Hi Guys,

So I have a Red Edition 2015 on PCP with an annual milage allowance of 8,000.  When I got this I was going to work by train and had a low milage.  However after I got the car I changed jobs now drive to work.  I have had the car since Nov 2015 and have now done 19000 miles.  I'm obviously looking at putting another 14000?? miles onto that before the end of the agreement next November.

I'm worried that this is going to cost me a bomb either with a penalty to the finance company or to a lower trade in value.

What options do I have and what would you suggest?

Thanks

Within your pcp agreement should be a statement on how much per mile you will be charged if over your agreed limit.
Usually if you run your pcp plan to the full period of the agreement then you will be liable for payment of the excess mileage.
If you chop it in early then you should not be required to pay excess mileage.
Ford are doing excellent p/x deals at present and are throwing 0% finance, no deposit and good discounts / free upgrades out for 67 plate cars.
I'm chopping my 15 plate ST in 6 months early and will also get the difference between my valuation and finance back in my hand.

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normaly 6-8p a mile extra over the allowance.

I think far too many people enter into these deals with no idea how they work, it's important to understand the basics. And the most important thing to think about is 'at the end of the term what will I be doing?'. If I the answer is giving it back and walking away then think carefully about your mileage and really look after it. If you plan to get a new motor on PCP or sell it on at the end then consider your mileage but you don't need to be bang on. U.K. average has gone up but used to be 10-12K/annum. The lower the mileage, the lower the monthly payment - bigger balloon at the end. My mileage is set at 8K but I am closer to 10K, I'm not worried as I'll never just give the car back.

You can part exchange a Ford at ANY garage, it doesn't have to be a Ford garage. It could be Audi, Skoda, Honda, wherever you want. You request a settlement figure and go shopping. The garage you wish to buy from will then offer you money for your car, if that amount is over your settlement figure then they will pay off the finance company for you and give you the remainder to use as a part exchange deposit on a new car and new PCP. If it is below that figure then you will need to find the difference and put it towards the dealers money to pay off the finance. Then you start another PCP using your own money as a deposit if that is required.


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