6. Alternatively, you can use the value of the car after paying the GVF as a deposit on a new PCP. The financial company guarantees the minimum value of the vehicle at the time of the expiry of the contract (subject to mileage and condition). This GMFV is based on available market information on vehicle valuations, expected miles over the duration of the financing agreement and the duration of the agreement itself. With PCP, monthly payments cover the value that the car must lose during the contract - and if you want to own the car at the end, make the optional final payment - which in some cases is half the original price of the car. As a result, however, used cars start from less than $100 a month with PCP, with also some relatively young used cars available for less than $100 a month. You can terminate your contract prematurely by requesting a billing figure from the financial company. Once this amount is paid, you no longer owe anything to the lender - the car is yours. So if you have the money, you can just pay that amount and you will own the car. You can still settle all or part of a PCP agreement, but you need to check the terms of the agreement, as each financial company has its own procedures for that. Before you sign up for a PCP agreement, you must go through a credit assessment that consists of two factors. First of all, the affordability of PCP payments over the life of the contract is based on your finances - think about how difficult it is for you to maintain your repayments. The second is credit risk, which is the probability that you will not restock your PCP credit from the loan company.
Just add the down payment, monthly payments and FGMV. Most automotive company sites have financial calculators that show you all these figures for each model and sorting level and have the deposit and duration of the agreement changed and see how it affects monthly payments and total cost. You might even rate the car higher than the company that holds the financing, which gives you a bigger deposit for your next vehicle, which reduces monthly payments for your new car.