PCP Voluntary Termination; Can they charge excess Mileage? simonhatfield


I currently have a 57 plate BMW 3 Series through a PCP 'BMW Select' contract. I am struggling with the monthly payments, and with the agreement ending in September I would be left in a massive negative equity position.

When I got the car 4 years ago, I wasn't doing too many miles and agreed to I think, 8000 per annum, I currently have 63 000 on the clock - significantly over what I was contracted to do.

I therefore asked BMW to Voluntary Terminate my agreement and they emailed paperwork to me this morning. The agreement states; 'As long as you have paid 50% of the total amount owing you will have nothing left to pay'. I expected any payments for damage etc but was under the impression excess mileage didn't play a part?

Can anybody shed any light on this as the only info I can find relates to HP agreements which have no mileage restrictions from the outset?


Have a look at the terms and conditions of the agreement you signed. It would be unusual for a PCP contract not to have an excess mileage clause in it, though.

It looks like you have only a few months left on a 5 year term so the amount you have paid already should be enough to cover the 50% payment requirement and the excess mileage charge.

Call them to check before you return the car though.

If I run to the end of the term in September then there would be excess mileage charges to pay (I am not sure of my options).

The voluntary termination section of my agreement is totally separate and just covers the CCA wording, so I assumed the excess mileage charges wouldn't be applicable.

I guess one angle I could take is that I have paid around 60-70% of the amount, as opposed to 50% and therefore that should cover any of the excess mileage.

There is a lot of documentation online covering HP agreements but nothing covering PCP - being considerable over I could be liable for £2,100 of excess mileage charges :-(

Silly of me to take the agreement in the first place, I was going to fund it through a straight Tesco Loan, which I should have as the car in 12 months would have been mine - but the Salesman did his job, lesson learnt I just don't know how best to proceed!!!


I guess one angle I could take is that I have paid around 60-70% of the amount, as opposed to 50% and therefore that should cover any of the excess mileage.

Originally posted by simonhatfield

Which is what I said.

It's not as if you get anything back so it doesn't really matter.

When you take these agreements you agree to x miles, now as you have done way over even if early term you will be getting a bill for the milleage as the car will be worth a lot less

8000 miles is a very low mileage to agree to, unless you're retired and just use the car to collect your pension ! I know that the lower the mileage the lower the payments though, which is what tempts people to agree to the lower figure.

I'm sure the excess mileage will still apply, even when handing back the car, it does on mine.

Thinking it through, if the excess mileage charge was waived on early return, everyone would just hand the car back a week before the end of the agreement having run up Starship Enterprise distances.

Have you investigated the option of getting new finance to repay the (presumed) balloon payment - thus avoiding the excess mileage charge? Then sell the car privately and repay what is owed.

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