How does it work?
Imagine you sign up for a PCP over three years. The car costs £20,000 and the finance company calculates that the car will be worth at least £8,000 after three years. Here's how that would look...
- You pay a deposit, eg, £2,000 with a loan for the rest, so £18,000.
- You then owe £18,000. Though, as it's been agreed that the car will be worth £8,000 at the end (This is the GFV guaranteed future value), you only repay £10,000 (Plus the agreed amount of interest) over the three-year period.
- At the end of the agreement, you have 3 options (See below)



