PCP Car Frustration

[kaiser78]

My 3 year PCP car offer comes to an end in Aug and I have received a letter from the dealer around what to do next.

When the deal was agreed, my guaranteed future valued was stated. However in the letter received it states that I will owe more on the car than the gfv, making the final repayment higher than the gfv. I thought gfv is the same as what is owed at the end of the term ? What’s more the valuation on the car is stated as lower than the gfv. So I would be paying more than the gfv if I decided to buy outright, for a car that is worth less than the gfv. This doesn’t seem right.

This is the first PCP deal I have done, and the intention was to pay off the balance at the end of the 3 years to then keep the car. I thought that the gfv would be a fair price that would make it worthwhile – am I just in an unfortunate position, or is the dealer making out that it is not worth buying out the car and taking out another PCP offer (which I won’t) ?

I am meeting the dealer this week to understand the numbers - has anyone else faced this situation before ?

[WTFH]

I'd check your paperwork - the point of a GFV is that it is guaranteed.
...unless you have gone over the mileage, not had it serviced etc.

[Mordac]

Can we have this in English please? PCP, GFV? If Google doesn't have a clue, what chance for the rest of us mere mortals?

[dx4100]

Can we have this in English please? PCP, GFV? If Google doesn't have a clue, what chance for the rest of us mere mortals?

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

[kaiser78]

Can we have this in English please? PCP, GFV? If Google doesn't have a clue, what chance for the rest of us mere mortals?

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...

[kaiser78]

I'd check your paperwork - the point of a GFV is that it is guaranteed.
...unless you have gone over the mileage, not had it serviced etc.

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.

[SpontaneousOrder]

I thought gfv is the same as what is owed at the end of the term ?

No. Of course it isn't. That's where your problem lies.

GFV is what they'll use as a trade-in price for a new car.

For a start, you're paying a hefty finance fee. It would make no financial sense for the dealer to just charge you the car value and ignore the finance costs.

[DimPrawn]

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

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

[diseasex]

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...

You agreed to GFV which will be honored by them i guess? It wasnt said that car might be of higher value. What you can do , if you think you can get more, try selling it privately and buy PCP out.

[SpontaneousOrder]

The GFV is a hedge for both parties. It would make no sense (even ignoring the finance costs I mentioned before) for it to be particularly realistic.