MG4 Depreciation

[johnb80]

We bought our MG5 Trophy in September 2023, we used a PCP deal with a Guaranteed Minimum Value of £16500 at 4 years with 24,000 miles on it. Just checked with WBAC out of interest, not a year old yet, 3500 miles and their offer £12650. The others are also in the same ballpark. I'm so glad we went down the PCP route.

 

[Chrisdriving]

Why are you glad, thats all your car is roughly worth, the GFV means nothing other than that is what you will need to pay to clear the finance to own the car.
They are set mickey mouse high to keep deposit and monthly payments lower.
You will be handing this car back at 4 years.

GMFV Meaning | Guaranteed Minimum Future Value

We explain the ins & outs of the GMFV (Guranteed Minimum Future Value), which plays a big part in any Personal Contract Purchase (PCP) finance plan.

www.stoneacre.co.uk

 

[johnb80]

Why are you glad,

If I’d bought it outright it would have cost a fortune in depreciation.

thats all your car is roughly worth, the GFV means nothing other than that is what you will need to pay to clear the finance to own the car.

And it also sets the amount you finance

They are set mickey mouse high to keep deposit and monthly payments lower.

Why would they do that? It’s not to their advantage to set the value high.

You will be handing this car back at 4 years.

I have spoken to both my MG dealer and to the finance company, they both say it’s negotiable.

GMFV Meaning | Guaranteed Minimum Future Value

We explain the ins & outs of the GMFV (Guranteed Minimum Future Value), which plays a big part in any Personal Contract Purchase (PCP) finance plan.

www.stoneacre.co.uk

 

[tsedge]

Yes, and it is this last point that is most relevant.

I think most people just assume that there's no choice other than handing the car back or paying the MGFV to own it - but there's nothing stopping you negotiating on this because they'll be selling it for a lot less than the MGFV and will incur auction costs etc...

 

[Chrisdriving]

Nissan used to set the GFV high on the Leaf to create false low monthlies to keep payments down to help them sell.

Some finance companies do indeed accept an offer as they know what it’s worth of course, again RCI did this for some people with the Leaf back in the day.

Looking to get my 4th EV soon an X Power, seeing crazy discounts on them currently, best was brand new for 28k, still be tempted to Lease one though as that can work out cheaper still.( £8500 over 24 months)

Just purchased my Model 3 from Lex Autolease, paid 19k over 4 years lease cost and they sold it to me for 18k(WBAC 20k) so much cheaper than new price ?.