PCP help!

[elah1940]

After some advice from anybody that's been on a PCP deal...

 

I'm about 17 months into a PCP deal on my Fabia on a 10k a year mileage limit.

This was my first brand new car and I am beginning to regret it due to having knocked it a few times and alloy damage from kirb scraping (partner's fault!) We are currently saving up some money to get the repairs done on the bodywork and additionally we have moved house and I know  the mileage will 100% go higher than the 10k allowance-probably by 5k a year

 

Question 1- If I voluntarily terminate or go til the end of contract, would they pay me anything for the car's current value? And if so would it decrease based on any damage etc?

Question 2-Do I pay excess mileage when voluntarily terminating? Currently I am about 500 miles over but the longer I keep the car, this will definitely rise.

 

Of course I know I could always keep the car...tempting because I am paying the lower road tax due to year of manufacture (£20 a year). If I get a newer version it'll be £150+ pa. Love the car, but made a mistake with picking black-should have gone for silver or white!

[SC03OTT]

1.  Nope. If you hand it back they’ll pay you nothing. Damage will likely decrease the cars value; yes. 

 

2.  Yep, if you hand it back and it’s over the contracted limit you’d have to pay the excess. The way around that is to buy the car at the three year point. Or you could sell it (getting the buyer to essentially pay the balloon for you). No excess charges are incurred that way.  Or trade it in for a new car as well actually.  They may offer you less than the balloon payment in which case you’d owe them money. 

Edited 15 June, 2018 by SC03OTT

[elah1940]

6 minutes ago, SC03OTT said:

1.  Nope. If you hand it back they’ll pay you nothing. Damage will likely decrease the cars value; yes. 

 

2.  Yep, if you hand it back and it’s over the contracted limit you’d have to pay the excess. The way around that is to buy the car at the three year point. Or you could sell it (getting the buyer to essentially pay the balloon for you). No excess charges are incurred that way.  Or trade it in for a new car as well actually.  They may offer you less than the balloon payment in which case you’d owe them money. 

Thank you for replying that's very helpful.

 

If I hand it back and any damage has decreased the value, presumably I will pay them for the repair costs?

[SC03OTT]

2 minutes ago, elah1940 said:

Thank you for replying that's very helpful.

 

If I hand it back and any damage has decreased the value, presumably I will pay them for the repair costs?

 

Yes. When you hand it back it’ll go to auction. There are guidelines on what damage is acceptable. If your damage falls out with those guidelines, you’re liable. 

[SC03OTT]

 

[horkin]

You could always take your car to a dealer and ask him what it would cost to get you out of your car and into another? Sometimes you'd be surprised at the deals some can offer you.

 

They would buy your car from you and pay off the balance, getting you out of the pcp and then quote you on the many no deposit (or low deposit) deals on another car.

 

It costs nothing to ask, just make sure you go reputable and don't get ripped off.

 

Harry.

[RickW]

My wife just traded in her 16 plate Citigo for a new one after 24 months into a 42 month PCP. It had been damaged repaired  twice and she fell out with it. She's only paying a little more for a better spec model in a metallic colour. The dealership were falling over themselves to get her into a new car. Just give it a try,there's nothing to lose.

PS do all the figures carefully if you choose to do this!

Edited 15 June, 2018 by RickW

[Leprejohn]

I'm currently trading in my fabia, they offered just over 7k for mine and I owe about another 900 on top which has got added to the finance of the new car. My car has some stuff marks and stuff on it which I don't think really mattered it isn't that bad if I'm honest. I would say get a settlement figure for the finance on it and go to another dealer and see what they offer you for it.

[SurreyJohn]

The mileage rate on Fabia can be low, 4-5p per mile, so extra 5000 miles might be £200.  If you buy the car at the end mileage is irrelevant on the PCP (although will affect resale value when do eventually sell it)

 

It may be worth asking you local Chips Away (or equivalent) for cost of repairs to bring car upto end of lease standard.  They specialise in doing the repairs (and charge less than might get hit for damage beyond fair wear and tear).  At least you then know who much to budget for fixing it to return it.

 

Edited 19 June, 2018 by SurreyJohn
Typo

[Panther_uk]

If this is PCP then the dealer will offer you whatever the market value is compared against how much finance you still owe on the car, sometimes this can work in your favour (my wife got offered 8.5K for her mk2 vRS and she only owed 7.5k on the finance, so walked away with a grand ! Likewise it can go the other way and you could end up owing them money.

The mileage if you hand it back I wouldn't worry about providing your below the limit agreed (I handed my last car back with 33k out of a 36k agreement with 6 months left to go), as long as your under the agreed mileage it's up to them to prove you would reach that mileage in the remaining.

 

SC03OTT is talking about personal leasing, this a whole different ball game and one where they will definitely charge you for any damage etc. and some of the charges can be quite hefty.

[sparckzero]

Interesting topic - I've recently started contacting dealers to see if I can switch from a my manual Fabia into a DSG one - ongoing medical issues make it unpleasant to use the clutch in traffic, so I'm seeing what's on offer. I'm fortunate in that I have no damage and am currently under the mileage rate.

 

I only got the car last September - I'm really happy with it, but a DSG would make things so much easier for me. I'll report back with my experience!