Q&A Special: PCP Finance - Are mileage penalties severe?

Q: Are the penalties for going over the agreed mileage limits severe?

A: Your monthly payments and the MGFV are set on the understanding that you won't exceed a certain annual mileage - say, 12,000 miles per year. Be sure this is set to a realistic level before you sign any PCP agreement. If you go over the agreed limit then you can expect to pay extra. Even if the penalty is just 5p per mile, that's enough for a bill of £1000 if you cover 20,000 extra miles.

You may also be charged if you don't keep the car in good condition. Remember, even if you hand the car back, the supplier will still have to sell it on.