PCP Advice

Hamiltonc

Currently nearly one year into a PCP.  Have often done this route but in need of some guidance 

If were to renew or change manufacturer, current equity due to rebate is around £5K.  For renewing there is a further £4K deposit - making PCM payments a bit more than current but okay 

Switching manufacturers, similar PCM payments here or there 

Unsure whether to consider renewing already or waiting, bearing in mind in 3 more years, won't be able to fund the final optional payment and as time goes on the rebate for the finance settlement will decrease 

Advice welcome 

DrEskimo

Renewing or changing to what?

The equity means nothing without the context of the car prices involved and the finance deal made and the ones you are looking to potentially make. 

Why are you suggesting the equity will decrease over the term?

Hamiltonc

DrEskimo said:

Renewing or changing to what?

The equity means nothing without the context of the car prices involved and the finance deal made and the ones you are looking to potentially make. 

Why are you suggesting the equity will decrease over the term?

Renewing current/changing manufacturers 

Because the rebate on finance settlement will decrease over time and so will the car value which on turn reduces equity 

On-the-coast

So keep it until term finishes and hand it back…
then start again. Or maybe look at PCH.  

Handing back mid-term is usually most expensive option overall.