PCP (Personal Contract Purchase/Personal Contract Plan) being mis-sold is nothing new unfortunately, and one of the factors which can determine whether a PCP has been incorrectly arranged with customers concerns mileage. Indeed, when you analyse the situation, it becomes clear that confusion or even ignorance of the mileage terms can result in those who have already been mis-sold PCP ending up having to pay out even more. Here, we cover several ways that this can happen.
Now, when we say “mileage”, we mean excess mileage; as part of your plan, you may agree to only use up a certain mileage, whether that be on a monthly or an annual basis, or even for the plan as a whole. This is crucial because, when you first agree to the plan, you may have a job that only requires you to drive a short distance, but what if, a year or so in, you end up working out of town, which requires more driving and, consequently, more miles will appear on your digital odometer? Of course, there are ways to tweak a deal to suit your new circumstances, but if you’re already paying out more than you should be, then you may find that it’s easier to ignore the hassle and take a chance … which ultimately costs you even more in the long-run, should a post-plan analysis determine that you have greatly exceeded the planned mileage.
But what if you have inadvertently signed up to a plan whereby your mileage is insufficient to begin with? In order to keep costs down, cut corners etc., the dealer may convince you that limiting your mileage to a moderate level, you will end up making a big saving. The only problem is, it could end up being an anchor on your driving. So, for instance, you may be able to cover enough miles to get you through the working week, but it could be that your remaining mileage for weekend drives with the family are extremely limited to the point where you feel that your hands are tied. The short-term boost of saving money has the long-term cost of reducing potential driving activity, and that doesn’t include those who sell this line to you, only for it to still work out that you’re paying more than you should be.
And then there’s the cost per mile, in the event that you exceed your agreement. Some are fairly low; certain plans will only need you to pay around 3p for every extra mile you drive. Conversely, some are rather high, as high as 72p in numerous cases. Now, factor in that you probably won’t be driving only one mile over your agreement; it could be a dozen or so a month, or a few dozen a year, or even hundreds over the course of a year or two. Now multiple the high-level amount by the number of excess miles, and you will find that the penalties lie in the mid-hundreds, possibly even higher. Of course, one could argue that you know what you’re signing up to in advance, but if the terms of the plan are simply not fair to your circumstances, and the overall price means that you are pressured to agree to a low mileage in order to get your car, it only creates unnecessary headaches, and further profiles the malpractice of the dealer.
What all this means is that you should be extremely careful when singing up to a PCP plan, especially when it comes to determining what mileage you’re likely to cover, and how much you’re willing to pay both for your agreed mileage and any excess. What sounds like a reasonable agreement on paper might end up being very unfair in reality so you really have to take your time to ensure that your mileage terms are appropriate and feasible, otherwise it could create both short-term frustration and long-term expenses for you.
Learn more about PCP mis-selling for excess mileage by visiting our news page today ==>> www.pcpmissold.co.uk/news