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Are PCP deals what they claim?
Almost three years ago my daughter took out a PCP deal on a Volkswagen Move Up with the confident expectation espoused by the dealer that there would be equity at the finish to put down on another car. Inquiries at the dealer, and elsewhere indicate that this will not be the case, so the car will be handed back. She needs to have another car and is considering options. Do such deals usually produce a 'surplus'at completion?
Asked on 24 October 2015 by merco
Answered by
Honest John
Manfacturers handle PCPs two ways. Some of them (Hyundai, Kia, Honda) undervalue the car at the end of the contract, leaving you with genuine equity in the car with which to fund the deposit on the next PCP. Others, as you have discovered, leave you with no equity, but to keep hold of you offer you a 'deposit contribution' on the next PCP.
Dear Honest John,
Please help me choose my next car. I would like it to have:
Please help me choose my next car. I would like it to have:
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