Finance mileage limitation problem
Discussion
Hi chaps,
I have a problem which is, I have exceeded my mileage on my car finance. The car is financed to do 18k miles over 3 years (thank you dad). I know when I got the car I said I do a min of 12k miles a year. In the terms and conditions it says -
"Rate for each excess mile is: 2.39 pence per mile inc VAT"
"If the total mileage exceeds the agreed basic mileage by 30%, the rate for each excess mile thereafter will be twice the above rate" (4.78 per mile)
Now my car has just ticked over 38,000 miles... Ouch I know!!
The car is going back in a few days on a termination of the contract, so I am just wondering how much this will set me back?
Thank you,
Vincenzo
I have a problem which is, I have exceeded my mileage on my car finance. The car is financed to do 18k miles over 3 years (thank you dad). I know when I got the car I said I do a min of 12k miles a year. In the terms and conditions it says -
"Rate for each excess mile is: 2.39 pence per mile inc VAT"
"If the total mileage exceeds the agreed basic mileage by 30%, the rate for each excess mile thereafter will be twice the above rate" (4.78 per mile)
Now my car has just ticked over 38,000 miles... Ouch I know!!
The car is going back in a few days on a termination of the contract, so I am just wondering how much this will set me back?
Thank you,
Vincenzo
Apparently some people have allegedly heard of a service that might or might not be called 'mileage correction'.
Apparently some people have allegedly paid a sum of cash to such an operation in return for such a service.
And in return these people now had a car with xx,xxx miles less on the clock when returning the car, thus avoiding any penalty charges.
That's what I heard, anyway.
Such vendors often advertise in the 'trade services' section of Auto Trader.
And no, it wasn't my car. But I know of a few people who've done it. Like on a Ford van that did 130,000 in three years when the contract was limited to 12,000 per year...
Apparently some people have allegedly paid a sum of cash to such an operation in return for such a service.
And in return these people now had a car with xx,xxx miles less on the clock when returning the car, thus avoiding any penalty charges.
That's what I heard, anyway.
Such vendors often advertise in the 'trade services' section of Auto Trader.
And no, it wasn't my car. But I know of a few people who've done it. Like on a Ford van that did 130,000 in three years when the contract was limited to 12,000 per year...
GarrettMacD said:
Apparently some people have allegedly heard of a service that might or might not be called 'mileage correction'.
Apparently some people have allegedly paid a sum of cash to such an operation in return for such a service.
And in return these people now had a car with xx,xxx miles less on the clock when returning the car, thus avoiding any penalty charges.
That's what I heard, anyway.
Such vendors often advertise in the 'trade services' section of Auto Trader.
And no, it wasn't my car. But I know of a few people who've done it. Like on a Ford van that did 130,000 in three years when the contract was limited to 12,000 per year...
Am I wrong in thinking that you are saying people have "clocked" their car? If that is the case not that I am even interested, but how is that possible on a modern car? Surely the odometer is encripted to stop this from happening? Apparently some people have allegedly paid a sum of cash to such an operation in return for such a service.
And in return these people now had a car with xx,xxx miles less on the clock when returning the car, thus avoiding any penalty charges.
That's what I heard, anyway.
Such vendors often advertise in the 'trade services' section of Auto Trader.
And no, it wasn't my car. But I know of a few people who've done it. Like on a Ford van that did 130,000 in three years when the contract was limited to 12,000 per year...
B16JUS said:
presume the car is 3 years old then ?
quick calculation
18,000 to 23,400 ( 30% )
2.39ppm x 5400 = £129.06
23,400 to 38,000
4.78ppm x 14600 = £697.88
so total is £808.94 plus any admin fees etc
J
Thank you very much B16. I got the same answer, I just wanted to check. quick calculation
18,000 to 23,400 ( 30% )
2.39ppm x 5400 = £129.06
23,400 to 38,000
4.78ppm x 14600 = £697.88
so total is £808.94 plus any admin fees etc
J
Cheers gents
Vincenzo2010 said:
Surely the odometer is encripted to stop this from happening?
You WOULD think that these digital Odo's made life more difficult, wouldn't you?!?Apparently not. Now instead of attaching a drill to the back of the odo, you just plug a laptop in, run a program, and type in the new mileage!
This might be an odd question to ask, but why do you care?
Assuming the car is on a PCP and not a lease/contract hire, the final payment/MGFV is an optional payment.
What could you get for the car if you sold it on, or would it be worth your while borrowing the amount outstanding and using that to pay off the finance?
If the car is worth more than the final payment, you can either sell the car to the trade for that amount and have them settle the finance, giving the balance to you, or keep/sell the car privately having refinanced with a bank loan.
So if the final payment was £4k, and you owe an additional £800 for the extra mileage, that's equivalent to the finance company buying the car back for £3,200. If a trade buyer would give you more than that, sell to them and fund the shortfall against the £4k owing yourself - or just buy the car with a new loan and keep/sell it.
Assuming the car is on a PCP and not a lease/contract hire, the final payment/MGFV is an optional payment.
What could you get for the car if you sold it on, or would it be worth your while borrowing the amount outstanding and using that to pay off the finance?
If the car is worth more than the final payment, you can either sell the car to the trade for that amount and have them settle the finance, giving the balance to you, or keep/sell the car privately having refinanced with a bank loan.
So if the final payment was £4k, and you owe an additional £800 for the extra mileage, that's equivalent to the finance company buying the car back for £3,200. If a trade buyer would give you more than that, sell to them and fund the shortfall against the £4k owing yourself - or just buy the car with a new loan and keep/sell it.
havoc said:
Vincenzo2010 said:
Surely the odometer is encripted to stop this from happening?
You WOULD think that these digital Odo's made life more difficult, wouldn't you?!?Apparently not. Now instead of attaching a drill to the back of the odo, you just plug a laptop in, run a program, and type in the new mileage!
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