What to do?

Headshot

Hi Guys.

I'm on a PCP and thinking of upgrading.

I currently have a 2017 Peugeot 3008 Active and monthly payments of 396 but a mileage of just over 77,500 ( I do a lot of traveling)

I'm thinking of two options

1.
Trade in my 3008 car to the same Peugeot dealer for a 192 Peugeot 3008 Allure plus 4000 cash

I've been offered 21 thousand for my car
417 euro per month

2.
Trade in my 3008 car for a 192 Skoda Karoq Style plus 5000 cash

I've been offered 18 thousand for my car

392 euro per month

I really like the 3008 to drive but i'm slight bored of it so i'm tempted to go down the Karoq route.

I drove it recently and just found it nice/comfortable drive.

Which one should I go for?

Mintoe

Headshot wrote: »

Hi Guys.

I'm on a PCP and thinking of upgrading.

I currently have a 2017 Peugeot 3008 Active and monthly payments of 396 but a mileage of just over 77,500 ( I do a lot of traveling)

I'm thinking of two options

1.
Trade in my 3008 car to the same Peugeot dealer for a 192 Peugeot 3008 Allure plus 4000 cash

I've been offered 21 thousand for my car
417 euro per month

2.
Trade in my 3008 car for a 192 Skoda Karoq Style plus 5000 cash

I've been offered 18 thousand for my car

392 euro per month

I really like the 3008 to drive but i'm slight bored of it so i'm tempted to go down the Karoq route.

I drove it recently and just found it nice/comfortable drive.

Which one should I go for?

Has either the Peugeot or skoda dealer realised your car has almost 80,000 KLM’s on it as I thought you can’t get a pcp for anywhere near that monthly doing that much annual mileage?

Lantus

Mintoe wrote: »

Has either the Peugeot or skoda dealer realised your car has almost 80,000 KLM’s on it as I thought you can’t get a pcp for anywhere near that monthly doing that much annual mileage?

That's normal mileage? A very slight deduction in value would apply, nothing to worry about.

Your putting in a huge cash deposit? Presumably as both cars are significantly more expensive.

What if you paid a higher monthly?

What is your daily km? What kind of roads? Passengers, family etc...

Hurrache

Lantus wrote: »

That's normal mileage?

It's very high mileage for a 2017 car, plus doesn't PCP limit the mileage to something like 15/16,000km per year? Peugeot have an excess of 8c per km, which would work out over €3,500 if the OP had say an allowance of 16,000km per year. (edit: if the car was being handed back as the OP say below)

Headshot

Mintoe wrote: »

Has either the Peugeot or skoda dealer realised your car has almost 80,000 KLM’s on it as I thought you can’t get a pcp for anywhere near that monthly doing that much annual mileage?

The mileage does not matter on the PCP unless you are handing the car back and walking away. The car will obviously be worth less with higher mileage which is the case with my car now.

Lantus wrote: »

That's normal mileage? A very slight deduction in value would apply, nothing to worry about.

Your putting in a huge cash deposit? Presumably as both cars are significantly more expensive.

What if you paid a higher monthly?

What is your daily km? What kind of roads? Passengers, family etc...

I never enquired about higher monthly as i'm more interested in lower monthly payments

I do 160KM daily (4 days a week). Poor secondary roads and no passenger or family

Mintoe

Headshot wrote: »

The mileage does not matter on the PCP unless you are handing the car back and walking away. The car will obviously be worth less with higher mileage which is the case with my car now.

You obviously haven’t read and understood the t&c’s of your pcp contract.
When you started your pcp contract, an agreed maximum mileage limit would have been specified and if you go above this there’s a significant charge. I’d doubt you got this monthly price with a mileage allowance anywhere near 40k KLM’s per year.
Also the mileage does matter if you’re changing and going again with another pcp.

Headshot

Mintoe wrote: »

You obviously haven’t read and understood the t&c’s of your pcp contract.
When you started your pcp contract, an agreed maximum mileage limit would have been specified and if you go above this there’s a significant charge. I’d doubt you got this monthly price with a mileage allowance anywhere near 40k KLM’s per year.
Also the mileage does matter if you’re changing and going again with another pcp.

I suppose it depends on the Garage. For example I've been told by Skoda dealer that they don't care about the mileage on a PCP. I have that in writing as well.

Its annoying that this thread has turned into PCP debate/argument where as I was hoping to get some advice my original OP

Hurrache

Headshot wrote: »

I suppose it depends on the Garage. For example I've been told by Skoda dealer that they don't care about the mileage on a PCP. I have that in writing as well.

Its annoying that this thread has turned into PCP debate/argument where as I was hoping to get some advice my original OP

But isn't it up to the finance company as opposed to the garage who'll be taking it as trade?

I can understand you're annoyance in thinking it's gone off topic, but if there is an issue with the PCP your budget will be affected.

elbyrneo

Mintoe wrote: »

You obviously haven’t read and understood the t&c’s of your pcp contract.
When you started your pcp contract, an agreed maximum mileage limit would have been specified and if you go above this there’s a significant charge. I’d doubt you got this monthly price with a mileage allowance anywhere near 40k KLM’s per year.
Also the mileage does matter if you’re changing and going again with another pcp.

Huh? Wrong advice you are giving there!

Mileage doesn't give a "charge" unless you hand the keys back and walk away. You would only hand the keys back if a) the value of the car plus was less than the GFMV or b) if your financial circumstances change and you can't afford or get a bridging loan or c) you are mad and like throwing away money.

Otherwise mileage is simply a factor of trade in value if you are trading up into a new PCP deal. Just like it is in and trade in deal. And if you buy the car outright for the GFMV again mileage means diddly squat.

Crazy how many people dont understand PCP!!!

commited

I know you aren't looking for this advice but I think it's financial suicide to run a new car doing that sort of mileage. If you want the comfort of a warranty, you could buy a 2-3 year old Hyundai and switch once it hits 5 years old with a much lower cost - year 1-3 depreciation is always very heavy, especially when loading miles onto a car.

Lantus

Headshot wrote: »

The mileage does not matter on the PCP unless you are handing the car back and walking away. The car will obviously be worth less with higher mileage which is the case with my car now.





I never enquired about higher monthly as i'm more interested in lower monthly payments

I do 160KM daily (4 days a week). Poor secondary roads and no passenger or family

With windy roads just be cautious on those suv type cars as the height tends to promote more roll than a saloon or normal car. Also avoid low profile tyres as they will give a poor ride and be much more prone to damage and punctures.

I might consider a 2nd hand diesel and go a bit bigger. Or just keep what you have and pay off.

Just be mindful on giving cash versus a higher monthly. Check the interest payments.