How to save thousands on Tesla UK PCP finance

[Peteski]

When I signed up for PCP finance with Tesla (Blackhorse) in February, I was pleasantly surprised to find that the excess mileage charges have reduced to a flat unlimited 7p/mile, where it was previously 7p/mile for the first 5K excess miles and then 14p/mile for any additional excess above that. That's quite a reduction for anyone going well over their agreed PCP mileage.

So I was curious how this reduction in excess mileage charges affects the various PCP deals currently on offer i.e. 10K, 15K and 20K options. It turns out that now it is significantly cheaper to take out a 10K per annum PCP deal, regardless of your actual mileage and pay the excess mileage charges at the end, even if you are planning to drive 20K miles per annum. I worked out that the saving for me would be around £3K over both the 15K and 20K PCP options if I drove 20K miles per annum (on a 48 month PCP). Plus I would be paying lower monthly amounts throughout the whole term. A real win/win situation!

The only very slight advantage of the higher mileage PCPs is that the overall cost is fractionally lower if you decide to keep the car at the end. But literally only a few hundred pounds difference over 4 years and it wouldn't make much sense to own a Tesla on PCP and then buy it at the inflated guaranteed residuals. You really need to hand it back at the end to get the full benefit of the PCP deal.

So I thought I would bring this PCP finance anomaly to the attention of any potential UK buyers. Obviously this could change at any minute, so please check before signing up!

If you find this advice useful, please consider using my referral code below when ordering for free unlimited supercharging and a £375 credit. In return I will get a toy Tesla car for my 5 year old daughter!

Unlimited Tesla Supercharging and Extended Solar Warranty

 

[ajackuk]

So the excess miles you incur, do you pay them from the residual value at the end when you hand the car back?

 

[Peteski]

You pay the excess mileage charge when you hand the car back at the end of the PCP term. So it effectively reduces the guaranteed residual value. So for example if your agreed mileage was 10K per annum over a 4 year PCP and you handed the car back having done 20K miles per annum, you would have to pay 40,000 x 7p = £2,800. But that works out a lot cheaper than taking out a 20K per annum PCP as it currently stands.

If you decide to pay off the balloon and keep the car, then the excess mileage charge does not apply.

 

[ajackuk]

Thanks for the info / reply - all very very interesting!

If all goes to plan, will pull trigger and order a MX towards end of the year, and I do about 18,000 miles a year, so would have opted for the 20,000 miles PCP. This saves me about £100 a month and thus £4800 over the 4 years on PCP costs.

Just need to check the 7p per excess mile rules are still the same then

 

[Peteski]

Thanks for the info / reply - all very very interesting!

If all goes to plan, will pull trigger and order a MX towards end of the year, and I do about 18,000 miles a year, so would have opted for the 20,000 miles PCP. This saves me about £100 a month and thus £4800 over the 4 years on PCP costs.

Just need to check the 7p per excess mile rules are still the same then

Sounds perfect. It's a great saving taking the lower mileage PCP as the deal currently stands! Do please consider using my referral code linked in the first post too, unless you know someone personally who already has a Tesla. I'm trying to get the toy Tesla for my daughter!

 

[J1mbo]

Be careful - those numbers are only indicative. You should get a proper quote from Tesla, especially if you plan to buy through a business.

 

[WannabeOwner]

If all goes to plan, will pull trigger and order a MX towards end of the year,

There may be merit in placing an early order with long lead time (I think 9 months is the max, might be 6 months ...)

After I placed the order for mine there were 2 price increases and several enhancements, all of which were honoured in the original price.

Since then the deposit has gone up a fair bit though ... so dunno if it is still a worthwhile idea.

If you want to use my referral code you can have whatever stash comes with it - so long as you come and pick it up!

 

[Peteski]

Be careful - those numbers are only indicative. You should get a proper quote from Tesla, especially if you plan to buy through a business.

Absolutely, you need to double check when ordering and the figures could change at any time.

But I did check the figures on my actual Tesla quote and they appear not to have changed on the website since (except for a higher APR). The sales guy at our local Tesla showroom was as surprised as I was at the new flat 7 p/mile rate. I would have been pretty upset had I signed up for a 15k or 20k mile PCP to then find that out! So hence why I created this thread as a heads up for anyone ordering in the near future.

 

[Peteski]

There may be merit in placing an early order with long lead time (I think 9 months is the max, might be 6 months ...)

After I placed the order for mine there were 2 price increases and several enhancements, all of which were honoured in the original price.

Since then the deposit has gone up a fair bit though ... so dunno if it is still a worthwhile idea.

If you want to use my referral code you can have whatever stash comes with it - so long as you come and pick it up!

Great advice too! I ordered mine last September with a 6 month deferred delivery (that was the maximum allowed) to lock in the 1.5% APR PCP, car price and the £750 referral discount. Sure enough the APR went up the following month and is now at 3% and the £750 referral discount was removed (since replaced with a £375 credit). If pricing goes up after you order, they still honour the original price, but if pricing goes down they do reduce your order price - so a win/win after order placed!

 

[anonymouse]

FYI, I got my paperwork today and the 7p/mile is in fact 8.2p/mile because it excludes VAT. This additional VAT does not appear to be shown on the quotation at time of order.

 

[Maxthepom]

When I signed up for PCP finance with Tesla (Blackhorse) in February, I was pleasantly surprised to find that the excess mileage charges have reduced to a flat unlimited 7p/mile, where it was previously 7p/mile for the first 5K excess miles and then 14p/mile for any additional excess above that. That's quite a reduction for anyone going well over their agreed PCP mileage.

So I was curious how this reduction in excess mileage charges affects the various PCP deals currently on offer i.e. 10K, 15K and 20K options. It turns out that now it is significantly cheaper to take out a 10K per annum PCP deal, regardless of your actual mileage and pay the excess mileage charges at the end, even if you are planning to drive 20K miles per annum. I worked out that the saving for me would be around £3K over both the 15K and 20K PCP options if I drove 20K miles per annum (on a 48 month PCP). Plus I would be paying lower monthly amounts throughout the whole term. A real win/win situation!

The only very slight advantage of the higher mileage PCPs is that the overall cost is fractionally lower if you decide to keep the car at the end. But literally only a few hundred pounds difference over 4 years and it wouldn't make much sense to own a Tesla on PCP and then buy it at the inflated guaranteed residuals. You really need to hand it back at the end to get the full benefit of the PCP deal.

So I thought I would bring this PCP finance anomaly to the attention of any potential UK buyers. Obviously this could change at any minute, so please check before signing up!

If you find this advice useful, please consider using my referral code below when ordering for free unlimited supercharging and a £375 credit. In return I will get a toy Tesla car for my 5 year old daughter

Unlimited Tesla Supercharging and Extended Solar Warranty

I have have ordered and am due to collect my new Tesla tomorrow, I was convinced to take the 10k mileage option and pay the 8 ppm charge at term. I am a 30k /year driver so the difference is significant. I am very anxious about signing tomorrow as whilst the tax benefits are a no brainier surely with 100k miles they will not accept £6k excess charge and let me walk away? Seems bonkers
Can anyone reassure me?
I am likely to change the vehicle on 2/3 years mid pcp for another in any case so would they charge me then?

 

[DJP31]

At the end of the PCP you can walk away with the MGFV applying, subject to the excess mileage charge and fair wear and tear. So yes, be reassured about that.

Mid term however, it’s a different situation. Tesla will offer you a p/x value like anyone else and mileage charges etc don’t apply. Whether the p/x is enough to cover the o/s finance balance is anyone’s guess.

 

[GeorgeSymonds]

Just check there’s no escalation of the excess rate after say 15k excess miles. Tesla are also notorious for poor documentation

 

[Maxthepom]

It’s what I am concerned about really, trying to get the terms sent before collection is a nightmare. I have been told to go to black horse and ask. Who’s selling the car here?!
There must be a rate escalation? Surely they would not leave a loop hole like this?

Seems like it is a 4 year car if that’s the case. Excess mileage charge and deposit eaten

What to do?

 

[GeorgeSymonds]

Welcome to Tesla. They can be as infuriating as they can be brilliant. I’d just allow a bit of time to read the paperwork and not be rushed. Not much else you can do but there certainly have been cases where there was no escalation.

 

[J1mbo]

I have have ordered and am due to collect my new Tesla tomorrow, I was convinced to take the 10k mileage option and pay the 8 ppm charge at term. I am a 30k /year driver so the difference is significant. I am very anxious about signing tomorrow as whilst the tax benefits are a no brainier surely with 100k miles they will not accept £6k excess charge and let me walk away? Seems bonkers
Can anyone reassure me?
I am likely to change the vehicle on 2/3 years mid pcp for another in any case so would they charge me then?

Have you got a copy of the agreement stating the actual excess mileage fee?

 

[Maxthepom]

Have you got a copy of the agreement stating the actual excess mileage fee?

So today is collection day, I need to sign the final agreement which I have been asking for in my collection time.
The proposal is 10p (incl of vat) excess mileage. There must be a caveat giving a maximum mileage over term, has anyone else seen one?

 

[DJP31]

Not massively helpful as my PCP isn’t with Blackhorse but I don’t have a max mileage, and haven’t on any of the other PCP’s I’ve had over the years.

 

[S777]

it's not exactly foolproof due to the small number of data points and difference in spec, but a quick look at Tesla UK new and used inventory car prices shows that for 4 year old S85 cars, there is one high mileage (105k) example at ~£35k and a few examples at a more moderate mileage of between 47k and 59k that are all around the £40-£42k point. So the extra 50k miles on the car equates to about a £6k drop in value on average, which equates to about 12p a mile, so not a million miles off the sort of numbers being proposed on the PCP.

On that basis I don't see reason to believe there is some obvious mistake because the rate is wildly inappropriate. It's certainly not orders of magnitude out or anything.

That said, I'd still be checking the paperwork very carefully before signing if it was me

 

[Mark_T]

I am likely to change the vehicle on 2/3 years mid pcp for another in any case so would they charge me then?

Personally I'd be far more worried about this part than about any hidden wording regarding a limit on the excess miles at the quoted rate.

With no MGFV the number the settlement offer is unlikely to be very appealing...