Exceeding Mileage limits on PCP

[jimmy156]

Due to a change in circumstance it looks likely that i will exceed the 10k per year limit i have on my car, purchased last year. Being only a year into a 4 year agreement however, things could change back again, but i was just considering my options.

I guess i have a few options:

- Discuss with BMW finance about altering the limit (and take a hit on monthlys
- Chop the car in for a new deal
- Take the hit on the extra miles (and charges, about 3p per miles IIRC) at the end of the agreement.

Could anyone who has experience of such a situation advise on what is the best option financially.

Cheers,
James

[Jakg]

You might want to check the excess mileage charge - say you do 18k a year, 8kpa excess mileage, £20 a month extra.

[carl_w]

I'd take the hit at the end -- 3p/mile is hardly anything. Lots could change between now and then -- you might do less mileage in year 3, or you might decide to voluntarily terminate.

[w00tman]

You'll still pay the proportionate excess mileage if you do VT though, just be aware.

[carl_w]

w00tman said:

You'll still pay the proportionate excess mileage if you do VT though, just be aware.

According to another thread on here that isn't the case.

[w00tman]

Well, it's true for my experience, and from the cases on the Financial Ombudsman's website (for disputes, obs).

EDIT:

http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

etc etc

Edited by w00tman on Sunday 8th March 18:01

[lee_fr200]

My mate does lease deals and he sells the car before the end of term then pays the remaining finance off which negates the excess mileage charge

He went massively over on his s3 a couple of year ago his final payment was 15k and he sold it for 22k so no charge and made 7k profit to put towards a deposit on his next car

[w00tman]

lee_fr200 said:

My mate does lease deals and he sells the car before the end of term then pays the remaining finance off which negates the excess mileage charge

He went massively over on his s3 a couple of year ago his final payment was 15k and he sold it for 22k so no charge and made 7k profit to put towards a deposit on his next car

That's the right way to do, presuming you have equity etc in the car. To be honest, the excess mileage is normally relatively reasonable so it shouldn't a deal breaker.

[Trailhead]

lee_fr200 said:

My mate does lease deals and he sells the car before the end of term then pays the remaining finance off which negates the excess mileage charge

He went massively over on his s3 a couple of year ago his final payment was 15k and he sold it for 22k so no charge and made 7k profit to put towards a deposit on his next car

Similar to what I did on my last PCP. It was an A3 with 10k per annum over 4 years. By the end of year 3 it had 60k on so I just sold it privately and paid the balance off with the money.

If it had gone back with 40k extra the penalty was £2,880 so easier to just sell privately or trade in.