PCP finance - help me understand please....

[firsttimemummy11]

We bought a Renault Captur last year on PCP - when we bought the car it was just to be a run around however since then my partner got a new job where he uses the car daily to get to and from work....the mileage in our contract is 8000pa, however we are going to massively exceed that in the years to come (it’s a a 4 year contract).... when I spoke to Renault they said they couldn’t amend the contract to increase the annual mileage... can someone explain our other options or are we absolutely screwed and going to have to pay a massive amount at the end of the contract? Our intentions are to get another new car after this contract....

In your contract, there will be a clause relating the excessive mileage. They are usually pretty dear, and go up depending on how much you exceed it.

If you're going to massively exceed it, it might be worth handing the car back early and taking out a bigger contract. 8k is really small! You'd need to work our how much you think you'll exceed it by, and compare that to any charges/loss in value for handing it back.

This is why it is better to buy a car on a credit card(s) and do a balance transfer so you can pay it off each month, interest free. I think you'd have to cough up the extra amount and do not get another car on PCP / finance with the car company again!

Sorry @Knittingformittens - that is not great advice. It is riddled with issues.

Every time you transfer you pay a %, having significant CC debt reduces the amount you can obtain on a mortgage significantly, and generally people just pay off the minimum as they have no 'need' to pay more. Credit Cards if not used properly and statement balance paid each month can be a slippery slope.

PCP - Can be of use to some people, no MOT's, generally breakdown cover included, new car so reliability is increased. Of course, ideally you would own the car outright. As Buffet once said, buy assets that appreciate, lease those that depreciate.