[MarkG_M5Comp]

Well, if this all works out for us then remember who started this thread having discovered the revaluation.

If this doesn't work out as the pessimists believe, forget who started this 5 thread but remember no guarantees are included within the opening statements.

Happy New Year!

[Beancounter_74]

Originally Posted by Mark1966

Anybody that thinks they can get away with going way over there initial agreed mileage I suspect will be in for a shock come trading in time.

BMW will wriggle out of this very soon unless I am sorely mistaken.

It's not the trade in's that represent the problems.

To get into my 335dx, I traded in after 15 months my 520d which was on a 10k p.a. PCP, with.....32k on it....so pro rata 19,500 miles over where I should have been.
All it meant was that the deal I did on the new car took the trade in value of the higher mileage 520d and the outstanding finance.

If you intend to buy the car at the end of the term for the GMFV then again the mileage is irrelevant, though there would need to be a compelling case to buy a car which if you have excess mileage would imply the car is over priced and 'underwater'.

Going over the agreed mileage only really represents a problem if you are handing the car back at the end of the term of VT'ing it.

[Mark1966]

Originally Posted by Beancounter_74

It's not the trade in's that represent the problems.

To get into my 335dx, I traded in after 15 months my 520d which was on a 10k p.a. PCP, with.....32k on it....so pro rata 19,500 miles over where I should have been.
All it meant was that the deal I did on the new car took the trade in value of the higher mileage 520d and the outstanding finance.

If you intend to buy the car at the end of the term for the GMFV then again the mileage is irrelevant, though there would need to be a compelling case to buy a car which if you have excess mileage would imply the car is over priced and 'underwater'.

Going over the agreed mileage only really represents a problem if you are handing the car back at the end of the term of VT'ing it.

Yep sorry meant 'handing back time'.

I wonder what % of owners (or any make) that have purchased on PCP actually just hand their cars back? I suspect it wont be very high on here but overall I am not so sure.

[Occean]

I've just done this as well - thought they iterated that it is only valid if returning the car, not on px and it doesn't change the gfv

[Beancounter_74]

Just changed mine today from 10k p.a to 20k p.a, has the potential to save me over £3,500 in excess mileage should I end up handing it back, though I'll probably trade it in.
Nice to have it amended though and better than had I set it that way initially as payments would have been far higher each month.
Thanks for the heads up MarkG335

[Broncho]

I've not read it all but when trading it in what are the implications with regards to valuations against the likes of CAP and glass' bottom which is probably how they'll be valued, if not WBAC?

[DarrenL_007]

Hi Guys, just changed mine from £8k to £15k and I was on the phone for little more than 5 minutes. The lady did mention the word "concessionary" around 7 times and said that it could be withdrawn at anytime.

[Mattt1]

Originally Posted by Broncho

I've not read it all but when trading it in what are the implications with regards to valuations against the likes of CAP and glass' bottom which is probably how they'll be valued, if not WBAC?

Has no difference - the car is valued and any equity (value minus GFV) is transferred as deposit to next car.

A higher mileage car will obviously have less equity than a low mileage car.

If your high mile car is worth less than GFV then just hand it back (and pay no penalties thanks to increased mileage allowance).

[Broncho]

Originally Posted by Mattt1

Has no difference - the car is valued and any equity (value minus GFV) is transferred as deposit to next car.

A higher mileage car will obviously have less equity than a low mileage car.

If your high mile car is worth less than GFV then just hand it back (and pay no penalties thanks to increased mileage allowance).

I'm going to be sceptical after being in motor trade financial services but I'll be happy to be proved wrong.

[Nobby Clark]

OK, I'll ask the dumb questions.

At the end of the PCP term, why does it matter if you are over your mileage?

I can't believe many folk if any would just hand the car back. You should (may be this is the bad assumption) get more than the GFMV if you sell the car and the same should apply if you trade it in.
In the case of selling and trading in, the market value may be affected by high mileage but that's not necessarily the same as exceeding your agreed mileage.

If you have to VT, a marginal variance in mileage should have negligible effect for the same reasons above.

The bit I don't get ( or may be I do and I'm about to answer my own question) is why it seems so many people deliberately plan to VT. Is it because they simply understate mileage to get a good deal and it's basically bending the rules to get a deal?

[....,,,,..,,..]

Originally Posted by Nobby Clark

OK, I'll ask the dumb questions.

At the end of the PCP term, why does it matter if you are over your mileage?

I can't believe many folk if any would just hand the car back. You should (may be this is the bad assumption) get more than the GFMV if you sell the car and the same should apply if you trade it in.
In the case of selling and trading in, the market value may be affected by high mileage but that's not necessarily the same as exceeding your agreed mileage.

If you have to VT, a marginal variance in mileage should have negligible effect for the same reasons above.

The bit I don't get, is why it seems so many people deliberately plan to VT. Is it because they simply understate mileage to get a good deal and it's basically bending the rules to get a deal?

It's because it forms part of the contract.

With mileage and condition being main inputs to a car after say 4 years.

Your contract says you will not exceed say 40k miles at the end of your 4 year contract.

So pretty much across the board with all manufacturers, dealers and lease companies, they have a financial penalty clause on excess mileage.

This allows them to better predict future value, so that they don't loose money.

Also it's a 3 series, you will be very lucky to be in positive equity and if you are it likely won't be by much and will be at end of term, - based on recent trade ins and comments from forum members.

[Nobby Clark]

Yup, I get all that but it's only a penalty if you hand it back. Unless you have had a change in circumstance that meant you can't avoid an increase in mileage, predicted the mileage wrongly there hold be no real reason to exceed mileage- unless you're trying to work the system.
You get a GFMV if you have done everything you agreed to so there should be no surprises.

[Beancounter_74]

Originally Posted by Nobby Clark

Yup, I get all that but it's only a penalty if you hand it back. Unless you have had a change in circumstance that meant you can't avoid an increase in mileage, predicted the mileage wrongly there hold be no real reason to exceed mileage- unless you're trying to work the system.
You get a GFMV if you have done everything you agreed to so there should be no surprises.

Agreed, There 'should' be no surprises, but having personally been in a negative equity position with an under mileage E60 a few years ago, it's better safe than sorry if the market goes against you.

Excess mileage charges are basically a way to rebalance the PCL/PCP economics. By not having to pay them in a VT or end of term hand back, then there is upside if you.

[....,,,,..,,..]

Originally Posted by Nobby Clark

Yup, I get all that but it's only a penalty if you hand it back. Unless you have had a change in circumstance that meant you can't avoid an increase in mileage, predicted the mileage wrongly there hold be no real reason to exceed mileage- unless you're trying to work the system.
You get a GFMV if you have done everything you agreed to so there should be no surprises.

Remember that the GFV is the amount you need to pay to own the car, it is not what they will give you for it.

I realise you are aware of it, howeve it's surprising how many assume that will be what there car will be worth real terms if they use it as a future deposit.

Then get a shock when the dealer offers £2k under GFV...

[Tengocity]

Originally Posted by Brigand

Remember that the GFV is the amount you need to pay to own the car, it is not what they will give you for it.

I realise you are aware of it, howeve it's surprising how many assume that will be what there car will be worth real terms if they use it as a future deposit.

Then get a shock when the dealer offers £2k under GFV...

But it's the same thing as you'd just hand it back to them instead at the end of the deal, rather than trade it in.

[....,,,,..,,..]

Originally Posted by Tengocity

But it's the same thing as you'd just hand it back to them instead at the end of the deal, rather than trade it in.

Yeah totally agree, just the other day someone (I know here) was making an assumption that their current car would have equity in it.

It just seems people assume what they owe the finance company is what the car is worth.

I always assume less and save accordingly.

[MarkG_M5Comp]

I've had 5 PCPs and never VTd although I will with this one. The reason being that the used value has plummeted and I'm very unlikely to ever get to a positive situation, at least not by 60,000 miles by which time I need to change.

In the past I've had 4 year PCPs and swapped after 3 years, either positive equity or break even so I've just swapped. This is also why I keep deposits low or nil - I'd just lose it.

The first ever PCP was a Mazda 5, GFV £5995 after 3 years, bought the car and sold it for £9500. Now THATS how it should work!

[teaston]

I have to thank you again for this Mark!

Tony has now brought my deal down by £42pm with 10kpa!

I am very chuffed indeed!

[MarkG_M5Comp]

Originally Posted by teaston

I have to thank you again for this Mark!

Tony has now brought my deal down by £42pm with 10kpa!

I am very chuffed indeed!

Most welcome...

We need a meet - spend some of this cash we're all saving!! Drinks?

Happy New Year all...

[teaston]

I forgot to say Tony told me why BMW FS are doing this concessionary mileage increase, apparently they are trialing it to try to be more competitive with Mercedes!

I hope their trial last until at least March!

[evan15281]

is this something Mercedes have been offering?

[bodtwo]

Originally Posted by evan15281

is this something Mercedes have been offering?

Not to my knowledge having not long ago handed them a cheque for £1500 for over mileage. Not complaining though, I'd factored that in and put it away monthly.

MB were sticklers on condition of car on hand back with regards to alloys, maybe that was a money earner for BAC though.

With respect to OP, called yesterday after one month in and changed it to 25k PA, which I was told was maximum on four year PCP. Will b3 interesting to read paperwork when it arrives.

Many thanks Mark if this pans out, many thanks anyway for sharing.