Are there any options?

c43amg84

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Ending my PCP on my C43 and due to work location change I have gone over the mileage by about 11k (yes I know)

As I can see it I have a couple of options available:

1) Pay the excess mileage costs and hand the car back into BCA
2) Sell the car

The problem with option 2 is that the best offer I have received is below the settlement figure, and also the car is due its second service so I will have to put more money into a car I am getting rid of!

Does anyone know of any other ideas that I will stop me from losing so much money on a car I am getting rid of?
 

GeeJayW

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Q. How does the charge for excess mileage compare to the difference between the offer you've received and the settlement figure (plus service)?
 
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Deletedmember130310

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why pay for the service if you are selling the car?
 

st13phil

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When you say "sell the car" are you talking of a straightforward disposal, or a trade in?

A trade in may allow you to fudge the numbers, but at the end of the day you're going to pay for those extra miles.
 
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c43amg84

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Q. How does the charge for excess mileage compare to the difference between the offer you've received and the settlement figure (plus service)?

15p per mile +VAT
 
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c43amg84

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When you say "sell the car" are you talking of a straightforward disposal, or a trade in?

A trade in may allow you to fudge the numbers, but at the end of the day you're going to pay for those extra miles.

So if I traded in my car with Mercedes to be bundled in my new car deal they were saying it makes me £3,000 in negative equity. My mileage is £2000
 

elan362

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with PCP, extra miles only count if you hand back to finance company.
if you buy the car - bu payying the GFV to the ginance firm, then there is no penalty or charge for going over the milage.
and If you do a trade in, they don't matter - as the car is "sold to the dealer" and they need to settle the GFV with the finance firm (they are essentially buying it from the finance firm) however the trade in you get might be less than the GFV.... but the dealer can fudge yur new car deal to disguise the cost of the additional miles.

how much is the penalty? 20p/mile? X11k=£2200.
 

st13phil

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So if I traded in my car with Mercedes to be bundled in my new car deal they were saying it makes me £3,000 in negative equity. My mileage is £2000
So basically, you're saying that the extra 11k miles is going to cost you £2,000 if you hand it back to the finance company, and that in addition against a new car MB are offering £1,000 less than the guaranteed future value (GFV)?

If that's the case, you minimise your loss by buying it at the GFV price, as you then don't have to pay the additional mileage charge.
 
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c43amg84

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with PCP, extra miles only count if you hand back to finance company.
if you buy the car - bu payying the GFV to the ginance firm, then there is no penalty or charge for going over the milage.
and If you do a trade in, they don't matter - as the car is "sold to the dealer" and they need to settle the GFV with the finance firm (they are essentially buying it from the finance firm) however the trade in you get might be less than the GFV.... but the dealer can fudge yur new car deal to disguise the cost of the additional miles.

how much is the penalty? 20p/mile? X11k=£2200.

The dealers are telling me that the best they can do is offer me 27k for my car and the finance left is over 28880 on it, so it leaves me in a worse position that paying off the mileage. I am trying to do a deal on a ecoupe and thought they would be able to absolve the car into the deal, but it's making the deal even worse!
 
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c43amg84

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So basically, you're saying that the extra 11k miles is going to cost you £2,000 if you hand it back to the finance company, and that in addition against a new car MB are offering £1,000 less than the guaranteed future value (GFV)?

If that's the case, you minimise your loss by buying it at the GFV price, as you then don't have to pay the additional mileage charge.

What as in buy my car at the settlement figure?
 
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Deletedmember130310

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I know it doesn't help with this problem is exactly why I will never use PCP
 
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Deletedmember130310

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The dealers are telling me that the best they can do is offer me 27k for my car and the finance left is over 28880 on it, so it leaves me in a worse position that paying off the mileage. I am trying to do a deal on a ecoupe and thought they would be able to absolve the car into the deal, but it's making the deal even worse!

i calculate you are marginally better of with that deal (paying the finance company £28,880 - 27000 = 1880 more than the car is worth) to keep the car than pay the excess mileage (11000 miles at 0.15p + vat = £1980.

At least then you own the car which you should be able to sell on for more than £27k.

This assumes you have £28,880 available to pay the finance company...
 

GeeJayW

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The dealers are telling me that the best they can do is offer me 27k for my car and the finance left is over 28880 on it, so it leaves me in a worse position that paying off the mileage. I am trying to do a deal on a ecoupe and thought they would be able to absolve the car into the deal, but it's making the deal even worse!
Firstly, it's not your car, it's one you've been paying for the use of for the last n-years. Your payments are/were based on an assumed condition at the end of the deal. With an extra 11,000 on the clock, the condition of the car now is not as agreed. The shortfall in valuation is pretty much the same amount as the mileage charge. If that's the trade-in deal and no additional fee to pay, that's about where you're going to end up.

If you could sell the car privately for somewhere nearer the amount outstanding on the the finance deal, then that might be a way forward, but you may not get the same deal on the E-Class Coupe. The dealer will need to make money somewhere along the way, so whilst they may be willing to work with you, they will only go so far.

In the end do a few sums and go with whatever works best for you, but the upshot is you won't get away with 11,000 extra miles for free, so something has to give.
 

elan362

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^^^ this.
with the PCP calculation, the GFV based on a expected annual milage and on this basis, an assumption is made the car would be worth value £x at the end of the term... if you are 11k over on the expected miles, the car is worth <£X now..
If you had managed to better estimated your mileage at the actual mileage (rather than underestimating) the GFV at the time of the agreement would have been lower (perhaps £x-£2K) but you would have offset this by paying additional monthly payments throughout the term of the agreement (e.g. £2k/36) that would have left you in the clear (from the perspective of not having to pay excess mileage charges).... so it is a case of short term (monthly saving) vs. having to pay it as a lump sum at the end. you get to the same place albeit a different way
I think this is a case of having to suck up... as the shortfall needs to be paid for somehow.
 

CRBXF

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Re finance the balloon payment and then take you time to work out what to do.

11k over the mileage suggests to me you kept the mileage figure low to get a better monthly repayment....

I always buy the car at the end of the pcp as then the mileage isn’t an issue


Sent from my iPhone using Tapatalk
 
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Deletedmember130310

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Re finance the balloon payment and then take you time to work out what to do.

11k over the mileage suggests to me you kept the mileage figure low to get a better monthly repayment....

I always buy the car at the end of the pcp as then the mileage isn’t an issue


Sent from my iPhone using Tapatalk

From first post...

due to work location change I have gone over the mileage by about 11k (yes I know)
 

GeeJayW

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From first post...

due to work location change I have gone over the mileage by about 11k (yes I know)
If one knows that the mileage limit is going to be exceeded, then a little early financial planning (save just a few quid a week), will help ease the pain at the end.

Another issue that can come up when circumstances change, is going over the agreed annual mileage defined in one's insurance policy. We were doing more than we had expected, so called our insurance company, all sorted at no additional cost. However, had we needed to claim and not told them about the extra mileage (time on the road and increased exposure to risk), then they are presented with an opportunity to wriggle out of the deal.
 
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Deletedmember130310

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If one knows that the mileage limit is going to be exceeded, then a little early financial planning (save just a few quid a week), will help ease the pain at the end.

Another issue that can come up when circumstances change, is going over the agreed annual mileage defined in one's insurance policy. We were doing more than we had expected, so called our insurance company, all sorted at no additional cost. However, had we needed to claim and not told them about the extra mileage (time on the road and increased exposure to risk), then they are presented with an opportunity to wriggle out of the deal.

quite - the OP only needed to make a quick call to MB FS and all this aggro could have been avoided
 

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