At the end of the deal, you have three options: you can simply hand the car back and walk away, or, if the car is worth more than the MGFV , you can use the difference between the final payment and its true market value as a deposit for another new car.
The third option is to pay the MGFV and buy the car outright. This last choice might sound daft, but car makers are so keen to get consumers to take out PCP deals that they often offer ‘deposit contributions’ of around £1500 and lower interest rates than you’d get with other forms of finance. In fact, at the time of writing, some car makers were offering PCP deals with such low interest rates that they are by far the cheapest way of buying the car outright.
The main difference between these two forms of finance is that you have the option to buy the car at the end of a PCP agreement, but there’s no option to buy on a leasing deal.Yes, a growing number of car makers are also offering PCP deals on used models and online brokers offer PCP deals with competitive rates too.You simply need to add up the deposit, monthly payments and MGFV.
Ending a PCP deal early will usually involve paying a settlement fee, which will include the cost of the car that hasn’t been paid off, plus the MFGV and some interest, although less than would be payable if you completed the original payment term. Provided the value of the car is greater than this total, your finance will be settled and any surplus put towards a deposit on a new car. If its value is less than the settlement fee, you’ll need to make up the difference.Yes.