Gti Mileage on PCP

[Crunch]

Hi

I'm new to the forum and looking at getting a brand new gti performance dsg. I've got a test drive on Tuesday and know the inevitable will happen and I will want to buy one there and then! I've currently got a company car, but am seriously thinking of opting out and taking the car allowance to get a GTI on PCP. The car allowance will cover the car and insurance and with the money saved in tax at about £150 a month I will put aside for maintenance and help with the final payment if I decide to do it. Now on the PCP deal I have stated 15,000 miles per year but it's really hard to judge as my work place changes every 18 months/2 years. It could be 20,000 miles a year or could potentially be as low as 5000 miles. Should I worry too much about the miles I opt for on the PCP? I think 15000 it's in the ball park. I get paid 12p a mile from my house to place of work from the company i work for so that will help on the fuel bill.

Thanks

[kmpowell]

Mileage on a PCP has two considerations:

1. If you plan to not pay the balloon at the end of the term and hand the car back, then on the Golf the milage overage is charged at 9.6pence per mile over the agreed amount. So if you take a PCP over 4 years and your stated milage is 15k a year but you do 20k a year, then you will be liable for 20k(4x5k) 'overage' at the end of the term.

2. If you don't plan to keep the car at the end of the term AND you don't plan to hand it back to VW (but instead sell privately or traded in before the end of the PCP, then most will say the milage is irrelevant. I however will say that you should whack your milage up to the maximum you can. A higher milage on the PCP will lower your balloon and increase your monthly payment, which on the face of it seems a bad thing... but what you will be doing is significantly reducing the interest you are paying on the balloon (and the over the term), and you'll be paying more equity in your monthly payment.

IIWY I would put it down as 20k per year, it'll work out better in the long run whatever your situation might be. 

[mcmaddy]

Mileage on a PCP only matters if you hand it back at the end and have gone over. It doesn't matter if you buy at the end of the PCP or trade it in. If you trade it in its only worth what it's worth and if you buy from the balloon payment you pay the amount of the balloon. I've never heard anyone be charged on top of the balloon for having excess mileage.

[Crunch]

Thanks for the reply. So say I do put down 20k miles a year but do under the projected 80k miles in total the balloon payment will be less if I decide to buy it at the end?

I dont see how they can charge you the excess mileage at the end if you are opting to buy it as in theory you could be paying over the market value if you do more miles then first quoted.

[kmpowell]

Mileage on a PCP only matters if you hand it back at the end and have gone over. It doesn't matter if you buy at the end of the PCP or trade it in. If you trade it in its only worth what it's worth and if you buy from the balloon payment you pay the amount of the balloon. I've never heard anyone be charged on top of the balloon for having excess mileage.

This is right, I've reworded my reply which was a bit confusing.

[Talk-torque]

Mileage on a PCP only matters if you hand it back at the end and have gone over. It doesn't matter if you buy at the end of the PCP or trade it in. If you trade it in its only worth what it's worth and if you buy from the balloon payment you pay the amount of the balloon. I've never heard anyone be charged on top of the balloon for having excess mileage.

All this is correct. 👍🏻

[mcmaddy]

Mileage on a PCP only matters if you hand it back at the end and have gone over. It doesn't matter if you buy at the end of the PCP or trade it in. If you trade it in its only worth what it's worth and if you buy from the balloon payment you pay the amount of the balloon. I've never heard anyone be charged on top of the balloon for having excess mileage.

This is right, I've reworded my reply which was a bit confusing.

👍👍

[kmpowell]

Thanks for the reply. So say I do put down 20k miles a year but do under the projected 80k miles in total the balloon payment will be less if I decide to buy it at the end?

Yes, the balloon is fixed, and worked out based on the length of the term you opt for and the milage you state you will do within the term.

A lot of people get sucked in by the monthly cost, but the true figure you should base it on is the total cost over the term.

On a 5DR DSG Performance:

The balloon after 4yrs are currently stated as:
5k miles a year = £12,921.30
10k miles a year =£12,269.70
15k miles a year = £10,872.90
20k miles a year = £9,576.00
25k miles a year = £8,545.50
30k miles a year = £7,515.00

[king monkey]

Those GFVs are interesting. Can’t believe the difference.

[Crunch]

Yes I always look at the total amount payable, atm I've had a quote back as £32k total amount after 4 years and 15k a year. I need to get at least 3 more to get a good indication.