21 March 2017 at 9:11 pm #110115
I have a car with Kia on a PCP agreement. My mileage limit was 18,000 over 3 years, so 6,000 each year. I am half way through and already almost at 18,000.
I was under the impression that exceeding mileage limit was not really an issue if i was to change my car for a new one after 3 years. At 14.9p per mile i am petrified i will need to pay thousands when the 3 years is up.
23 March 2017 at 1:13 pm #110241
Hi Brian. If you give the car back to the finance company at the end of the agreement, they will charge you 14.9p for every mile (or £149 per 1,000 miles, if that’s easier to work out).
If you sell the car either privately or as a part-exchange, you will have to pay the settlement figure (the balloon/GMFV) back to the finance company but you will not be charged anything else. For a complete explanation of your options at the end of a PCP, the article linked below should tell you all you need to know.
Read about how PCP car finance works