your circumstances may change and mileage may drop if it doesn't then before you reach the limit see about exchanging the car before the lease ends 

[RickW]

15 minutes ago, malcster said:

Is that for definite 

On our last roomster that had 12 k allowance and the first 10 months I did nearly 14k started to panic but the following 10 months  I only did another 5k 

 

Your circumstances may change and mileage may drop if it doesn't then before you reach the limit see about exchanging the car before the lease ends 

No it's not for definite,I'm just basing it on her mileage now. I've managed to keep my Fabia under the agreed 10,000 miles.

[AMD87]

I bought my fabia in October last year est 10k a year and I've managed that in 3 months, my final payment is only £340 so will probably be cheaper to buy it outright at the end than pay the excess. 

[vc-10]

In the agreement you signed there will be something saying how much you pay per excess mile. You can either VT it, pay the extra and hand the car back, buy the car for the agreed amount (at which point of course the mileage is irrelevant), or trade it in. At which point the dealership will look at the vehicle and its condition, and see what it's worth.

[RickW]

4 hours ago, vc-10 said:

In the agreement you signed there will be something saying how much you pay per excess mile. You can either VT it, pay the extra and hand the car back, buy the car for the agreed amount (at which point of course the mileage is irrelevant), or trade it in. At which point the dealership will look at the vehicle and its condition, and see what it's worth.

Thanks for making that clear!

[bluecar1]

normally the excess mileage charge only comes into play if you VT and walk away,

 

if you buy it at the end of the agreed period you only pay the GMFV (balloon payment) regardless of mileage

 

if you part ex it the dealer will value the car and asked for an up to date settlement figure, if the part ex don't cover the outstanding, you can either VT (if far enough through PCP) or put some cash into the deal to cover the shortfall and a bit of deposit

[Jeffchiz]

I wouldn't even worry about it. My excess mileage charge is about 4p... over 3k miles that would come out at £120

[macamx]

16 hours ago, bluecar1 said:

normally the excess mileage charge only comes into play if you VT and walk away,

 

 

Just to clarify, I VT'd and they tried to charge "excess Mileage" told them to go away.

 

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

[Gripper]

On 02/02/2017 at 14:57, AMD87 said:

I bought my fabia in October last year est 10k a year and I've managed that in 3 months, my final payment is only £340 so will probably be cheaper to buy it outright at the end than pay the excess. 

Are you saying your balloon payment is only £340?

[AMD87]

4 minutes ago, Gripper said:

Are you saying your balloon payment is only £340?

Yep

[Gripper]

Bluecar1 is unfortunately wrong, as macamx said, you don't have to pay the excess mileage if you VT. The only circumstance that you will be charged the excess is if you hand the car back after your agreed full term and walk away. The best thing to do if you are worried is to wait till your settlement fee matches the trade in value of your car and change then, with no worries about excess mileage. I wouldn't worry about it to be honest, if you were doing twice the mileage or something yeh, but not for 3000 miles. 

[Gripper]

5 minutes ago, AMD87 said:

Yep

It must have been a weird pcp deal. 

[RickW]

9 hours ago, Gripper said:

Bluecar1 is unfortunately wrong, as macamx said, you don't have to pay the excess mileage if you VT. The only circumstance that you will be charged the excess is if you hand the car back after your agreed full term and walk away. The best thing to do if you are worried is to wait till your settlement fee matches the trade in value of your car and change then, with no worries about excess mileage. I wouldn't worry about it to be honest, if you were doing twice the mileage or something yeh, but not for 3000 miles. 

 I'll let my wife know,she's been worrying about it!