There are fees that can accumulate and become due at the end of the transaction you must be aware of, they are both avoidable – these expenses are divided into two categories.
Over stepping mileage.
When your PCP loan agreement starts, you’ll be asked how far you plan to drive the vehicle each year in mileage.
The dealer will use this information to calculate as accurately as possible what the car’s value will be at the end of the contract, allowing them to set your monthly payments and the balloon payment. A car that has been driven sparingly is worth significantly more than one that has logged a lot of miles.
Damage beyond wear and tear.
It’s critical to be precise. If you exceed the agreed-upon mileage restriction, the credit firm will charge you between 7p and 10p for each mile you go over. Keep an eye out for this because an additional 2,000 miles will cost you roughly £200 at the end of your PCP term.
The lenders, like any other car rental service, will inspect your returned vehicle for signs of damage. Despite the fact that you are allowed a certain amount of wear and tear from use, the vehicle must be in resalable condition.
This means you’ll have to cover the expense of any visible damage or dents in the car that may reduce its worth.
All lending is subject to status checks and an affordability assessment.