Personal Contract Purchase (PCP)

[nick crisp]

It's funny really, cos if I got a bank loan, there's no way I'd be buying brand new - nearly new second-hand to avoid the instant depreciation when you wheel it out of the showroom. But the way PCPs work mean low monthly payments, and I guess that's what appeals. Yes, you may pay more in the long run, but there again, you may pay less as you're not paying for the entire value of the bike. As I have it, you pay for a new bike less the Guaranteed Final Value (GFV), which then becomes your trade-in for the next one. And if you decide you're not going any further after that first contract expires, you give the bike back and that's it - nothing more owed. I guess it would then depend on how much deposit you put down in the first instance.

????? Flawed thinking?