PCP Mileage

=rizla=

Cornucopia wrote: »

In reality, the GMFV is set at a level where it is never intended to "pay out",

Not always, we're coming to the end of a pcp, and if you go on wbac valuation then have £2.5k 'equity' in the car, the dealer offered us £3.5k, although that was against a new car. I remember when we did the deal 3 years ago the dealer said they(Toyota) like you to have some equity at the end so its easier to get you into a new car, I can see their logic but imho its flawed.

Cornucopia

Yes - that's what I meant.

The GMFV is a low, back-stop kind of price, with the intention that you'll have equity available for a deposit on another new car at the end.

But then you're paying to get to that lower price through higher monthly instalments.

=rizla=

Ahhh ok, I think some of the dealers are now offering a 'closer' figure to the actual value nowadays, obviously lowering the monthly payments, but making the car seem more affordable, helping the sale.