PCP - Have others been as lucky as us?
Discussion
My wife has had 2 previous Fiat 500's and is now on her third which actually is an Abarth 595.
She took out a 4 year PCP with all 3 cars and the first 2 cars were renewed before the PCP finished (approx after 3 years).
On both the first 2 cars she had gone over the agreed mileage by about 4,000 on the first one and about 7,000 on the second and the dealer said "don't worry about it".
So for the current Abarth 595 we actually decided to take out the PCP on the minimum mileage (6,000 per year) to keep the monthly costs down. We are now about to take this car back after 3 years and she has done 23,000 miles extra!!!
Obviously, I am rather concerned this time, but they had told us previously not to worry about the mileage. Apparently, the finance companies are not legally able to charge for excess mileage (although they will pursue you) and presumably, the dealers are aware of this.
I'll hopefully remember to post back here and let you know how we get on, but just wondered if others had been told not to worry about the mileage when renewing a PCP or had similar experiences?
She took out a 4 year PCP with all 3 cars and the first 2 cars were renewed before the PCP finished (approx after 3 years).
On both the first 2 cars she had gone over the agreed mileage by about 4,000 on the first one and about 7,000 on the second and the dealer said "don't worry about it".
So for the current Abarth 595 we actually decided to take out the PCP on the minimum mileage (6,000 per year) to keep the monthly costs down. We are now about to take this car back after 3 years and she has done 23,000 miles extra!!!
Obviously, I am rather concerned this time, but they had told us previously not to worry about the mileage. Apparently, the finance companies are not legally able to charge for excess mileage (although they will pursue you) and presumably, the dealers are aware of this.
I'll hopefully remember to post back here and let you know how we get on, but just wondered if others had been told not to worry about the mileage when renewing a PCP or had similar experiences?
Ubishere said:
My wife has had 2 previous Fiat 500's and is now on her third which actually is an Abarth 595.
She took out a 4 year PCP with all 3 cars and the first 2 cars were renewed before the PCP finished (approx after 3 years).
On both the first 2 cars she had gone over the agreed mileage by about 4,000 on the first one and about 7,000 on the second and the dealer said "don't worry about it".
So for the current Abarth 595 we actually decided to take out the PCP on the minimum mileage (6,000 per year) to keep the monthly costs down. We are now about to take this car back after 3 years and she has done 23,000 miles extra!!!
Obviously, I am rather concerned this time, but they had told us previously not to worry about the mileage. Apparently, the finance companies are not legally able to charge for excess mileage (although they will pursue you) and presumably, the dealers are aware of this.
I'll hopefully remember to post back here and let you know how we get on, but just wondered if others had been told not to worry about the mileage when renewing a PCP or had similar experiences?
I am sure loads have been told not to worry. That's the time when you need to start worrying She took out a 4 year PCP with all 3 cars and the first 2 cars were renewed before the PCP finished (approx after 3 years).
On both the first 2 cars she had gone over the agreed mileage by about 4,000 on the first one and about 7,000 on the second and the dealer said "don't worry about it".
So for the current Abarth 595 we actually decided to take out the PCP on the minimum mileage (6,000 per year) to keep the monthly costs down. We are now about to take this car back after 3 years and she has done 23,000 miles extra!!!
Obviously, I am rather concerned this time, but they had told us previously not to worry about the mileage. Apparently, the finance companies are not legally able to charge for excess mileage (although they will pursue you) and presumably, the dealers are aware of this.
I'll hopefully remember to post back here and let you know how we get on, but just wondered if others had been told not to worry about the mileage when renewing a PCP or had similar experiences?
Many stories of dealers staring to chase people up now for excess mileage charges. Only yesterday some young lad was posting here that he had gone way over his mileage allowance, it was the dealers fault mind you
, and they were asking for £3k or so excess mileage chargeExcess mileage is only an issue if you are handing the car back to the Finance Co, if trading it in against another PCP deal then the car becomes Dealership stock with any outstanding finance cleared via the deal you are being offered on the new package. The Finance Co don't care in that case because it's no longer their car.
The excess mileage charge is only payable if you return the car to the finance company.
If you trade the car in to the dealer instead then they will offer you a trade in price based on the actual mileage. With a following wind, this will be close enough to your settlement figure for the dealer to absorb any shortfall.
If you take the p*ss with it, though, as you appear to have done with your current agreement, then be prepared to put some cash in as a balancing charge if required.
If you trade the car in to the dealer instead then they will offer you a trade in price based on the actual mileage. With a following wind, this will be close enough to your settlement figure for the dealer to absorb any shortfall.
If you take the p*ss with it, though, as you appear to have done with your current agreement, then be prepared to put some cash in as a balancing charge if required.
Of course they are legally entitled to charge, you will have even signed a document stating this!
The reason the dealer said don’t worry about it the previous times are because you keep getting a new car from them and they are clearly making enough profit from you.
Anytime a dealer tells you not to worry about things like this it’s because you’ve clearly overpaid for the car in the first place for there to be enough profit in it to sell it again and make money.
Try handing this one back and telling them you don’t want another car from them and let us know how it goes when you’re given a bill...
The reason the dealer said don’t worry about it the previous times are because you keep getting a new car from them and they are clearly making enough profit from you.
Anytime a dealer tells you not to worry about things like this it’s because you’ve clearly overpaid for the car in the first place for there to be enough profit in it to sell it again and make money.
Try handing this one back and telling them you don’t want another car from them and let us know how it goes when you’re given a bill...
The mileage is only really a problem with PCP if you just hand the car back and walk away. Most people PX and go again, therefore the dealer will offer a PX price which will normally be more than the balloon payment (GFV) on the car. Very unusual these day's for there not to be some equity left in the car even when over miles.
r250 said:
Of course they are legally entitled to charge, you will have even signed a document stating this!
The reason the dealer said don’t worry about it the previous times are because you keep getting a new car from them and they are clearly making enough profit from you.
Anytime a dealer tells you not to worry about things like this it’s because you’ve clearly overpaid for the car in the first place for there to be enough profit in it to sell it again and make money.
Try handing this one back and telling them you don’t want another car from them and let us know how it goes when you’re given a bill...
It's not the dealer making the charge if you hand the car back, it's never been the dealer's or OP's car, it's always been owned by the Finance Co, you seem confused over the terms Delearship and Finance Co I would say, see my post above and the one below it The reason the dealer said don’t worry about it the previous times are because you keep getting a new car from them and they are clearly making enough profit from you.
Anytime a dealer tells you not to worry about things like this it’s because you’ve clearly overpaid for the car in the first place for there to be enough profit in it to sell it again and make money.
Try handing this one back and telling them you don’t want another car from them and let us know how it goes when you’re given a bill...
Do you really, genuinely, think it's that simple?
You have, presumably, signed a contract which details what the other party, which presumably is not the dealer, can do. Having said that, perhaps car dealers really do care for their customers and never lose the chance to charge you less than they could., all in the name of customer service.
You have, presumably, signed a contract which details what the other party, which presumably is not the dealer, can do. Having said that, perhaps car dealers really do care for their customers and never lose the chance to charge you less than they could., all in the name of customer service.
ninepoint2 said:
It's not the dealer making the charge if you hand the car back, it's never been the dealer's or OP's car, it's always been owned by the Finance Co, you seem confused over the terms Delearship and Finance Co I would say, see my post above and the one below it
Pedantry at finest, you knew exactly what I meant and save for the incorrect use of dealer and finance company it’s the same result. In fact I’ve read it back and I never mentioned who would be pursuing payment, just that it would happen... smart arse
Edited by r250 on Friday 9th November 19:30
This excerpt is taken from the Car Expert Website...
There’s no provision for excess mileage charges in the law, so in theory, you can’t be charged for exceeding your mileage allowance. However, if you exceed the pro-rata mileage allowance, you can expect the finance company to come after you for an excess mileage penalty.
You do not have to pay this charge, but you will need to be prepared to fight it – potentially for months and against threats of legal action. Despite repeated assertions from the legal community that excess mileage is not enforceable, the finance companies keep trying to charge customers for it. Their hope is that by bullying you, you will pay up. In plenty of cases, this works. Customers are often terrified to receive serious-looking letters or threats from legal firms acting on behalf of the finance company, but it’s all a bluff.
Full information is shown in the link below....
https://www.thecarexpert.co.uk/car-finance-volunta...
There’s no provision for excess mileage charges in the law, so in theory, you can’t be charged for exceeding your mileage allowance. However, if you exceed the pro-rata mileage allowance, you can expect the finance company to come after you for an excess mileage penalty.
You do not have to pay this charge, but you will need to be prepared to fight it – potentially for months and against threats of legal action. Despite repeated assertions from the legal community that excess mileage is not enforceable, the finance companies keep trying to charge customers for it. Their hope is that by bullying you, you will pay up. In plenty of cases, this works. Customers are often terrified to receive serious-looking letters or threats from legal firms acting on behalf of the finance company, but it’s all a bluff.
Full information is shown in the link below....
https://www.thecarexpert.co.uk/car-finance-volunta...
Seems like a lot of folk don’t understand how it works. Literally the ONLY thing the finance company is interested in getting is the outstanding balance (i.e the return value per the contract) on the loan repaid. That’s it.
Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a s
t as they’ve been paid back and the car is no longer their problem to deal with.
Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a s
t as they’ve been paid back and the car is no longer their problem to deal with. Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
Although as stated by others, we would be trading in for another deal, not handing the car back, so I would imagine the dealer will ask for a bigger deposit or higher monthly charges for her next car. It will be interesting to see if it works out the same as paying the extra monthly amounts had she said 13,500 per year instead of 6,000.
dvs_dave said:
Seems like a lot of folk don’t understand how it works. Literally the ONLY thing the finance company is interested in getting is the outstanding balance (i.e the return value per the contract) on the loan repaid. That’s it.
Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a st as they’ve been paid back and the car is no longer their problem to deal with.
Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
That makes three of us so far that seem to understand the issue..well said that man Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a s
t as they’ve been paid back and the car is no longer their problem to deal with. Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
Ubishere said:
This excerpt is taken from the Car Expert Website...
There’s no provision for excess mileage charges in the law, so in theory, you can’t be charged for exceeding your mileage allowance. However, if you exceed the pro-rata mileage allowance, you can expect the finance company to come after you for an excess mileage penalty.
You do not have to pay this charge, but you will need to be prepared to fight it – potentially for months and against threats of legal action. Despite repeated assertions from the legal community that excess mileage is not enforceable, the finance companies keep trying to charge customers for it. Their hope is that by bullying you, you will pay up. In plenty of cases, this works. Customers are often terrified to receive serious-looking letters or threats from legal firms acting on behalf of the finance company, but it’s all a bluff.
Full information is shown in the link below....
https://www.thecarexpert.co.uk/car-finance-volunta...
This is by no means fact. They can absolutely take you to court, and may well win. Financial Ombudsman has already disagreed with this oft quoted piece of article.There’s no provision for excess mileage charges in the law, so in theory, you can’t be charged for exceeding your mileage allowance. However, if you exceed the pro-rata mileage allowance, you can expect the finance company to come after you for an excess mileage penalty.
You do not have to pay this charge, but you will need to be prepared to fight it – potentially for months and against threats of legal action. Despite repeated assertions from the legal community that excess mileage is not enforceable, the finance companies keep trying to charge customers for it. Their hope is that by bullying you, you will pay up. In plenty of cases, this works. Customers are often terrified to receive serious-looking letters or threats from legal firms acting on behalf of the finance company, but it’s all a bluff.
Full information is shown in the link below....
https://www.thecarexpert.co.uk/car-finance-volunta...
ninepoint2 said:
dvs_dave said:
Seems like a lot of folk don’t understand how it works. Literally the ONLY thing the finance company is interested in getting is the outstanding balance (i.e the return value per the contract) on the loan repaid. That’s it.
Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a st as they’ve been paid back and the car is no longer their problem to deal with.
Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
That makes three of us so far that seem to understand the issue..well said that man Excess mileage only becomes an issue if you hand the car back to the finance co, then they have to do the legwork of selling it on. They can then also enforce any excess mileage charges per the contract.
If as part of the OP’s next PX deal, there’s sufficient equity in the trade in for the dealer to pay off the outstanding finance to the finance co, it’s irrelevant what mileage the car has on it. Finance co doesn’t give a s
t as they’ve been paid back and the car is no longer their problem to deal with. Notwithstanding, the OP is a plonker for going so far over the agreed mileage as he’s opening himself up to a worse deal on his trade in.
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