Viewing 21 posts - 1 through 21 (of 21 total)
  • PCP milage exceedance – avoidance or suck it up?
  • Kryton57
    Full Member

    I’m over my 8000pa which means every trip is costing me an extra 8p per mile. Currently predictions means I’d owe £800 at the end of the (3 year) term with 10000 extra miles on e clock – yes yes i know it’s my fault entirely.

    Is it just a case of shrugging my shoulders and sucking it up? What happens if I swap the car before the end of the (Bmw) agreement is the additional mileage factored in- I’m guessing it is?

    I am trying to get trains everywhere where i can…

    jambalaya
    Free Member

    £800 over 3 years isn’t too bad, how much are you spending on train tickets more than 8p a mile ? A day return into London is about 50p a mile for example

    ekul
    Free Member

    I’d say it depends on what your plans are after you give the car back? If getting another car with them they may overlook or at least discount the extra mileage, at least that’s what I was told when getting mine. If not then I guess you could try and offset it against the cars condition or value over the amount owed. For example if you gave it back and they valued it at 12000 but you only owed 11200 then that would offset the excess mileage.

    trail_rat
    Free Member

    on many PCP its better just to pay the payment than to pay for a car with the correct amount of miles for your use…..

    I mean its probably less than the pence per mile you paid to date

    Its not “costing” you perse as your getting value from it as jambalya says.

    fatgit
    Free Member

    Hi
    When I got mine it’s based on 10k per year but the salesman asked if I intended to keep the car and pay the residual fee.
    As I am planning to do that then the mileage is irrelevant apparently
    Cheers
    Steve

    geoffj
    Full Member

    I’m currently exceeding my 25k per year by around 4K per hear 😳 but I’m only half way through the contract and my work situation could mean I do fewer miles in the next 12 months.
    You can’t worry about these things too much. In some ways, I’m more concerned about the scuffed alloy and some of the car park battle scars it’s acquiring. I’ll probably just keep it though anyway, so why worry?

    Tiger6791
    Full Member

    The excess mileage charge is mainly irrelevant unless you intend to hand the car back to the finance company and walk away.

    Trade it in with a dealer and it doesn’t really matter except for the value of it

    Pay off the balloon payment and it has no impact.

    You will only pay excess miles if you hand it back to finance company.

    ScottChegg
    Free Member

    As above, it’s only an issue when you give the car back at the end of the term.

    Go and speak to the dealer 6 months before the end of the deal and they’ll likely upgrade you to a new car without penalty.

    Especially when you look like you are going to leave the brand.

    Larry_Lamb
    Free Member

    Aye, excess mileage is only applicable when handing it back, so not buying it with the final balloon payment.

    It can also effect the ‘trade in’ value if you choose to PX the car against another/new one but just review what older cars go for of your make and model with the same mileage to work out what the PX value you might be on your expected actual mileage rather than the mileage you choose on the PCP.

    I chose the lowest annual mileage because I intend to trade in for another at the end of it and I know that cars I have with 100k miles at 3 years old are going for what the final payment would have been anyway so the trade in value will be same/better as the final payment. By doing this I kept the monthly payments down and save a few quid in the end. I expect to put on around 36k miles when trading it, which is double the actual contracted mileage.

    hora
    Free Member

    £800 isn’t bad. I’d be more focused on the handback condition clauses TBH.

    captainsasquatch
    Free Member

    Is it a pcp deal from BMW themselves? If so, they’re likely to waive the charge especially if you go for another BMW.

    nickdavies
    Full Member

    I wouldn’t worry about it. If you’d have picked a higher mileage agreement you’d have paid more for it so just drive and stick however much a month in a pot.

    I’m looking at a lease now and I’ll be picking 10k even though I’ll probably do close to 20 as it’s cheaper to pay the extra miles as the 20k deal is more than the 10k deal plus the mileage costs. Also things may well change and I might not keep doing the higher mileage, if you take the higher mileage allowance you don’t get anything back.

    As mentioned above if it’s pcp then if you keep the car it’s not an issue and if you hand it back you’ll probably be able to talk something off the next one as long as it’s the same dealer.

    cromega1991
    Free Member

    As someone said above it only matters if you had the car back, you’ll be charged the excess mileage.

    If you pay the balloon or part ex for another car it won’t matter one bit.

    It will affect the part ex value though as it’s based on mileage. You don’t even need to part ex within the same brand and can do it at any time before the end of the agreement.

    Kryton57
    Full Member

    Useful thanks – I obviously hadn’t thought about it that way. The train tickets btw are for work so fully refundable via expense claims. I avoid 320 miles return to Wiltshire for example by taking the train – although there are other reasons like getting 5hrs work done in addition which factor in.

    Guess I’ll stop worrying about it.

    King-ocelot
    Free Member

    Is it through alphabet? My 435 will be going back with an extra 6000-ish on it. My work were going to pay the extra, but as I’m taking another BMW Alphabet are turning a blind eye.

    Kryton57
    Full Member

    No std BMW through a dealer.

    neilnevill
    Free Member

    Also, if you are thinking of walking away, don’t forget you could VT (voluntarily Terminate) once you’ve paid 50% of the total cost. If you VT mileage isn’t not factored in. I’d advise you to read into it carefully though. there seems to be some discussion on how this affects credit rating…supposedly it doesn’t, but it is logged. It seems unscrupulous dealers are encouraging people to VT and change cars early but its not really designed for that, its designed to protect people who are struggling to make the payments. It seems finance companies are being left with some big losses. Anyway, you might want to consider it as a way to hand back the keys at no cost.

    jambalaya
    Free Member

    If finance companies are making losses throigh VT then they deserve a slap as that’s poor business from them not to write the contracts in such a way as they don’t lose money. In the old days when I was looking at such contracts the finance company used to make extra profit on am early termination.

    Greybeard
    Free Member

    The train tickets btw are for work so fully refundable via expense claims.

    So if you use the car, you get mileage? If so, how does the mileage payment compare to the incremental cost of the car – is it just fuel + 8p/mile?

    Kryton57
    Full Member

    Just to point out, I’ve no desire or need to get rid of the car.

    Good point Greybeard – I get the standard HMRC arrangement of 20ppm then have to ask for the rest through the tax office. 100m is 2 gallons so say £12 in fuel, but I’d get £20 back so do have some excess – not for personal miles of course. Hadn’t considered that.

    wallop
    Full Member

    If it’s anything like my mileage rate, it won’t cover the fuel 😆

Viewing 21 posts - 1 through 21 (of 21 total)

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