PCP Agreement question

Mr_M_Cox

Hi all,

I have been looking at the options available to me for a new car and have been reading up on hire purchase, PCP, bank car loan etc and have a question about PCP.

As I understand it, at the end of the agreed term I have 3 options - give it back, pay to own it or trade in and start a new agreement.

If I take the latter and trade for a new agreeement what extra funds would I have to put in? Does my deposit for the original car roll over?

Any info would be great.

Thanks.

DrEskimo

No the deposit shouldnt be called a deposit. It should be called an upfront payment.

What you get at the end depends entirely on how much the dealer who is selling you the next car (can be the same manufacturer or a completely different one) values it, and what your final payment is.

Just don't negotiate this at the same time as the new car, as it will lead to conflating the valuation if your current car and the discount on the new car.

Of course you are only ever going to get rock bottom trade price for it, so you can maximise your return by buying it and then selling privately.

Of course you could also just pay off the finance and keep it.....

Nearlyold

Your original deposit does not roll over.
If the car is worth more than the GMFV at the end of the agreed term then that surplus can be used as a deposit, if the car is worth the same or less than the GMFV then you will have to find any deposit from your own monies.