PCP - Have others been as lucky as us?
Discussion
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.
What a load of tripe. If it is in the contract then there may be an enforceable term. 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.
Unless you have case law that says such a term is void or invalid, but "no provision in law" is a load of rubbish seemingly written by one absent knowledge of how the law actually works.
johnwilliams77 said:
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?
Are you stupid?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?
Hes only got to worry about it if he hands the car back. He hasnt said hes planning on doing that. If hes trading it in he can fight it out with the dealer as to what the cars worth, relative to whats owed. The finance company wont give a monkeys.
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 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.
+1Excess 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 hes not opening himself up to a worse deal - he "might" have some negative equity to contend with but it shouldnt impact the discount he gets or the value of his car.
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...
You're wholly misquoting what thats relating to - thats talking about a VT scenario. 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...
Thats VERY different to a VT whereby the contract is terminated.
AND in the case of a VT, the finance company CAN and moreoften WILL pursue you through the court system and WIN.
EDIT: Reworded because its the O/P quoting this....
Edited by Deep Thought on Friday 9th November 20:40
Jasandjules said:
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.
What a load of tripe. If it is in the contract then there may be an enforceable term. 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.
Unless you have case law that says such a term is void or invalid, but "no provision in law" is a load of rubbish seemingly written by one absent knowledge of how the law actually works.
Deep Thought said:
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...
You're wholly misquoting what thats relating to - thats talking about a VT scenario. The O/P isnt VT'ing. The contract has reached its end.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...
Thats VERY different to a VT whereby the contract is terminated.
AND in the case of a VT, the finance company CAN and moreoften WILL pursue you through the court system and WIN.
Monkeylegend said:
Deep Thought said:
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...
You're wholly misquoting what thats relating to - thats talking about a VT scenario. The O/P isnt VT'ing. The contract has reached its end.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...
Thats VERY different to a VT whereby the contract is terminated.
AND in the case of a VT, the finance company CAN and moreoften WILL pursue you through the court system and WIN.
Then i can only assume the O/P is either being obtuse or is trolling.....
Deep Thought said:
Monkeylegend said:
Deep Thought said:
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...
You're wholly misquoting what thats relating to - thats talking about a VT scenario. The O/P isnt VT'ing. The contract has reached its end.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...
Thats VERY different to a VT whereby the contract is terminated.
AND in the case of a VT, the finance company CAN and moreoften WILL pursue you through the court system and WIN.
Then i can only assume the O/P is either being obtuse or is trolling.....
Turbojuice said:
I do hope OP is trolling, otherwise they deserve a Darwin award!
Indeed. They dont seem clear as to what they're doing :-- Trading it in, not a problem. Fight it out with the dealer as to what the car is worth relative to the residual.
- Handing it back, major problem. Finance company pursue you for the mileage AND anything that falls outside of fair wear and tear
- VTing it, a roll of the dice but most likely a major problem. Finance company will most likely pursue you for the excess miles and anything that falls outside fair and tear and likely to win in court.
I did say somewhere in the mix that she is trading it in for another car. I would not take back a car with that mileage if we were just handing it back.
The link to the info about not having to pay for higher mileage charges was quite interesting I thought although some here obviously disagree.
The link to the info about not having to pay for higher mileage charges was quite interesting I thought although some here obviously disagree.
Ubishere said:
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!!!
So the plan is to hand back and not roll onto another car from the supplying dealer? Expect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
MDMA . said:
So the plan is to hand back and not roll onto another car from the supplying dealer?
Expect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
he did say renewing a PCP in the first postExpect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
Ubishere said:
I did say somewhere in the mix that she is trading it in for another car.
we do seem to have more than our usual quota of "specials" in this thread, I blame the Friday night alcohol 
Edited by ninepoint2 on Friday 9th November 22:34
MDMA . said:
Ubishere said:
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!!!
So the plan is to hand back and not roll onto another car from the supplying dealer? Expect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
Ubishere said:
I did say somewhere in the mix that she is trading it in for another car. I would not take back a car with that mileage if we were just handing it back.
The link to the info about not having to pay for higher mileage charges was quite interesting I thought although some here obviously disagree.
You didnt say specifically she was trading it in though? You just seem to have created this thread in an inflamatory way just to get a reaction?The link to the info about not having to pay for higher mileage charges was quite interesting I thought although some here obviously disagree.
The thread is "interesting" per se, but applies when VTing not when handing the car back at the end of the term and isnt strictly true anyway. Finance companies can and very often do pursue for excess miles on a VT and they get it in front of some magistrate who rules in their favour more often than not.
Little Lofty said:
You don’t get charged for excess mileage if you sell the car before the term ends. However, the car will be worth less, so you pay one way or another.
But probably not to the extent of the mileage charge * 23,000 and i suspect the residual on an Abarth is quite low, relative to actual value so the O/P might get out ok on it.6,000 * 3 years + 23,000 is 41,000 so just slightly over average miles.
ninepoint2 said:
MDMA . said:
So the plan is to hand back and not roll onto another car from the supplying dealer?
Expect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
he did say renewing a PCP in the first postExpect to be billed for the 23k extra miles. What was the cost per mile in the terms you signed/agreed to?
Ubishere said:
I did say somewhere in the mix that she is trading it in for another car.
we do seem to have more than our usual quota of "specials" in this thread, I blame the Friday night alcohol Edited by ninepoint2 on Friday 9th November 22:34
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