Buying a van

[Solitaire Events Ltd]

When you say hand back, do you mean at the end of the agreement (i.e. 36 months) or part way through?

End of the agreement. I am basing this on what I was told as I have a PCP with my car currently. I have gone over on my first year by around 1000 miles, so did a little bit of research. I get charged 8p per mile over the agreed mileage, but this becomes irrelevant if I am using the car to finance the next one.

[Benny Smyth]

End of the agreement. I am basing this on what I was told as I have a PCP with my car currently. I have gone over on my first year by around 1000 miles, so did a little bit of research. I get charged 8p per mile over the agreed mileage, but this becomes irrelevant if I am using the car to finance the next one.

Would that policy on contract purchase also be applicable to contract hire?

[rth_discos]

End of the agreement. I am basing this on what I was told as I have a PCP with my car currently. I have gone over on my first year by around 1000 miles, so did a little bit of research. I get charged 8p per mile over the agreed mileage, but this becomes irrelevant if I am using the car to finance the next one.

I think that's because they use the value of the car to finance the 8p per mile that you have to fund.

However... PCP relies on the resale value being reasonable when returned. If they have over-estimated it, and it's not worth as much as it was planned to be, there may not be enough equity to fund the extra mileage AND the deposit for the next van.

In fact there's a bit of a fear that PCP contracts are about to go a bit wrong, as they may not even have enough equity left in the vehicle to fund the deposit of the next van - so you'd just hand it back and that's it. If this is the case, on a widespread scale, it's the end of the car industry and will send the world in to a massive recession - but that's a topic for another day!

But be aware, PCP isn't always what's it's sold as.