What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
What happens at the end of a PCP if the car is worth less than the GMV?
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 some EV it is a concern.
Asked on 28 July 2023 by Pauly58
Answered by
David Ross
The Guaranteed Future Value or Guaranteed Minimum Value is set at the start of the contract and is the amount you would have to pay if you wanted to purchase the vehicle at the end of the term. This figure remains the same regardless of whether or not the vehicle is actually worth more or less than this amount.
If you choose to hand back the vehicle at the end of the term you will have nothing more to pay assuming you have met all the criteria for mileage and condition. If you trade it in for a new car you will need to provide a deposit, and if you choose to buy it you will have to pay the GFV rather than the actual market value.
If you choose to hand back the vehicle at the end of the term you will have nothing more to pay assuming you have met all the criteria for mileage and condition. If you trade it in for a new car you will need to provide a deposit, and if you choose to buy it you will have to pay the GFV rather than the actual market value.
Similar questions
What is the position of a PCP agreement on the death of the purchaser? A relative recently passed unexpectedly and unfortunately BMW Finance have quoted an extortionate early settlement fee, IMO. The PCP...
Can I return my car due to the coronavirus outbreak? I can't afford the car now. I have about 9 months left till the midway point of the finance agreement.
.jpg)
