GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: Mohsin on 03 December 2014, 09:42
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It will be a full year of ownership at the end of March and I will be well over my yearly allowance. Probably even by a couple of thousand miles! I'm normally okay with judging how many miles I do per year but this year has seen some unforeseen long journeys.
Does anyone know or have experienced how strict a leasing company is on these excess mileage charges?
My terms and conditions state it has to be paid at the end of the whole term so I may even still be within the total mileage limit at the end of the term but just worried I won't.
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http://www.mileagecorrectionuk.co.uk/
:whistle:
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They will definitely charge you if its in the contract and they will apply the charge for every mile in my experience.
Its easy money for them.
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If you will likely be buying another VW from the dealer at the end of the deal then I shouldn't worry about it to much. You can negotiate losing this cost in the new car deal in my experience. They will want your business again afterall.
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I'm also over my mileage allocation, but I'm only on year 1 of a 3 year contract, so I'm not panicking right now.
I have wondered though whether it's more cost effective to phone the finance company and correct the mileage estimate early or whether it's best to just leave it and sort out the surcharge at the end. Does anyone have any experience of that before or know which is the cheapest route?
Thanks
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Is this a lease as a company car or a pcp type lease where you are liable for the excess mileage?
If it is the latter, the excess mielage charge will be listed in the contract normally a few pence per mile...
So if, you.re 2K over and the excess mileage rate is, for example, 10p per mile your cost is £200...
It isn't too bad, depending on the excess mileage rate...
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I know others on here have worked the lease costs on some policies and found that a 10k pa lease is cheaper to run to 20k pa and pay the surcharges...
I'm guessing because for a 10k per year there are say, 1 service per year and only 2 sets of tyres over the duration.
Smarter lease companies will realise that as well as the depreciation to the value of the car with excess mileage, there will also be additional maintenance costs...
Mind you, most of you don't seem to have tyres and maintenance on your contracts, so it will only be depreciation of the value of the car.
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If it's a personal/business lease then yes, charges are applied based on the contract excess mileage rate. If it's a PCP with excess mileage charges then you only pay these if you hand the car back to the finance company. Even then I've heard they are more flexible than the lease firms, allowing more excess miles before they charge.
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You can always voluntary terminate if you have zero equity in the car after the 'halves and thirds' period and the excess mileage becomes irrelevant. If you put a big deposit in, then this is unlikely to be an option.
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If it's a personal/business lease then yes, charges are applied based on the contract excess mileage rate.
So if you hire it, they want a piece of you.
If it's a PCP with excess mileage charges then you only pay these if you hand the car back to the finance company.
If you buy it yourself then either you pay more for it (to keep it) than the (higher) mileage would indicate or you pay the excess mileage fee if you hand it back.
Basically, one way or another you are paying for the depreciation on the vehicle that you cause.
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I set up mine for 5000 miles a year, even though I will do more than 15k miles a year.
Working out the penalties for the mileage at 7.2p a mile, it was over £400 cheaper to do it this way rather than pay the monthly payments for a 45000 mile a year PCP.
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(oops I can't do maths this early in the morning)
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For info, its a personal lease deal and not from VW. The extra mileage charge is 18p per mile!!
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http://www.mileagecorrectionuk.co.uk/
:whistle:
Eeerrm, really?? :shocked:
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For info, its a personal lease deal and not from VW. The extra mileage charge is 18p per mile!!
Cheap then for a bit of flexibility.