Pcp in 2nd year, mileage high is it possible to change or get out early

d4b

Hi there
Currently in 2nd year of pcp and mileage is at 45k has anyone any experience of how to change or exit pcp a year early?

Tia

micks_address

it would depend on what you want to do... if its another pcp then dealer will just give you market value for your car and you can start again using any balance over minimum guaranteed value as equity in the new deal.. if you are intending to walk away then you will have to pay the mileage excess over what your agreed allowance is... in my case the allowance is 25k km and 10 cents per km for anything over that... so could be quite costly depending on your contract..

Shefwedfan

d4b wrote: »

Hi there
Currently in 2nd year of pcp and mileage is at 45k has anyone any experience of how to change or exit pcp a year early?

Tia

It might not be true as I didn't actually do it but I was looking at PCP before I bought my last car. I talked to sales guy and I mentioned to him by going PCP I was more or less keeping myself to that car brand for the foreseeable future.

He said no chance, he said alot of the people he is dealing with he is actually buying them out of there PCP for whatever reason and selling them into a PCP with him. he said it happens all the time.

Not sure if it is true in real life. The garage he owned was vendor for Peugeot/Nissan/Opel and he said if wanted you could go Peugeot PCP but if in 2 years or whatever time frame it didn't suit what he does is move people over to one of the other manufacturers and buys them out of the Peugeot PCP.......he did say you would need to move to another manufacturer because if just going back for another Peugeot it wouldn't work

As mentioned don't know if it works in real life but he did say he does it all the time......

GavMan

Shefwedfan wrote: »

It might not be true as I didn't actually do it but I was looking at PCP before I bought my last car. I talked to sales guy and I mentioned to him by going PCP I was more or less keeping myself to that car brand for the foreseeable future.

He said no chance, he said alot of the people he is dealing with he is actually buying them out of there PCP for whatever reason and selling them into a PCP with him. he said it happens all the time.

Not sure if it is true in real life. The garage he owned was vendor for Peugeot/Nissan/Opel and he said if wanted you could go Peugeot PCP but if in 2 years or whatever time frame it didn't suit what he does is move people over to one of the other manufacturers and buys them out of the Peugeot PCP.......he did say you would need to move to another manufacturer because if just going back for another Peugeot it wouldn't work

As mentioned don't know if it works in real life but he did say he does it all the time......

You're not tied to a manufacturer. If you had a BMW and went to Audi. Audi's finance company will just write a cheque to BMW's finance company for the GFMV amount as part of the deal and 'give' the rest to you as a reduction off the cost price of the new Audi (à la a normal trade in).

soc

Shefwedfan wrote: »

It might not be true as I didn't actually do it but I was looking at PCP before I bought my last car. I talked to sales guy and I mentioned to him by going PCP I was more or less keeping myself to that car brand for the foreseeable future.

He said no chance, he said alot of the people he is dealing with he is actually buying them out of there PCP for whatever reason and selling them into a PCP with him. he said it happens all the time.

Not sure if it is true in real life. The garage he owned was vendor for Peugeot/Nissan/Opel and he said if wanted you could go Peugeot PCP but if in 2 years or whatever time frame it didn't suit what he does is move people over to one of the other manufacturers and buys them out of the Peugeot PCP.......he did say you would need to move to another manufacturer because if just going back for another Peugeot it wouldn't work

As mentioned don't know if it works in real life but he did say he does it all the time......

I was told by a Dealer you can exit PCP at any time, but the mileage will be adjusted pro-rata for your PCP time. He was telling me about someone who recently bought out of their PCP as they were moving country, they far exceeded their annual mileage allowance, and paid QUITE a bit of money in penalties. Eg PCP mileage allowance is 20,000KM/yr. OP has done 45K. By end of Year 2, OP is 5,000 KM over allowance, thus mileage penalty €0.10 x 5,000KM = €500. Not sure how the buy-out value of car is determined.

carsfan2

soc wrote: »

I was told by a Dealer you can exit PCP at any time, but the mileage will be adjusted pro-rata for your PCP time. He was telling me about someone who recently bought out of their PCP as they were moving country, they far exceeded their annual mileage allowance, and paid QUITE a bit of money in penalties. Eg PCP mileage allowance is 20,000KM/yr. OP has done 45K. By end of Year 2, OP is 5,000 KM over allowance, thus mileage penalty €0.10 x 5,000KM = €500. Not sure how the buy-out value of car is determined.

I can't see how this can be correct.
If you buy out your pcp during its term, you are paying off the outstanding finance and the mileage is irrelevant.
Now if the person paid off the finance and then sold the car to the garage as they were emigrating they would take a hit as the car may have been worth less than the finance that was paid off.

grogi

carsfan2 wrote: »

I can't see how this can be correct.
If you buy out your pcp during its term, you are paying off the outstanding finance and the mileage is irrelevant.
Now if the person paid off the finance and then sold the car to the garage as they were emigrating they would take a hit as the car may have been worth less than the finance that was paid off.

It is not always that simple. Don't forget that the PCP agreement might state that there are additional penalties when the PCP is terminated earlier.