What does GFV mean?
Discussion
OK, so I know literally that it means Guaranteed Final Value, but what does it actually mean with regards a finance deal, and how does it affect the terms etc?
I was reading about Harris and the FF just now and I realised that if you put a large deposit down on a car on what I guess would be PCP for it to have a GFV (ready to be corrected), what happens if you then sell up without completing the term? Is that while deposit lost? Does the GFV amount have some influence over what happens?
Not sure why I decided I needed to know this now, but hey ho.
I was reading about Harris and the FF just now and I realised that if you put a large deposit down on a car on what I guess would be PCP for it to have a GFV (ready to be corrected), what happens if you then sell up without completing the term? Is that while deposit lost? Does the GFV amount have some influence over what happens?
Not sure why I decided I needed to know this now, but hey ho.
Cheers all.
I think I would find it hard to accept I didn't own the car! If I wanted to change anything about it, I couldn't really, in this situation.
I didn't know that, re: the GFV and how you get a rebate if the car is worth more than the agreed figure.
Do you have to pay the entire remaining finance + GFV then if you decide to change cars mid term?
I think I would find it hard to accept I didn't own the car! If I wanted to change anything about it, I couldn't really, in this situation.
I didn't know that, re: the GFV and how you get a rebate if the car is worth more than the agreed figure.
Do you have to pay the entire remaining finance + GFV then if you decide to change cars mid term?
panholio said:
PCP can be great in some circumstances (I have a car on one).
But a lot of people don't understand it (as demonstrated by this thread on a car forum, God help the general public) and enter into it with misconceptions. This can also be an advantage to the person selling it.
Absolutely. I only have experience of HP in the past. I've always though that PCP et al were difficult to buy with as you'd either need to be saving an additional amount alongside the payments or get a new loan at the end of it to pay the balloon. But a lot of people don't understand it (as demonstrated by this thread on a car forum, God help the general public) and enter into it with misconceptions. This can also be an advantage to the person selling it.
I also didn't realise that you'd have to basically pay off the entire agreement to change cars mid term. That's a big incentive to see it through.
HTP99 said:
You can get a PCP on a used car however with many manufacturers the rates and offers on new cars actually can make it cheaper to finance a new car as opposed to a used car.
I can believe that, from a monthly payments POV, but I don't think I'd ever buy with the intention to give it back after three years, so I'd rather buy a car I think I could pay the final payment on if I wanted to stick with it. I do get bored easily though, so should probably have started buying new cars on PCP years ago. I reckon I have spent an average of £200 a month modifying and maintaining what are, in the grand scheme of things, sh*t old cars for the last ten years.
Well I have learned something from this thread. Can't say that very often on PH! 
What happens with these schemes where you can PX the car at the end and start again with another one? I presume that if the GFV is say, £10k, they don't just give you £10k PX off the next car? That would be like being given free money and we all know they won't do that.
What gives?
What happens with these schemes where you can PX the car at the end and start again with another one? I presume that if the GFV is say, £10k, they don't just give you £10k PX off the next car? That would be like being given free money and we all know they won't do that.
What gives?
panholio said:
With respect, your question beggars belief.
A little strong, no? I've never, ever read anything about or had anyone explain PCP to me. I just wanted to learn, that's all. It seems to have become a very common thing in the marketplace, so I feel it's prudent to have a clue about it. What I was getting at with that last question is that you are basically stuck with either needing to find a big deposit to change, needing to find a big balloon payment or you end up with nothing. I just wanted to make sure I had that right.
It does sound like a lot of people get into these deals with no clue about this or about how they will raise the money needed at the end of the agreement.
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