PCP's are a good idea if all you want to do it 'drive' your car for a fixed period then get another one. If you buy a new car on a 3 year PCP, you'll only have 2 services and no MOT to stump up for.Also if your mileage is low, you may get away with not buying tyres or other consumables.So, in reality it can be a cheap way of motoring as well as getting lower payments.If you take a 5 year bank loan, and keep the car for 5 years, you'll defo be getting into much more expense in maintenance and repairs etc. BMW finance took an enormous hit on residual value products in the last financial year, rumoured to be over £ 100m !!!!! A PCP does take away the potential losses and risk of buying a car, as if the car is worth less than the GFV, the finance house cops the loss, if it is worth more at the end of the agreement, the customers can keep it and usually put it towards the next car. PCP's aren't for everyone, but they have their place in the market, as have bank loans.The amount of the GFV is nothing to do with the dealership, it is the finance company who sets these, usually a % of CAP monitor. RV's have dropped over the past 12 months because CAP prices in the marketplace have fallen ,but they are on the rise again.
