Hello all,

we bought our Kodiaq(PCP) on DD/MM/2019 with L miles as a annual limit. How is the mileage checked at the end of the annual period ?

Do we need to go to service on DD-1/MM/2020 to check if we went over L limit  ?

Does anybody know what is the procedure ?

I'm guessing that they are only really interested in the mileage at the end of the PCP period as that is when they receive the car back ( unless you pay the final payment, in which case they won't care).

 

The annual limit would come into play if you failed or chose not to keep up the payments and return the car early.  Again there would be a penalty payment ( is it around 10.8p per mile?) if you were over the designated mileage.

 

In terms of annual checks otherwise there aren't any on other vehicles and motorbikes I have had on a PCP...

Why have you hidden the dates and mileage?

 

Let's assume you're on a 3 year PCP with a 10,000 mile annual limit, so a 30,000 mile limit over the full term of the plan. 

 

You can do as many or as few miles as you want between the start and end date of the plan, as long as when you hand the car back it hasn't exceeded the 30,000 miles. You can do the full 30,000 miles in year one if you wish, but you'd then either have to park the car up for two years, pay the excess mileage charges when handing the car back, or pay the balloon payment and buy it outright.

 

Edited 5 December, 20196 yr by silver1011

The limit only applies at end (and is irrelevant if you buy it)

 

For any other hand back date it is pro-rated over time

So if hand back month 35 instead of month 36 limit will be adjusted by 35/36ths etc

To an extent it’s also irrelevant if you trade in as well. You won’t get a bill for excess mileage. Your trade in value may be effected though which is what I mean by its irrelevant to an extent. 
 

Only if you hand the car back do you need to think about excess mileage bills (and damage bills). 

On 05/12/2019 at 09:10, SurreyJohn said:

 

 

For any other hand back date it is pro-rated over time

 

An edge case but...if you carry out a Voluntary Termination of the finance agreement then the mileage of the car is irrelevant.  The finance company/underwriters cannot chase the customer for any costs related to mileage, pro-rata'd calculations, etc.  You could terminate at month 24 and have covered more mileage than you committed to on a 36 month contract and nothing can be done about it. 

On 05/12/2019 at 08:58, silver1011 said:

Why have you hidden the dates and mileage?

 

Because they are not important. It was important to operate it with X-1 (the day before), X+1 (the day after) tec

Fair enough, it just made it harder to read / understand, at least for me.

3 hours ago, penguin17 said:

An edge case but...if you carry out a Voluntary Termination of the finance agreement then the mileage of the car is irrelevant.  The finance company/underwriters cannot chase the customer for any costs related to mileage, pro-rata'd calculations, etc.  You could terminate at month 24 and have covered more mileage than you committed to on a 36 month contract and nothing can be done about it. 

 

They can't chase you in this circumstance for extras on the terminated contract,

but they could choose not to let you have another deal with them (which is a commercial decision their end), or only offer a deal that allows them to recoup some money

 

 

Yeah, I'd heard VT'ing (voluntary terminating?) a finance deal does not adversely affect your credit rating / score, but is visible on your credit record.

 

This information is then visible to finance providers on any future credit applications, who for obvious reasons may then choose not to lend / approve you for the finance.

34 minutes ago, silver1011 said:

Yeah, I'd heard VT'ing (voluntary terminating?) a finance deal does not adversely affect your credit rating / score, but is visible on your credit record.

 

This information is then visible to finance providers on any future credit applications, who for obvious reasons may then choose not to lend / approve you for the finance.

It's a process put in place to protect the consumer so really shouldn't be damaging as that would defeat the object of the process. Apparently finance companies hate it and do try to  'bend the rules' by scaring customers into thinking they'll end up with a damaged credit report/file etc but there's an interesting blog/forum post from Experian (or one of the other big credit agencies) which states that in general it shouldn't have any adverse, long-term effects on your credit score.

 

 

Definitely no affect on your score, that's how I think they get away with it, your score remains intact, but anyone viewing your record can see that you've VT'd finance in the past, and use that rather than your score to make their decision on whether to lend or not.

 

Once you've VT'd a couple of times then they see it as you playing the system, rather than using it for its real intention.

 

Who knows for sure, I'm only going on hearsay from what I've read online, I've no personal experience.

having just VT'd my range rover sport i've done a lot of research into it and spent time extensively reading forums in particular legal beagles. 

don't be fooled by the myth if you VT they won't come after you for excess miles - they will, and even if you VT early they will pro rata the mileage down. 

whether you have the balls to dispute it and go through the courts is a personal choice, but they will attempt to come after you for it. 

 

also re credit file it leaves a 'neutral' marker on the file showing it's settled, which is neither positive nor negative. 

 

VT seems to be no issue. PCP seems to be a good choice. My son has VT’d a SEAT Leon FR and a Volvo V40 consecutively,  with no real issues, he was  charged <£20  for excess mileage on his Volvo after an initial gloomy dealer assessment. They simply collected both cars and he got good deals each time. Now paying about  £330 a month for a loaded V60 T5, which  seems to be less than than the depreciation if you bought it after 24 months. 

As above, I think it’s only the final figure that counts at the end of the lease period.

 

I have exactly 4 months till the end of my deal so will be carefully counting the remaining 3,301 miles 😀

 

 

 

 

 

 

 

 

 

 

NOT!

This is the wording on a recent Skoda PCP - In theory you should pay any excess mileage annually - but as above - they really only check when the agreement ends whether early or on time.

 

For VT - you still have to pay mileage - or atleast my daughter did with her BMW.

 

It leaves a Settled mark on your credit file - this is not settled early or late - just settled... so no impact

 

 

 

 

 

P.S I had no issue getting new pcp after VT’ing the previous motor! 

I was also ‘let off’ £100 worth of ‘excess damage’ (wheel scuffs)