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Something confusing me about the PCP car finance model.

  • 05-08-2022 06:11PM
    #1
    Registered Users, Registered Users 2 Posts: 3


    I'm not interested in getting a PCP deal but I'm still wondering this.

    My understanding of a PCP car finance deal is as follows,

    Lets say a car is €30k

    The dealership gives you a figure for the guaranteed future value after 3 years whuch for the sake if this example could be €18k. YOu also need to adhere to other things like maximum milage, servicing etc.

    So the 30 - 18 is €12k and so that is what you have to cover with your deposit and repayments over the 3 years or whatever the term is.

    This all makes perfect sense.

    My questions are as follows,

    What would a PCP deal look like on a hypothetical car,which appreciated instead of depreciating from new?

    What would a PCP deal look like on a €300k car with no wheels, 4 bedrooms, 3 bathrooms and a small garden and which appreciates in value over time.

    Post edited by michael_01 on


Comments

  • Registered Users, Registered Users 2 Posts: 5,910 ✭✭✭The J Stands for Jay


    It would look like a rental lease, with an option to buy at the end.



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