PCH - hand back two months early or see out contract?
Discussion
Looking for some advice as my first PCH deal is coming to an end.
I have two payments of £247 left to make on 1st April and 1st May, which would see me to the contract end date of 22nd June.
Signed-up for another car with the same dealer, collecting on 31st March at the latest.
I've been offered an early termination quote of 55% of remaining payments = £272.
My dilemma is being on 10k miles pa, I think I'd be handing the car back on approx. 19000 miles.
I believe mileage is worked out pro-rata, so on 31st March I think I'd be approx. 1200 miles over the pro-rata mileage.
At 12p per mile incl. VAT, the excess mileage charge would cost around £144.
Basically, I'm wondering if I should just have two cars for a couple of months for the sake of £78 difference?
(272 + 144 = £416, as opposed to fulfilling the two remaining payments totaling £494)?
The other thing I've considered, is that on a positive note, I wouldn't be racking up the miles in the new car if I keep my existing car to the 20000 miles mark.
The flip side of that is driving around in an older car for 1000 miles, with a newer one in my possession.
Interested to see what others would do / have done, in the same situation.
I have two payments of £247 left to make on 1st April and 1st May, which would see me to the contract end date of 22nd June.
Signed-up for another car with the same dealer, collecting on 31st March at the latest.
I've been offered an early termination quote of 55% of remaining payments = £272.
My dilemma is being on 10k miles pa, I think I'd be handing the car back on approx. 19000 miles.
I believe mileage is worked out pro-rata, so on 31st March I think I'd be approx. 1200 miles over the pro-rata mileage.
At 12p per mile incl. VAT, the excess mileage charge would cost around £144.
Basically, I'm wondering if I should just have two cars for a couple of months for the sake of £78 difference?
(272 + 144 = £416, as opposed to fulfilling the two remaining payments totaling £494)?
The other thing I've considered, is that on a positive note, I wouldn't be racking up the miles in the new car if I keep my existing car to the 20000 miles mark.
The flip side of that is driving around in an older car for 1000 miles, with a newer one in my possession.
Interested to see what others would do / have done, in the same situation.
Based on those figures, whatever you do it doesn't really matter, do what you want to do if you've got the room for the additional car and have factored in the additional insurance and can be bothered keep both, but if you want to get rid get rid.
When I've been in the same situation I've just kept both until one gets collected.
When I've been in the same situation I've just kept both until one gets collected.
Yes, I've thought the same, that there's not much in it to sway my decision one way or another.
Using the last 1000 miles in my current car could save me £150 in excess mileage charges in two years time, but arranging new car insurance early will cost me an extra £150 now.
I suppose from a purest leaser's point of view, I should go for the cheapest option.
I think I'll probably be handing the car back early.
Thanks for the reply.
Using the last 1000 miles in my current car could save me £150 in excess mileage charges in two years time, but arranging new car insurance early will cost me an extra £150 now.
I suppose from a purest leaser's point of view, I should go for the cheapest option.
I think I'll probably be handing the car back early.
Thanks for the reply.
LeasingGuy said:
but arranging new car insurance early will cost me an extra £150 now.
If you're saying what I think you're saying here (you'd have the new, leased, not-your car so not your risk to take uninsured on your drive and in your care) I think that's possibly the most retarded thing I've ever seen anyone say they're going to do.If it goes walkies, you personally owe the lease company a vehicle; not the rest of the lease payments, a whole vehicle.
Pegscratch said:
If you're saying what I think you're saying here (you'd have the new, leased, not-your car so not your risk to take uninsured on your drive and in your care) I think that's possibly the most retarded thing I've ever seen anyone say they're going to do.
If it goes walkies, you personally owe the lease company a vehicle; not the rest of the lease payments, a whole vehicle.
No, I'm not saying what you think I'm saying.If it goes walkies, you personally owe the lease company a vehicle; not the rest of the lease payments, a whole vehicle.
I was saying I'd have to factor in an extra 3 months of car insurance at an additional cost of around £150, as I'd have two cars to insure for that period.
I've decided to just hand the current car back early.
Mods you can close this topic, as it still hasn't been moved from car buying to general gassing - general gassing.
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