Hi,
Can someone explain how PCP works? Basically I'm trying to weigh out whether it's better doing this than say get a load and buy a car outright - so I have some questions.
I currently do 30k a year which means diesel is best option but within the next year or so I hope my job situation changes, therefore may do less miles.
On a PCP deal I've been told mileage doesn't really matter unless I'm giving the car back at the end of term, in which I have to pay a penalty on mileage.
What does the GFV mean?
Say I get a Car and it's £25k new.
£5k deposit laid and I pay £3000 a year for 2 years based on 10k miles.
After 2 years I have paid £11k so I'd owe £14k
But after 2 years I've actually done 50k miles and the car is worth say £10k
What happens in this situation?
I hand car back and have to pay mileage excess? Or I still have to pay off the £14k
Of the other way round if I do much less miles and the car is worth £15k but I owe £14k - do I basically pocket the £1k?
How does GFV come into play? I've not given it as I don't realistically know what it is so I'm trying to understand different scenarios
Thanns
Can someone explain how PCP works? Basically I'm trying to weigh out whether it's better doing this than say get a load and buy a car outright - so I have some questions.
I currently do 30k a year which means diesel is best option but within the next year or so I hope my job situation changes, therefore may do less miles.
On a PCP deal I've been told mileage doesn't really matter unless I'm giving the car back at the end of term, in which I have to pay a penalty on mileage.
What does the GFV mean?
Say I get a Car and it's £25k new.
£5k deposit laid and I pay £3000 a year for 2 years based on 10k miles.
After 2 years I have paid £11k so I'd owe £14k
But after 2 years I've actually done 50k miles and the car is worth say £10k
What happens in this situation?
I hand car back and have to pay mileage excess? Or I still have to pay off the £14k
Of the other way round if I do much less miles and the car is worth £15k but I owe £14k - do I basically pocket the £1k?
How does GFV come into play? I've not given it as I don't realistically know what it is so I'm trying to understand different scenarios
Thanns