PCP Mileage...

[RedKez]

Hi all,

I've seen a few threads about PCP and I'm slightly concerned, it's not a big deal but would rather nip it in the bud now if needs be.

I've had my DS3 about 5 months, done 4000 but only supposed to do 7000 a year.
I did do on average 5000 in my fiesta for 2 years before I got this... obviously love my DS3 more!

I was going to go for 8/9k a year but the salesman said put 7000 down to bring the payments down and at the end of the contract if you're over and you're staying with them they won't even bat an eyelid on the mileage, only if I decide to take my custom elsewhere...

Is it worth just ringing up and adjusting my yearly mileage now for the sake of 5/10 a month or?

Ta!

[lfcrule1972]

I'm sure my dealer was keen on this with my purchase (even though I had a loan agreed with my building society) until I told him my mileage is between 18k and 20k a year ! He then didn't think it would be good value for money....

[Bigfeet]

...I was going to go for 8/9k a year but the salesman said put 7000 down to bring the payments down and at the end of the contract if you're over and you're staying with them they won't even bat an eyelid on the mileage, only if I decide to take my custom elsewhere...

Please name and shame this dealer now.

There is no way a dealer should lower the mileage in order to make the payments cheaper, the mileage effects all in a PCP!

1.) The mileage you set affects the GFV value at the end
2,) The excessive mileage charge is much higher at lower annual mileage allowances
3.) The mileages plays a part in Part Exchange REGARDLESS of where it is!

The point here is that you will now have a car worth less then the GFV value which mean you either have to pay off the mileage to hand back, pay your way out of the car or buy the car for way more then it is worth.

Sorry to rant but dealer that do this should be shot...



Get in touch with Citroen Finance ASAP as they will re do your agreement with them, it will end up costing you more a month but should avoid it costing even more at the other end.

[Acmaguire]

Name and Shame

[RedKez]

Sorry, I may have worded that slightly wrong. I was doing on average about 5000 miles as my job was literally on my doorstep.
He suggested 7000 to cover that etc and I asked what would the payments be if I did 8/9/10k and that's when he replied with:
'To be honest if you hand back in a couple of years and you've done over 14000 but you're staying with us, they won't bother. If you go elsewhere that's when they'll charge you for the excess mileage.'
It's not a Citroen dealer, it's an Vauxhall Arnold Clark dealer which some of my family use.

I now feel slightly embarrassed...

[Acmaguire]

Okay, we forgive you!! :star:

[Bigfeet]

Still technically not right about the statement on the mileage.

[RedKez]

Thanks for your replies Bigfeet, what do you suggest?
I'm in two minds as they were all great and offered me free service and MOTs as part of my PCP, have already help sort some paint out free of charge a few weeks after I got it, I can't fault Arnold Clark at all. I just don't want to come to swapping cars and be left with a hefty sum to pay and them saying 'well the salesman shouldn't have said that'.

Admittedly it's my fault for going along with his statement, never thought I'd do more than 7k a year seen as my job is 3 miles away.

[lfcrule1972]

Damn ! Drops pitchfork and tries to put out burning house.... I hate it when a mob is disbanded

[Bigfeet]

Your best option is to increase your mileage to cover you for the extra that you are travelling, regardless of what the salesman said the value of your car will pay it's part when it comes to change over.



On PCP the final payment or GFV (Guarantee Future Value) is set by the mileage you start with, this needs be accurate enough to what you plan - I always advise having more than enough.

Imagine having a car that was agreed at 6k per year with a GFV of lets yes £5,000 but you have actually covered 8k per year. So the car is valued at the end of term with the mileage of 24k and the guide places the car at £4k, this means you still owe the finance £1,000 before you can change the car. Okay so lets say you don't want to do that and opt for the hand back option, problem here is (in this example) you have covered an extra 6k miles at a cost of 15 pence per mile you would have to pay the finance at least £900 of charges BEFORE condition was even checked. Okay so lets say we don't do that and opt to buy the car instead, this means you have to buy a car worth only £4k for £5k!

I hope that helps to show why mileage is important within a PCP deal.

[RedKez]

Spot on. I'll get on the phone to them. Thanks for your help Bigfeet!

[DigitalCal]

PCP Mileage...

Admittedly it's my fault for going along with his statement, never thought I'd do more than 7k a year seen as my job is 3 miles away.

When I started mine, my job was about 20 miles away. Within 3 months I had changed jobs with a 50 mile commute each way. I rang Citroen up and adjusted the mileage from 10,000 per annum to 20,000 per annum. Only put my payments up by about £15/month.

I think I'll still possibly be over by a tiny bit come next August, though.

[Hyperkev]

My mileage was at 14k done 20 in first year tut , should drop but wonder if I should up mine 2 years to go.

[lfcrule1972]

That's not a bad increase for double the mileage is it DigitalCal ? I'd rather pay now in instalments than a lump sum at the end

[RedKez]

When I started mine, my job was about 20 miles away. Within 3 months I had changed jobs with a 50 mile commute each way. I rang Citroen up and adjusted the mileage from 10,000 per annum to 20,000 per annum. Only put my payments up by about £15/month.

I think I'll still possibly be over by a tiny bit come next August, though.

That's amazing! I'm going to ring up today and up mine by 3/4k, should hopefully be less than a tenner a month if so which I'll be well happy with!