clarification needed
Discussion
I'm considering buying a used Mini from a main dealer. Looking at the Select Finance offer where you put a deposit down then make 36 payments I'm unclear about the guaranteed future value part. If for example after 36 payments I decide to change the car for a newer one rather than paying this final GFV, do I have to pay the GFV part off or can that amount be used as a deposit on the next car.
I think this is how it works:
At the end of the agreement you either pay the GFV and keep the car or give the car back and walk away, if the car is worth more than the GFV then you keep the difference. That sum of money can then be used as a deposit not the whole GFV, the dealer may be a little more generous in the valuation if you are looking at another car.
Hope that makes sense.
Ian
At the end of the agreement you either pay the GFV and keep the car or give the car back and walk away, if the car is worth more than the GFV then you keep the difference. That sum of money can then be used as a deposit not the whole GFV, the dealer may be a little more generous in the valuation if you are looking at another car.
Hope that makes sense.
Ian
That's exactly how it works and it is a good scheme if you have got the £££££'s readily available.
Youre effectively paying the depreciation. Comparing it with buying a new car and selling it in 3 years is the only fair comparison.
You'll obviously be a lot better off buying a used vehicle financially but having a new car is a lovely thing! I went through every option with the gf when looking for a new car. For her the peice of mind of having a comprehensive warranty and the feel good factor of a new car made it worth while. I would of bought a 2 year old car and owned it.
Youre effectively paying the depreciation. Comparing it with buying a new car and selling it in 3 years is the only fair comparison.
You'll obviously be a lot better off buying a used vehicle financially but having a new car is a lovely thing! I went through every option with the gf when looking for a new car. For her the peice of mind of having a comprehensive warranty and the feel good factor of a new car made it worth while. I would of bought a 2 year old car and owned it.
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