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Irish Times: Price of used cars on the rise in 'truly unique' Irish Market / Impact o

  • 16-06-2021 5:06pm
    #1
    Registered Users Posts: 63 ✭✭ JayReale


    https://www.irishtimes.com/life-and-style/motors/price-of-used-cars-on-the-rise-in-truly-unique-irish-market-1.4590755?mode=amp

    Is it just me or does this part make no sense?

    "However, that’s a pyrrhic victory if you’re coming out of PCP deal – the increase in value will be of no use to you because you’ll be trading in against the originally agreed Guaranteed Minimum Future Value (GMFV) which was part of the original finance agreement you signed. In that case, the extra value is only of use to the dealer who’s going to sell the car on".

    Surely any value appreciation over and above the agreed GMFV equates to additional equity for the seller?


Comments

  • Registered Users Posts: 25 mailspaining


    Was just going to post the link myself! Was wondering about that too. My understanding is that doesn't make sense either.


  • Registered Users Posts: 3,421 ✭✭✭ Wildly Boaring


    No wonder 50% of the public don't understand PCP.
    That statement is madness.

    It made be a pyrric victory if coming out of PCP and wishing to trade against new...... 8f the price of new has risen even more due to new vrt rates. But he's not attempting to make that point.


  • Registered Users Posts: 63 ✭✭ JayReale


    I had to re-read it a few times to see if I had missed something!


  • Registered Users Posts: 12,943 ✭✭✭✭ Toyotafanboi


    I think they mean in a situation where you hand back the car and walk away at the end of the 3 years, but nobody does that. It is terribly worded in fairness.


  • Registered Users Posts: 72,780 ✭✭✭✭ colm_mcm


    I think they mean in a situation where you hand back the car and walk away at the end of the 3 years, but nobody does that. It is terribly worded in fairness.

    Sure it would make no difference what it was worth in that case.


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