PCP Mileage Limits Explained — What Happens If You Go Over?
💡 Key Takeaway
Going over your PCP mileage limit could cost you hundreds. Here's what happens, what it costs, and how to avoid a nasty bill at the end of your deal.
PCP Mileage Limits — What You Need to Know 🚗
When you take out a PCP, the lender sets an agreed annual mileage. This figure directly affects your car's GMFV — and therefore your monthly payment.
Go over your agreed limit and you'll face excess mileage charges at handover.
What Are Excess Mileage Charges?
A per-mile penalty applied when you return the car having exceeded your agreed total. Typically 3p to 20p per mile depending on vehicle and lender.
On a 3-year PCP, 10,000 miles over at 10p per mile = a £1,000 bill at the end. 💰
How to Avoid Going Over
- Be honest about your mileage upfront — set a realistic limit, not a low one to get cheaper payments
- Review mid-term — if you're consistently over, contact your lender to adjust. Cheaper to fix now than pay excess charges later
- Check quarterly — divide total mileage by months elapsed to check you're on track
What If You've Already Gone Over?
- Pay the excess charges and hand the car back
- Buy the car at the balloon payment — the mileage is then yours to absorb in resale
- Part-exchange early — if positive equity exists, you may exit before charges crystallise
Mileage and Negative Equity ⚠️
High mileage accelerates depreciation. If you've significantly exceeded your limit, your car may be worth less than the GMFV — check the numbers before deciding whether to buy or hand back.
Talk to WFYA About Your PCP Options
We Finance Your Asset, based in Reading, Berkshire, helps buyers across the UK manage and exit PCP deals sensibly. 👉 Get in touch at wefinanceyourasset.co.uk.