No deposit on PCP

[AudiMan9000]

As a general proposition, does not putting any deposit on a PCP mean you’ll likely be in negative equity for longer, probably until the end of the term? Or is that counter balanced by the fact you’re making bigger monthly payments as a result of the lack of deposit?

[anonymous-user]

Likely in NE for longer as the deposit will be spread over all the payments and there will also be extra interest to pay.

[CarlosFandango11]

AudiMan9000 said:

As a general proposition, does not putting any deposit on a PCP mean you’ll likely be in negative equity for longer, probably until the end of the term? Or is that counter balanced by the fact you’re making bigger monthly payments as a result of the lack of deposit?

No deposit means that you’re more likely to be in negative equity.
Paying a deposit means your less likely to be in negative equity, but is counterbalanced by you having paid a deposit.

[AudiMan9000]

So still worth getting it valued vs the settlement figure shortly before the first MOT is due?

[anonymous-user]

Too many variables to say, what’s the length of the PCP, what’s the interest rate, has it been structured to try and give equity in the car or is the final payment artificially high to make the monthlies more attractive, how is the market performing for that specific car, etc.

Get a valuation whenever you want, at least you’ll know where you are.