. “A PCP keeps consumers’ options open. When people buy the car, they don’t necessarily know if they will make the balloon payment to own the car outright, trade in the car for a new one, or just hand the keys back with nothing else to pay, but they know they will have those three choices,” he concludes.As the take up of PCPs has increased, so the popularity of HP has waned. It’s not entirely dead and buried, though.
The farther you drive, the less the car will be worth, so it’s important that the finance company has some sense of how far you drive each year in order to set the MGFV fairly and accurately.
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