Way over my mileage, one year into a PCP
Discussion
cheerfulcharlie said:
stuartie said:
Hi
Is there a cap on extra miles you can do on pcp, or can you do as much as you want if you plan on px it with a different company at the end of contract.
Thanks
Makes no difference - car will be valued based on its mileage just like any PX would be. Is there a cap on extra miles you can do on pcp, or can you do as much as you want if you plan on px it with a different company at the end of contract.
Thanks
I have seen contracts with a step in the excess mileage (eg 5p per mile for the first 1000 miles, then 20p per mile above that).
A friend of mine traded in her 16 plate Fiesta back in June on 18k, 2 years into a 3 year 6k a year PCP and had equity (£400 approx) in it which was used as a deposit for her new ST Line. This was mainly due to the level of discount she got on the 2016 car in the first place (around £3000 at the time) and the fact the car was more or less in the same condition as it was when driven off the forecourt - it was pristine. I traded in my old i30 on HP which had equity and used it as a deposit on my Fabia.
Remember PCP is just HP but with a deferred balloon payment. You would settle it in the same way.
You may have negative equity which would need to be paid off or rolled into the new deal (not advised) - mileage only matters in terms of ppm if you are going to return the car to the finance company, if you are trading in it will just be the difference in trade in against settlement.
Remember PCP is just HP but with a deferred balloon payment. You would settle it in the same way.
You may have negative equity which would need to be paid off or rolled into the new deal (not advised) - mileage only matters in terms of ppm if you are going to return the car to the finance company, if you are trading in it will just be the difference in trade in against settlement.
Edited by kieranblenk on Tuesday 14th August 11:10
kieranblenk said:
A friend of mine traded in her 16 plate Fiesta back in June on 18k, 2 years into a 3 year 6k a year PCP and had equity (£400 approx) in it which was used as a deposit for her new ST Line. This was mainly due to the level of discount she got on the 2016 car in the first place (around £3000 at the time) and the fact the car was more or less in the same condition as it was when driven off the forecourt - it was pristine. I traded in my old i30 on HP which had equity and used it as a deposit on my Fabia.
Remember PCP is just HP but with a deferred balloon payment. You would settle it in the same way.
You may have negative equity which would need to be paid off or rolled into the new deal (not advised) - mileage only matters in terms of ppm if you are going to return the car to the finance company, if you are trading in it will just be the difference in trade in against settlement.
Yep - what he said !Remember PCP is just HP but with a deferred balloon payment. You would settle it in the same way.
You may have negative equity which would need to be paid off or rolled into the new deal (not advised) - mileage only matters in terms of ppm if you are going to return the car to the finance company, if you are trading in it will just be the difference in trade in against settlement.
Edited by kieranblenk on Tuesday 14th August 11:10
Surely you guys are wrong?
Why wouldn’t I take an M4 out on a 1K Miles pa pcp and do 60k miles a year in it and then hand it back 2 and a half years into the 3 year term when it has 150k miles on it?!
The borrowers car would be worth naff all so surely you couldn’t just walk away by doing a VT? Surely you’re responsible for the excess mileage?
Why wouldn’t I take an M4 out on a 1K Miles pa pcp and do 60k miles a year in it and then hand it back 2 and a half years into the 3 year term when it has 150k miles on it?!
The borrowers car would be worth naff all so surely you couldn’t just walk away by doing a VT? Surely you’re responsible for the excess mileage?
ilikejam said:
As others have said - don't worry about the mileage too much. It's only relevant if you're handing the car back and walking away. If you're looking to get a new car the dealer won't care!
Of course its relevant. If you intend to trade in for a new car then xs miles will affect its residual value. If you take a 3yr PCP at 6k per year then turn at Yr 3 to trade in with 150k miles on it then the dealer most certainly will care!
Why do you think they won't?
You cover the excess mileage in way of reduced resale value, which would create the deficit. So it is relevant in that respect, my point is you wouldn't be physically charged for the excess mileage in a part ex scenario, but if the miles are up then the trade in value goes down.
Another friend of mine had a 6k a year PCP but a job change meant she did 43k in less than 2 years. There was negative equity, but she wasn't physically charged for the miles. Also it's not a VT, it's a settlement.
Another friend of mine had a 6k a year PCP but a job change meant she did 43k in less than 2 years. There was negative equity, but she wasn't physically charged for the miles. Also it's not a VT, it's a settlement.
Edited by kieranblenk on Tuesday 14th August 18:54
Edited by kieranblenk on Tuesday 14th August 18:55
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