But are you not paying a higher monthly cost based on having a lower gfv ?
Thought pcp was calculated over the depreciation based on the car ?
So higher the gfv the lower the monthly payments ?
Swings and roundabouts really, you can pay a higher deposit and lower your monthly payments. As Rob says, GFV is set by the finance company, in this case VW.
In many cases, the punter comes in with no or very little deposit, which means they are paying much more each month, but the GFV will still be the same, over the time.
What I did is put down a good desposit, I had capital from the sale of my Mk2 Cupra. I used half as a good deposit on my new SC FR. This brought my monthly payments down to an easy to manage rate, which has enabled me to keep the other half of the money I got from my Cupra and stash it away.
The lower monthly payments, also mean when i have a good month with lots of overtime, I can put extra into my savings pot and build up my savings. This allows me to do the same thing again in 3 years, except I should of saved enough for a larger deposit which means I'm in a better position to get a more expensive car (Cupra R
), without any large change in the monthly outgoings.
There are negatives to PCP, in that your taking a risk making any significant modifications, if that is what someone intended to do, then a PCP probably isn't the route to take.
But in my case, been there, done that and not really that bothered now. Rare that you can go that fast anywhere anyway these-days, maybe if I bought a speed boat the way the country is going.