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- gavsta
- Member Since: 25 Jan 2022
- Location: Hertfordshire
- Posts: 143
PCP
For those who have used PCP to buy Land Rover products, what has been your experience, with regard to your final payment / Guaranteed future value (GFV)?
I've used PCP to purchase my last two cars (non JLR), whereas traditionally I bought outright. I was swayed by three arguments:
1 - Guaranteed future value (GFV)
2 - Optionality - Having a lump sum left in the bank
3 - The idea that the manufacturer had more skin in the game, i.e. if the car is a lemon, the manufacturer has a greater incentive to resolve.
In both cases, at the end of the term, the cars have had significantly higher values than the GFV. This has prompted me to rethink using PCP again.
How has your GFV compared to the real world value of your cars at the end of PCP agreements? Have you, too, been paying interest needlessly on a clever financial instrument, as your Land Rover has been worth far more than the GFV? Or, have you been thankful for the PCP, as the value of your Land Rover falls below the GFV?
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- B50int
- Member Since: 02 Sep 2018
- Location: Yorkshire
- Posts: 155
Last one I had on PCP was worth way more the the GFV so I paid off the lump sum and then sold it. Even if you have to borrow for a month to make the balloon payment you pay off that loan with the sale value and keep some cash in your pocket. I don’t think I would ever just ‘give it back at the end’ unless the value had dropped below GFV.
PCP isn’t for everyone but it certainly gave me more options. Personally I take the PCP to get the finance deposit contributions, then during the first month pay back all the capital up to the GFV value. Then I am only paying interest on the GFV value for the duration of the PCP.
Note that the finance isn’t provided by JLR, it’s a black horse product just marketed as JLR. Lots of manufacturers loans are rebranded black horse products. Having a finance company on board if you have to reject does seem to be of assistance based on others feedback on the forum. The other big key to support when things go bad is a full dealer service history. Most people who have had serious defects have had an easier path if it’s dealer serviced- me included.
MY23 (2022) D300 SE R-Dynamic Eiger Grey, Tow Pack, Matrix Headlights and a few other options
Gone: 2018 HSE 3.0 tdv6 Santorini black
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- Darras
- Member Since: 16 May 2020
- Location: Newcastle
- Posts: 749
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Yep, I’ve had it to get the finance incentives, but I don’t even wait a day until I repay it. Last time. I got charged less than £10.
As for assistance from the finance company if you reject the car, it all depends if they agree with you. I know plenty who had problems and ended up fighting the finance company before proceeding. At least if you own it outright, you control it.
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