28-10-13, 07:25 PM
Let me see if I've got this right. So, you go to your local dealer, and under the terms of the particular PCP scheme they do, you work out what deposit to pay, and work out how long you want to pay the finance over. So far, just the same as any finance. But you also agree the GFV = Guaranteed Final Value, at the end of that term, i.e, what the dealer will give you for the bike as trade-in value if you swap for something else at the end of that contract. So you're not paying for that part of the cost of the bike. So say the bike's cost new was £8000. You subtract the GFV, say £4000, leaves £4000 to pay. You put down a deposit, say £1000. So your monthly payments are only for £3000, over whatever length of time you want to pay it, 1, 2, 3 years, whatever. Of course, you are paying interest on the finance, but as it's on a smaller amount than if you were to finance the whole cost, it should be less.
Then, as long as you return the bike at the end of the contract in the condition as agreed at the start, having serviced it as and when required, in standard trim, and within the agreed mileage limit, you get the GFV amount to use as deposit on the next bike, for which you start a new finance agreement. Or, you hand the keys to the dealer and walk away, nothing owed.
Sound right?
Then, as long as you return the bike at the end of the contract in the condition as agreed at the start, having serviced it as and when required, in standard trim, and within the agreed mileage limit, you get the GFV amount to use as deposit on the next bike, for which you start a new finance agreement. Or, you hand the keys to the dealer and walk away, nothing owed.
Sound right?