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Is it smart to exit a PCP a year early to start another PCP?

Is it a good strategy to exit a 42-month PCP early (say a year early) so there is still good equity in the car, to then start another PCP, as opposed to keeping the car for the full term and then taking out a new PCP?

Asked on 3 August 2017 by pro-engineer

Answered by Honest John
You are committed to a 42 month PCP, so if you exit 12 months early you would have to pay the final 12 months of payments in addition to the GFV and would only come out on top if the two payments collectively were less than the current market value of the car.
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