What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
The guaranteed price of my car (when the PCP ends) is £5500. If it's actually valued at less than that, will they buy the car back from me for less?
I have been on PCP for two years of a four-year deal. The guaranteed price after four years is £5500. If I keep the car for four years, and the car is actually valued at less than the £5500, will they buy the car back from me at £5500? I put down £4000 at the start of the deal.
Asked on 2 March 2020 by Alex G
Answered by
Andrew Brady
No. At the end of your PCP, you have a number of options. You can either hand it back and walk away, buy the car outright (paying the £5500 balloon payment), or trade it in for another model. You don’t have to worry about the car being worth less than the guaranteed future value - if that happens, the finance company takes the hit.
Similar questions
Could you please clarify what would happen at the end of a deal if the car is worth less than the GMV, who takes the loss & is the deposit still safe, With the large depreciation figures I have seen on...
What normally happens in the event of the incapacity or death of someone who has taken out a PCP or PCH agreement? Can it be transferred to a spouse? Also, is a deceased person's estate liable for any...
What's the difference between a PCP and a PCH finance contract?
.jpg)
