PCP & Garanteed Future Value

the_singing_cyclist

Ive been looking for a car on PCP since October! Finally decided on the Chevrolet Orlando - Affordable monthly payments compared to others and actually nicer and bit different to the standard MPV's.

I find the one a want, great deal and lo and behold the PCP agreement is 'Not accepted' because Chevrolet are pulling out of the UK market in 2015 and the guaranteed future value is basically £0 so no one will look at me to part ex/upgrade unless I just wanted to hand the car back to the dealer.
What can I do, I want this car and I want it on PCP so I can trade for a newer one in 3 years time. Do I just avoid Chevrolet altogether?

Many thanks

chib

Have you considered leasing the car?

Ultrasonic

If you are happy with the monthly payments then the virtually zero (what is it actually?) GFV isn't really an issue is it? The car will be worth more than nothing so you will benefit. If you 'trade in' a car you've had on PCP the only value to you is the amount the true value EXCEEDS the GFV, NOT what the GFV is.

The problem with a lower GFV is that it makes the monthly payments higher.

Ultrasonic

Actually, missed the part about the deal being 'not accepted'. I dont see how that had anything to do with trading the car in? I suspect it might be that the very low GFV would make the monthly payments much larger than the deal you'd tried to take up.

Ultrasonic

As a separate thought, you don't need to buy a car on PCP to be able to trade it in in three years, you could do the same if you purchase the car outright with some form of loan or even cash. The issue may be you can't afford to though I guess.

I do though get confused about the idea of taking a PCP deal to have something to trade in. The whole premise of PCP is that the monthly payments cover the depreciation only, so you don't end up owning the car.

jimjames

I'd be very wary buying a brand new car that you know the dealer is exiting the market. The depreciation is likely to be savage and parts/servicing etc in future could be very difficult to arrange as well as resolving any warranty issues that may arise.

If it was second hand and the depreciation was already factored in then maybe worth a look but if the PCP already admits there is little value left in 3 years then it sounds like you'd be throwing your money away.

motorguy

the_singing_cyclist wrote: »

Ive been looking for a car on PCP since October!

Finally decided on the Chevrolet Orlando

I seriously recommend you stop taking PCP and look for a car when you are of a clear mind.

Taking drugs and looking to make a major purchase are a bad mix.

Hintza

jimjames wrote: »

I'd be very wary buying a brand new car that you know the dealer is exiting the market.

I would be using this to try for a huge discount if I liked the car. The OP could get a steal if they play their cards right.

Ronneh

People still drive Rovers without any problems! I know they're "back" now but still the same sort of thing. Chib mentioned leasing, and I'd have to agree - you can get an Orlando for £180 a month with a lease. What price have you been quoted on PCP? PCP is generally a lease with a balloon at the end