PCP Voluntary Termination - Excess mileage charge

[jdc0907]

I’m on PCP and have used it for my last 2 cars, I like the flexibility and if taken out when attractive deposit contributions and low APR rates it can work out cheaper than a bank loan in terms of interest. Some people take out a PCP to get the deposit contribution from the dealer, then get a bank loan to pay it all off within 30days which can work out even cheaper, I haven’t done this myself however.

Even though the terms are 3-4years it’s very straightforward and easy to change cars earlier if you want to. For my current GTI I was in a little bit of negative equity (around £500) with my previous car due to wanting to change earlier (I was just enquiring at the time to get an idea of numbers), but VW offered to waive this and gave me a good discount on new GTI, presumably as they’ve got me “signed on” for another 4 years.

This can make things tricky if you want to change brands away from VW for your next car. But you can settle your PCP at any time if you wish and then sell the car privately/part exchange it but will likely end up costing you more than if you renewed another PCP direct with VW.

[gadgeygoo]

I've heard it from 3x different dealers at 3 different dealerships - VW, VW and Audi. All 3 advocated VT'ing the deal before it ends, and to keep the mileage as low as possible to keep the payments low. It's ridiculous really. They're passing the VT stress onto the consumer. Finance companies must be severely losing out.

I've still not decided whether I've got the minerals to try and escape the mileage penalty. I never intended to VT, but after a change in job location, it makes the most financial sense (and im being advised to by dealers!)

[Exonian]

I’m really interested to know how owners find PCP, I’m looking at taking out PCP on a new Golf GTD or R-Line. I do about 20k mike a year. Anyone here using PCP?

Hi Ben and welcome.
You might want to start a fresh thread with the specifics of your shortlist to gauge opinions here.
Loads of people here use PCP and it’s prolific through the industry as it’s easy to tailor to an individual.
There are members here that are very experienced with PCP. As a means of financing a car it needs to be stacked up against PCH and bank loans, with the current low interest rate on PCP for Golfs it probably makes a good case for itself right now.

[supadoopa_82]

I’m really interested to know how owners find PCP, I’m looking at taking out PCP on a new Golf GTD or R-Line. I do about 20k mike a year. Anyone here using PCP?

As long as you estimate your mileage accurately...which is pretty hard to do. It should all work out pretty well

[ben1987]

I’m really interested to know how owners find PCP, I’m looking at taking out PCP on a new Golf GTD or R-Line. I do about 20k mike a year. Anyone here using PCP?

Hi Ben and welcome.
You might want to start a fresh thread with the specifics of your shortlist to gauge opinions here.
Loads of people here use PCP and it’s prolific through the industry as it’s easy to tailor to an individual.
There are members here that are very experienced with PCP. As a means of financing a car it needs to be stacked up against PCH and bank loans, with the current low interest rate on PCP for Golfs it probably makes a good case for itself right now.

Thanks mate, I will do.

[Crockers]

My understanding is that after you have paid 50% of the total costs you can VT the plan without any excess mileage charges. That isnt 50% of the payments. So on a 4 year plan that ISN'T after 24 months but it is later.

My advice is read your contract thoroughly. They will come after you for the excess mileage and try to intimate and intimidate but they have no legal rights. It will never go to court and it wont affect your credit rating. That finance company may decide not to do business with you again in the future, but that's it.

If in doubt take legal advice. But if you spend out on that then you might as well cough up the excess mileage.