Excess Mileage

[Ben565]

Looking for a bit of advice. My Aygo is on an access Toyota plan, but the garage I bought it from got the annual mileage wrong (and I failed to spot it in the paperwork) They have allowed 28,000 miles over 3yrs, well I did 20,000 in the first year. I now have only 6,000 miles left before I hit the mileage limit and I'm only just 16 months into a 36 month deal.

As far as I know it is not possible to renegotiate the mileage limit ?

I could keep the car and pay the excess mileage charges at the end, but that could well be a couple of grand. Best option seems to be to pay the settlement fee and hand it back. To settle it early is also about £2k  I'd effectivly be paying for use of the vehicle that I haven't had. 

What would you do? are there any other options ?  

[FROSTYBALLS]

Quite often the dealer will invite customers who are on a PCP to have a review when the plan is partway through - really with the intention to sell another plan and get one into a newer vehicle. This is sometimes at the halfway stage, which for you may be in a few weeks time. Suppose you could enquire whether or when they are likely to do this with you, and possibly see whether you can get into a replacement plan (with a newer vehicle) which more accurately reflects your actual mileage.

[Ben565]

Yeah thats a possibility, maybe a bit soon but worth asking.

[Wiz201]

16 hours ago, FROSTYBALLS said:

Quite often the dealer will invite customers who are on a PCP to have a review when the plan is partway through - really with the intention to sell another plan and get one into a newer vehicle. This is sometimes at the halfway stage, which for you may be in a few weeks time. Suppose you could enquire whether or when they are likely to do this with you, and possibly see whether you can get into a replacement plan (with a newer vehicle) which more accurately reflects your actual mileage.

I've just done this last weekend with six months left but they kept on giving me opportunities to change last year too. Signed finance documents today with 35000 mileage allowance for 42 months.

[mickburkesnr]

I got shafted with this years ago. Didn't realise my paperwork said 20,000 miles over the 3 years. I reached 20,000 in the first year.

However, as far as I know from looking at the Legal Beagles website, the excess milleage charge isn't enforceable. I don't know the ins and outs, but I would recommend looking this up before you negotiate anything.

[Ben565]

Interesting chat with Toyota today (many thanks to Inchcape Burton). They said the excess mileage only really becomes a problem if you hand the car back to Toyota. If you PX it, then your settling the finance so the mileage doesn't matter, it just won't be worth quite as much as it would otherwise have been. So I can keep on truckin regardless of the mileage and then PX it towards the end of the lease (which was my intention to start with) 

 

As of today my settlement figure is £4k, and the car was valued at £3k, so £1k negative equity. That means In a PX the dealership would buy it off me for £3k and I'd have to put in £1k to settle the finance. Effectivley meaning I would then be starting a new deal with no deposit and no px. Might as well wait a while until it evens out a little. 

 

 

[mickburkesnr]

On 01/04/2017 at 3:17 PM, Ben565 said:

As of today my settlement figure is £4k, and the car was valued at £3k, so £1k negative equity. That means In a PX the dealership would buy it off me for £3k and I'd have to put in £1k to settle the finance. Effectivley meaning I would then be starting a new deal with no deposit and no px. Might as well wait a while until it evens out a little. 

This is the problem with finance deals. There is no guarantee that the vehicle will be worth the final payment sum at the end of the agreement with the milleage agreed. The fact you're in negative equity is designed to make re-financing on a new car more attractive to you.

In my case (and this was with Peugeot finance on a 107), at the end of the 3 years I would have to pay £4,250 to buy the car when it was really worth £3,500. This was in 2013. I liked the car, I knew it's history, so I took a bank loan out and paid the car off. It's 2017 and I still have it now and I don't regret coming out of the finance agreement, as the car has never let me down and if I need to use it as PX I'll have a good wedge of cash to offset the cost of a new car.

It's something to consider though, as you can see from other parts of the forum people do end up feeling they get sucked in to an endless loop of getting in to a finance deal then not being able to get a new car outright because they have no assets to use, other than going back on to a finance deal.