My understanding was that if your car was worth more than the gfv, on return, the equity/difference would be returned, or could you use it for another deal? Good morning, Nicola. Yes, you can change the car before the end of your current agreement. You have to settle the agreement in due course and then start a new agreement on what you want to buy next. It is not uncommon for people to want to switch to a cheaper (or cheaper) car. Yes, you`re right. If you settle your advance financing contract, you save interest on the remaining term of the loan. However, most financial companies charge you a fee to pay you at an early stage, so you take control of your interest savings. If you overpay, they can charge you a fee so they can check as well as possible. If you plan to change the car at an early stage, you can either overpay now to reduce the number of bills in a few months, or pay everything now and have more bills. It`s not going to make a huge difference – either you pay more now or later. Hey, Charlie. Yes, you`re absolutely right.
The term “deposit” is a wrong word; Rather, it is a down payment. You can reduce your deposit and pay a higher monthly amount (more than 3 years, reduce your deposit by 1000 euros, increase your monthly deposit by about 30 euros), but look at any money you pay the trader/financial company to be gone. If you`re lucky, you may have a small amount of equity at the end of the agreement, but it`s unlikely to be as much as $2,000 (i.e. – you probably won`t get $13,000 for that at the end of three years). Hey, Noel. We recently addressed this issue on our forum (click here), so look at this. In short, yes, you should be able to do that. You can pay the financing at any time during the agreement, but the guaranteed value only applies at the end of the term. When it comes to the end of your agreement, you have three options to choose from: Since I have a VW!, it seems I have to “downgrade” the cars and get a more expensive deal. If you implement a PCP agreement, the dealer will give you a “guaranteed minimum value for the future” for the car. The GMFV is the minimum amount that the car will be worth at the end of the agreement. So if the car loses value unexpectedly, you will be protected.
And if the car at the end of the PCP is worth more than the GMFV, you can use the equity as a deposit in your next deal. Hello Stuart, very clear and concise article thank you. My last funded car was a 2006 Vantage V8 that I was able to pay 33% to an HP deal. After selling the vehicle, I am now interested in a 2007 R8, but trying to hold on to the monthly budget the same or less than my HP payment was for the Aston. I`m very likely to change cars in 3 years and PCP just rings for me. I`ve looked r8s up to about 40k, but some are cat D repairs from dealers (so lower prices). Is it true that most financial companies will not finance a car that is more than 3 years old? Hello I recently have a new job that gives me a company car, but I also have a car on a financing contract with Renault I need to cancel this because I don`t need this and it`s a waste of money every month. I went to Renault to try and cancel, but they didn`t seem at all interested you have any advice. Good morning, Derek. Interest can be calculated differently depending on the type of financing agreement (for example. B HP vs PCP). It is usually best to talk to the financial company to get a breakdown of its offer.
Good morning, Maria. Yes, the distributor should explain everything in full when selling you a financing contract, but you must also assume responsibility for reading a contract before signing it. Some basic math would show that after 48 months of payments and your deposit, you are still far from paying for the whole car (plus interest).