The purpose of a PCP is to guarantee value at the end of the agreement (future guaranteed value – GFV). This means that the financial company loses money if the market value of the car is lower than that of the GFV. That`s why they want to make sure they`re not too high for the GFV. It is therefore possible that at the end of the agreement, the car may be worth more than the GFV. Hey, Brian. I`m sure they can come up with a deal, but it`s probably an expensive exit from the Audi, because you`ll probably have a significant amount of negative equity to determine before you worry about a new deal and another deposit. If you have a personal lease (PCH) or a car rental agreement, it is much more difficult to get out of the contract before the end. The credit contract you signed before you drive should indicate the total price and what you must pay if you return the car. Hi, Stuart, great article. I have a somewhat complicated situation, but I would appreciate your opinion. I am a British diplomat who will return to Britain after a post abroad. I`m looking for a small SUV (Qashqai or CX-5) can buy on PCP. I`ve never funded PCP, but I can understand the benefits, especially if you change your car in three years.
Hello Stuart, I have a credit Agility PCP deal that has 4 payments over the 36 months, so I did my shopping for replacement. I found a car that I like, but I should deliver in the next 6 weeks and the dealer does not want to take the Mercedes as a trade-in and advised that I voluntarily stop financing, since I am well above the 50% mark. Let`s take the simple example above, based on the US$30,000 loan and a $15,000 GFV after three years. If you wanted to try to get out of your contract after a year, you had to pay $25,000 (actually, a little less, because you would save a few hundred pounds of interest by moving in early). If you want to move in after two years, you would be owed $20,000 (again, that would be a little less). Whatever the financial company will reduce the payment on the basis of lower annual miles (they do it for more miles? – wrong logic, I think). As for the sale ia think I`ll lose too much? For example, if you have already repaid $10,000 and the total amount of funding is $25,000, you must pay an additional $5,000 to reach 50%. However, the car dealership has just contacted me (18 months after the start of the contract) to offer me the opportunity to exchange the car at an early stage, and offered me the same model of 64 plate for 160 dollars per month, the same conditions as those mentioned above. The RPA is 9%. I think it`s a good deal, especially considering the fact that there is damage to the car (chip in the windshield and thinned alloys). However, many people have been falsely sold payment protection insurance or do not realize that a financial company has added it to an agreement they have entered into.
The CAP insurance payment should be a separate cheque for everything she recovers from her auto insurance after the financing is counted. Hello, I have a 4 year contract on an Audi A6. I`m two years old and I want a change. I contacted the merchant who said I had about 4k negative equity. However, the price they would give me to fit the car seems to be lower than I thought it would be worth comparing my car to others in private sale and Parkers Guide. I think they are cautious or want me to invest more. Given the competitive car sales market, I`m thinking of talking to a BMW dealer to see if they would give me more for my car and a good discount? Can another reseller of another brand pay for my PCP contract? Do they want or want to be ready to do so? Thank you If the car is cancelled or stolen, you must settle the agreement.