Hi all,

 

Just got off the phone to Skoda to find out a part ex valuation.

 

They told me there are no longer GFV on pcp agreements?  The amount shown is simply what you'll need to pay if you want to purchase the vehicle.

 

Is this true? I chose 0% pcp as worked out a good deal because i noticed  gfv was set quite high, therefore i thought better deal than paying cash for it!

 

Does anyone know if gfv still exisit on skoda pcp?

 

Thanks

The final amount left to pay at the end of the contract is all the gfv was anyway, just named to make the pcp sound more attractive.

7 hours ago, roo said:

The final amount left to pay at the end of the contract is all the gfv was anyway, just named to make the pcp sound more attractive.

 

So is it actually guranteed? Lets say for example gfv is 5k but when you trade in at end of agreement your car is worth 3k. Skoda told me i would need to pay the difference in order to hand it back.

 

I thought the gfv would mean thats what you'll get as a minimum unless you go over mileage of course. 

 

But it appears the guarantee applys but only if buying the vehicle at the end?

 

No, it is not guarateed (probably why they changed the name).

What they do is work out the monthly costs so that the final payment at the end of the contract should be less than what the car is worth. Which is also why the mileage limits affect the monthly cost along with charges for going over.

 

If the car is worth less than what you owe you can walk away (subject to mileage charges and other things).

Skodas solutions website is 

https://www.skodafinance.co.uk/en/private_customers/how_your_agreement_works/solutions_pcp.html

 

It should give you most of the information you want.

I the car is worth less than it would cost you to buy it at the end of the agreement you hand it back, subject to mileage and condition charges.  That's a bit of a no-brainer.

 

If you are on 0% a high GFV is great because they are lending you all that money for the whole agreement period for nothing and your monthly payments are lower.

 

Its not so good of course if you do then want to buy the car, but then go back to my first statement.

 

Traditionally PCPs have been sold on the basis that the car would be worth more than the GFV giving a deposit for a new car at agreement end, but this seems to be fantasy....The "deposit" comes from the discount you could have had on the new car. 

 

So its possible Skoda could make it look as though you are getting the GFV as part-ex against a new car, but that's just the same as when they inflate the value or any old part ex to make you feel better instead of discounting the new price.

Edited 11 September, 20178 yr by juan27