Why is PCP cheaper than cash?
That’s a great question, and the answer is all to do with the flexibility a PCP car finance deal provides.
Unlike using your savings, with a PCP car finance deal you don’t pay the full amount for the car. Instead, we’ll guarantee the value (GFV) of your new car based on your annual mileage and term.
Take, for instance, you plan to keep your new car for 4 years and cover 8,000 miles a year. If the car is priced at £11,299 and you pay a £99 deposit, your optional final payment could be £4,260 - subtract this from the price of the car and the total amount of credit is £6,940.
Instead of using a bank loan or savings for the full amount, a PCP gives you more freedom with some fantastic options should you want to change the car.
Because repayments are usually lower vs an HP car finance deal, you’ll save money each month too. Remember with a PCP you can re-finance the Guaranteed Future Value (GFV), part exchange the car and get a new PCP deal, or simply hand the car back to the finance company and walk away.
This is an exciting opportunity to own the car of your dreams. Remember at FOW deposits start from just £99. And you can reserve online for FREE for up to 48 hours - no one else offers this, speak to us about a personalised video or buy online or instore. This is car shopping on your terms.