I would appreciate your collective advice...... he says nervously!

dmaudi · Sep 26, 2006

Last night I realised I am, after only 6 months over a third of the way through the allowed mileage for my PCP car with 30 months still to go

if I carry on I'll be 40K over the max allowed mileage with penalty charges of 28p per mile...... :scared2:

problem is we just don't use our other car, Mini Cooper, as its only practical for two not two and a Seven year old so all the miles go on mine,

so do I continue to run it at 2K a month for another 6 months or more and then try to move on a 34K mile two and a half year old car or do it now with 22K and just two years old.

I really don't want to get rid of it, but

now I know I'll not be able to take advantage of the GTFV figure and probably have an 80K mile 4.5 yr old car at then end

and also how many miles I'm doing its playing on my mind and I reckon I need to somehow change the deal or the car

as the title, some impartial thoughts would be appreciated people

cheers
Dan

Boyakasha · Sep 26, 2006

I hope you are not in a hurry for advice on here

I would say try and use the other car as much as possible to try and balance it out. I am sure your seven year old can fit in the back of the mini, although I realise how small the boot in the mini is.

Good luck

Vertigo1 · Sep 26, 2006

28p per mile!!!!! Jesus!

If I were you I'd try to renegotiate the mileage allowance with the PCP company and if you can't, sell it pronto as you're only doing more damage the more miles you travel.

dmaudi · Sep 26, 2006

thanks Guys,

if i'm honest I needed to voice my concerns, and hoped someone might have similar good ideas to me of how to fix this.

Vertigo, I know, nothing I said when I worked it out is printable!

up to 10K over is 4p over 10K it jumps to 28, that's more than the GTFV.

If I wasn't doing the miles I'd not worry but there is no way my daughter can fit in the back of the Mini with two adults in the front for more than a few miles. oh and my wife would sooner sell me than get rid of the Mini !

I am waiting to find out if they will let me change the figures but if not then I'll have to move to another car I think. :3sadwalk:

killbill · Sep 26, 2006

da3m said:
thanks Guys,

if i'm honest I needed to voice my concerns, and hoped someone might have similar good ideas to me of how to fix this.

Vertigo, I know, nothing I said when I worked it out is printable!

up to 10K over is 4p over 10K it jumps to 28, that's more than the GTFV.

If I wasn't doing the miles I'd not worry but there is no way my daughter can fit in the back of the Mini with two adults in the front for more than a few miles. oh and my wife would sooner sell me than get rid of the Mini !

I am waiting to find out if they will let me change the figures but if not then I'll have to move to another car I think.

Why not consider buying the car at the end of the contract, no penal mileage rates then ?

:ermm:

confusionhunter · Sep 26, 2006

I would work something out sooner rather than later. I had a friend that was in a similar situation with a merc...... except he just ignored it and ended up having to pay for the nose. It was cheaper for him to buy it outright and sell it and take a wallop on depreciation than pay for the additional mileage on the car!!

Rob W8 · Sep 26, 2006

Can you not walk away once you have paid half the finance or when you are half way through? I thonk there may be a clause like this in Finance deals.
I did the same thing with a Siht Peugeot and when it started to go wron (surprise) I was over the mileage and ended up buying and selling on to some poor mug and making a £6500 loss over 2 years as well as the Finance!!! Nice.

Good luck with negotiating the figures. fingers crossed mate

Booster · Sep 27, 2006

There are no "walk away having paid half the finance" clauses in PCP deals. Only on Hire Purchase and conditional sale agreements.

dmaudi · Sep 27, 2006

Thanks again,

Spoke to Audi and thankfully I do actually have a regulated finance agreement, rather than a proper PCP, it has a balloon at the end but effectively its the same as normal finance because the car was 18months old when i bought it

:biggrin:

PHEW, I am majorly relieved,

IMPORTANT TIP On Regulated agrements though

Don't hand back cars using Half and thirds type deals as this can have a negative impact on your credit rating,

This is massively different to trading in and the dealer settling your agreement with a cheque/other finance, The finance companies don't want your half paid for car and will penalise you for doing it.

celebrated with a 2hr drive-out last night..... I'll never learn! another 160 miles

probably will get rid of it in about a year now I have worked out how much mileage I'm doing, I don't feel good about trying to move on an 80K plus mile 3.2 in a few years time.

Booster · Sep 29, 2006

da3m said:
IMPORTANT TIP On Regulated agrements though

Don't hand back cars using Half and thirds type deals as this can have a negative impact on your credit rating,

This is massively different to trading in and the dealer settling your agreement with a cheque/other finance, The finance companies don't want your half paid for car and will penalise you for doing it.

You are right and wrong! The law states that you can hand the car back having paid your half of the total. Now, as the law says that, it shouldn't have an effect on your credit rating. However, any agreement that is settled in this manner will be marked on your credit file as a "voluntary termination". When I see this on a person's credit file when I am underwriting a deal I am always more cautious as it can be taken in two ways: They exercised their right to terminate having paid the half or they couldn't afford it so did a deal with the finance company.

And you are dead right, we don't want your half paid car hanging round the back of our office for weeks while we try to get sensible bids for it!! :no:

TDI-line · Sep 29, 2006

We gave back our clio after paying 50% of the value of the car after around 2 years on PCP. They came and collected the car, it went to auction, and they easily recovered the other half of the money.

dmaudi · Sep 29, 2006

Guys my point was that giving back a car mid term to the finance company is not the best option as it "can affect" your credit score/rating.

thanks for the confirmation Booster maybe it's not as clear cut as a CCJ or missed payment but

if it didn't matter then it would show up as settled or paid or whatever full term or settled agreements show as not as "voluntary termination"

as Booster confirms this is there as a warning to other lenders that this borrower may not take the arrangement full-term so the lender may not get the fullest return on their lending, or some other i.e can't afford to maintain payments.

the clause is there beacuse it is law not beacuse they want to give you an opt out. I still say no Finance company want to try to sell your old car,

come on surely its the other way round?

Doesn't every Dealer just really want to sell finance!

mmm wonder why

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