Due to covid I have barely been using my car since March last year and am now about 9k under my contract mileage after 15 months of a 36 month term (37500 miles predicted over three years). I wrote to the lease company last week to see if I could reduce the mileage over the rest of the term to reduce the price each month.

 

This morning they kindly wrote back to me and said that to reduce the mileage by 10000 (down to 27500 in total) over the remaining 21 months my PCH price would increase by £75 per month..... I was slightly surprised by this to say the least so gave them a call. Apparently they re-estimate the predicted value of my VRS at the end of the term with the reduced mileage and  they are now forecasting it will be worth £1575 less, even with 10k less on the clock than when I took out the deal. That suggests to me that they are predicting used car costs to drop significantly over the next year. Maybe I should write back to them and offer them peanuts to take the car off their hands now rather than them take a bath on it's resale in the future.....

 

 

I spoke to Skoda today about my own PCH car, similar story, very low mileage since March last year. I've managed to extend the two year deal, they were offering six extra months at the same monthly price but the way it seems to work is that they have added three months initially and then I have to extend it before that ends to get the six months extra. Your car would surely be worth more being a VRS model but in any case all the mark 3 cars are going to take a hit now that there is a mark 4 version out.

Agreed but as mine is a VRS Challenge which was effectively a run out special edition  model I assumed they’d factored in a mkiv arriving a few months later in its price. I think it’s sealed the fate of my wife’s car which I was going to buy in a few months when it’s pch ends. She can have my VRS instead as she is in the nhs so travelling all over for work anyway. 
 

think I’ll just use my motorbike for the once a week I leave the house now!

Used car prices are coming dowm massively now. An example is the mk3 Focus RS.  At one time you couldn't buy one for less than 34k used. Now they are dropping to 25k on the used market. The Octavia will never hold its value and companies will be adjusting their predicted prices to suit. 

I'd say it's not clear cut on used car prices, there is a shortage of used stock as people are hanging on to cars, that said, a Skoda is never going to hold its value unless you have something really in demand.

 

Anyway, I had a Karoq sportline on PCH, similar story to OP. VWFS not playing ball as lots of people are trying to return cars, so I got a dealer to buy me out of it without any penalty to me (for the above reason, very little nearly new used stock around). Bought a nice used Octavia VRS from them which I'll hang on to for a few years.

 

I always thought PCH was the best kept secret, until now! That said I'd be really gutted if I had a PCP.

On 13/01/2021 at 21:31, weyland said:

I'd say it's not clear cut on used car prices, there is a shortage of used stock as people are hanging on to cars, that said, a Skoda is never going to hold its value unless you have something really in demand.

 

Anyway, I had a Karoq sportline on PCH, similar story to OP. VWFS not playing ball as lots of people are trying to return cars, so I got a dealer to buy me out of it without any penalty to me (for the above reason, very little nearly new used stock around). Bought a nice used Octavia VRS from them which I'll hang on to for a few years.

 

I always thought PCH was the best kept secret, until now! That said I'd be really gutted if I had a PCP.

Still happy I have a pch, I can afford the car and assume my mileage will go back up at some point although not to the levels that’ll see me hit the max on my contract.

Obviously it’s a Skoda so not going to hang on to it’s value as well as some cars but because of the huge upfront discount the pch was good value anyway. A bit over £350 a month for a fully kitted out VRS challenge with towbar and virtual cockpit was still a couple of hundred less than the a6’s and 3 series I looked at when I got it. Just surprised they think it’ll go down by so much but as you say I guess lots of people are trying to hand them back.

 

will be interested to see what my wife’s Leon is worth when her pch ends in a few months.