[Tengocity]

Originally Posted by DaveA

Thanks for confirming..

I thought I was going daft, when reading through, but it makes sense now...

So, the advice is, if you are creeping over, is simply to call them and ask for the concessionary change in mileage allowance so you can avoid the excess charges at the end of the term (or if you VT beforehand..)...

Yes, that's what I did. Nothing to be lost anyway, as I am currently 10k over where I should be at 2 years! The fact is I still expect my car to be worth more than the final payment so I'm still effectively eating in to my own potential "equity" at 4 years, so I really don't think it will actually help me in anyway.

[DaveA]

Originally Posted by Tengocity

Yes, that's what I did. Nothing to be lost anyway, as I am currently 10k over where I should be at 2 years! The fact is I still expect my car to be worth more than the final payment so I'm still effectively eating in to my own potential "equity" at 4 years, so I really don't think it will actually help me in anyway.

Yeah, I am kind of interested to see how my car value goes in the next 6 to 12 months... I am 23/24 payments into a 35 + final term... Usually, cars don't lose too much of their value in year 3 (they do most of the depreciation in years 1 and 2, in my experience) and so I am expecting the OFP to be more or less on the value of the car...

[HiBee]

Pity this thread didn't come up a bit earlier before i handed mine back.

I had an excess mileage of 10k & was charged for.

Need to ask BMW FS nicely, to adjust my current motors allowance from 10k to 15k.

[Geo's comps]

This is good news but also throws up a dilemma

I'm 9 months into my agreement and already 2000 + over my mileage, I'm not sure in 3/4 years time if I will be keeping my 4 series which I'm currently happy with or changing it for something better, do I call bmwfs and Adjust my mileage in accordance to what im doing or leave it untill the end of my agreement and look at new car..

[teaston]

Originally Posted by Geo's comps

This is good news but also throws up a dilemma

I'm 9 months into my agreement and already 2000 + over my mileage, I'm not sure in 3/4 years time if I will be keeping my 4 series which I'm currently happy with or changing it for something better, do I call bmwfs and Adjust my mileage in accordance to what im doing or leave it untill the end of my agreement and look at new car..

You might as well do it now, you have nothing to lose and everything to gain!

[Broncho]

Genuine question but do some of you not know how many miles you are going to do when you sign up?

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

Originally Posted by Broncho

Genuine question but do some of you not know how many miles you are going to do when you sign up?

Pretty much so.

I based mine of previous years.

However, now going to London more often, so that's a train trip.

Mine has dropped by about 5k below what I expected / planned it to be.

However, next year is another year and it could go up by 10k...

Edit:

For example 4 X Lossiemouth trips (in laws) is circa 4K miles.
Then 6 X trips to Newcastle (my parents) is say 2.5k miles.

Throw in a bunch of Anglesey, Cambridge and Heathrow trips, that would put me over..

[Broncho]

Originally Posted by Brigand

Pretty much so.

I based mine of previous years.

However, now going to London more often, so that's a train trip.

Mine has dropped by about 5k below what I expected / planned it to be.

However, next year is another year and it could go up by 10k...

I suppose it's a balance between paying over the odds incase you don't use the mileage allowance and then not paying too much in mileage charges, I think it's about time the finance products became more flexible.

[MarkG_M5Comp]

I thought I would do 22k and signed up for 20k and took the risk - so far I've done 24k p/a due to two European trips of 3.5k each!

I tend to find the mileage drops in the 2nd and 3rd years of ownership as I take less 'for the hell of it' drives!

[teaston]

Originally Posted by Broncho

Genuine question but do some of you not know how many miles you are going to do when you sign up?

Yes, when I ordered my current car I was part time self employed doing around 13kpa, then by the time I got the car I was full time self employed and now do about 23kpa!

[Tengocity]

I based mine in previous years mileage, and you'd have thought 25k per year would be enough! But our circumstances changed, and so I use mine a lot more for business use, and after selling the Z4 we don't share weekend use across 2 cars, and so hence averaging 30k per annum now.

[JustChris]

Originally Posted by MarkG335

I thought I would do 22k and signed up for 20k and took the risk - so far I've done 24k p/a due to two European trips of 3.5k each!

I tend to find the mileage drops in the 2nd and 3rd years of ownership as I take less 'for the hell of it' drives!

Indeed, although the first few months are shockers!! Every excuse to go for a spin.

[teaston]

BMW FS have replied to TRL regarding this. This what they've said:

"Thank you for your recent communication.

We are able to change mileage on a PCP on a concessionary basis. If a customer was to VT at that point their mileage would be considered and charged pro rata if they are over their designated allowance. The answer to the questions are both yes, they can currently have addtional mileage at no extra cost to a certain amount. If a customer VT's yes they can be charged pro rata.

Hope this helps.

Yours sincerely

BMW Financial Services"

So they say the mileage increase is concessionary but then they say you can get charged pro rata! I don't understand what they mean :

[simon.]

Nice one. Done mine, mad not too & if I sell / trade then not effected but if I VT / hand back then I am covered just incase.

[JustChris]

I am still bamboozled. I'm going in tomorrow to sign up the finance.

I was going to mark as 20,000/yr.

What do I do now?

[Broncho]

Originally Posted by Chris10Bimmers

I am still bamboozled. I'm going in tomorrow to sign up the finance.

I was going to mark as 20,000/yr.

What do I do now?

What's the excess mileage charge?

[Tengocity]

Originally Posted by Chris10Bimmers

I am still bamboozled. I'm going in tomorrow to sign up the finance.

I was going to mark as 20,000/yr.

What do I do now?

Nothing, just leave it if that's what you think is right. Id rather be under my mileage as you're then improving your equity position.

[teaston]

Originally Posted by Chris10Bimmers

I am still bamboozled. I'm going in tomorrow to sign up the finance.

I was going to mark as 20,000/yr.

What do I do now?

Depends if you'd rather pay less monthly or have the 'chance' of more equity in the car at the end.

Personally i'd rather pay less monthly and put the difference in a savings account each month. That way you earn interest rather than pay interest on that money, plus if the car gets stolen or written off, or depreciates more than expected, or you VT early, you'll not lose the money with the car!

[Tengocity]

Originally Posted by teaston

Depends if you'd rather pay less monthly or have the 'chance' of more equity in the car at the end.

Personally i'd rather pay less monthly and put the difference in a savings account each month. That way you earn interest rather than pay interest on that money, plus if the car gets stolen or written off, or depreciates more than expected, or you VT early, you'll not lose the money with the car!

Having a smaller monthly payment with a higher MGFV just means you'll end up paying more interest overall, so your logic makes no sense! :

[teaston]

Originally Posted by Tengocity

Having a smaller monthly payment with a higher MGFV just means you'll end up paying more interest overall, so your logic makes no sense! :

How do you figure? Higher GFV means smaller deficit from the OTR price, so you're borrowing less!

[Tengocity]

Originally Posted by teaston

How do you figure? Higher GFV means smaller deficit from the OTR price, so you're borrowing less!

Sorry to be the one to break it to you but interest is applied to the entire amount borrowed, not just the difference between your GMFV and your purchase price (minus your deposit).

So lowballing your mileage just means more interest as you will owe more money over the duration of the agreement.

PCP strategy fall in to two camps for me:

1) Minimal deposit and get your miles bang on and then your monthly payment is interest plus depreciations, then start again in 3/4 years

2) Decent deposit and over state your mileage so that come the end of the agreement your car is still worth quite a bit more than your final payment.

I went for strategy 2 but have ended up doing more miles so far than planned! The consequence of that is that I won't have much equity in the car at 4 years, but I'm not too fussed as me and the wife see this as a car we will just keep till it dies. Next year it will likely become her DD, do a lot less miles, and hopefully still be great at 6+ years.

I'm afraid there is not magic way to make a new car not cost a lot of money

[73henny]

Originally Posted by teaston

How do you figure? Higher GFV means smaller deficit from the OTR price, so you're borrowing less!

No. You're paying interest on the whole value, GVF included.

edit - Tengo beat me to it.