Something confusing me about the PCP car finance model.

michael_01

I'm not interested in getting a PCP deal but I'm still wondering this.

My understanding of a PCP car finance deal is as follows,

Lets say a car is €30k

The dealership gives you a figure for the guaranteed future value after 3 years whuch for the sake if this example could be €18k. YOu also need to adhere to other things like maximum milage, servicing etc.

So the 30 - 18 is €12k and so that is what you have to cover with your deposit and repayments over the 3 years or whatever the term is.

This all makes perfect sense.

My questions are as follows,

What would a PCP deal look like on a hypothetical car,which appreciated instead of depreciating from new?

What would a PCP deal look like on a €300k car with no wheels, 4 bedrooms, 3 bathrooms and a small garden and which appreciates in value over time.

The J Stands for Jay

It would look like a rental lease, with an option to buy at the end.