PCP Car Frustration

[kaiser78]

Pickup phone ----> Ring dealer now ------> Question answered.

Jeez, what's wrong with people these days? Is it a Facebook generation thing?

Facewho - isn't that for young people ? As I say I am seeing the dealer later in the week, I am just seeing if anyone in here may be able to clarify in principle in the meantime.

[kevpuk]

Whilst not an expert, I am pretty sure that the G in the GFV means that it is guaranteed, subject to mileage and fair wear & tear etc. The theory is that, at the end of the PCP term, you either pay this amount and keep the car, you sell the car yourself and pay the GFV amount to settle the finance, or the finance company 'buy' the car from you at the GFV amount in settlement of the outstanding balance.

[WTFH]

that's what I thought - so how can the dealer say I owe more at the end of the 3 years? It doesn't seem right.

You see the next bit I wrote - it depends on mileage, servicing (and things like wear & tear). Check your contract.


Was it a main dealer or a generic car showroom?

[Mordac]

If you don't know what they are you are probably not going to be much help

Well, I don't know how to get hold of Angel Dust, and I managed to work outh that GFV stands for Guaranteed Future Value, but that's of sod all use if you already smoked the PCP?

[kaiser78]

You see the next bit I wrote - it depends on mileage, servicing (and things like wear & tear). Check your contract.


Was it a main dealer or a generic car showroom?

It was main dealer, all criteria in terms of mileage, servicing, condition during those 3 years are met as per the terms of the contract.

[kevpuk]

Personally, I would be inclined to call the Finance company, who will likely have a more reliable view, than the/a dealer who may well have different motives....

[Mordac]

First search results page on google - https://www.google.co.uk/?gws_rd=ssl#q=pcp+gfv brings up lots of clear definitions.
The post I guess then is more for the car experts...

Smart arse alert
It never occurred to me to check both acronyms together. That's why I came up with an illegal substance. And car experts? Whatever happened to going out and - shock horror - buying a car? That way you are not subject to the whims and tax fantasies of the so-called Islamic State? (sorry, I meant Government)

[Willapp]

Well, according to MoneySavingExpert (not say they're the definitive source):

The balloon payment (a balancing payment you pay IF you want to own the car). Also often referred to as the Guaranteed Minimum Future Value (GMFV), this is how much the dealer expects your car to be worth after your finance deal ends. It's agreed at the start of your deal. You don’t have to pay this, as you get a choice of what to do at the end of the deal. But it is the sum you’ll pay if you want to keep the car.

(Emphasis mine)

So they certainly suggest that the GMFV is the amount you should have to pay to keep the car at the end of the initial term.

[kevpuk]

Well, according to MoneySavingExpert (not say they're the definitive source):

(Emphasis mine)

So they certainly suggest that the GMFV is the amount you should have to pay to keep the car at the end of the initial term.

And, correspondingly, also what the Finance Company guarantee - i.e. sufficient to pay off the outstanding...

The finance company guarantees that, subject to certain conditions, that the value of your car at this time will be at least the same as the amount outstanding (hence, a Guaranteed Minimum Future Value). So, if you want, you can simply give the car back to the finance company and the finance is settled. If the market value of the car is less than the amount outstanding, that’s not your problem – the finance company takes the loss.

....so, where that leads us is that perhaps the Dealer is trying to do something to help out his brand's finance company? Do they realise that the car has depreciated more than anticipated, and hence trying it on? As I said before, I think you should speak with Finance Company, check agreement etc., but I suspect that you can just hand the car back and all sorted (subject to mileage, condition et al.) and there is some scaremongering going down!

[SpontaneousOrder]

Also... probably ignore what I said and ask the dealer I misread your post.