Just read this on PH regarding PCP
"The main issues raised here are entirely focused on the GFV and any equity left over at the end. This demonstrates that folks are missing the point. I have sold lots of PCP packages, and every time, wether negotiating the deal up front, or negotiating for the replacement at the other end, folks are obsessed with 'how much' it is worth in relation to the GFV. They are also overly concerned with how much it costs new as well, folks still have this 'The new one costs X' and at three years old 'It is worth X but, the GFV is X'. The customer wants the dealer/finance house to take any risk of loss, hence a GFV, but doesnt want them to keep any surplus. And therein lies the mistrust of PCP.
Forget all about what things cost or what they are worth, if thats your bag, get plain old fashioned chucky.
If you go to buy in the US, nearly everyone is on a PCP, and all they talk about is 'rental'. No one gives a hoot what the cars costs and what it will be worth and the GFV. All that matters is the payment, or rental. The salesman will ask 'Whats your current rental and how much you want to spend on rental?' and what you look at and buy is based on rental, what the sticker price is and what the residuals are hardly rate a mention. If you are comfortable with the rental to drive car X is all that matters. In fact you sometimes wont even get prices on the cars, just typical rentals because they have become the principal price issue.
Best way to approach a PCP is as if you were paying a visit to Avis for a three year rental rather than to a showroom to buy. As soon as you get bogged down in 'how much' at the end, you have missed the point. If you dont want the dealer to get any benefit out of any suprplus, you have to take ownership. But ownership means you have to take responsibility for any loss too. PCP isnt about any of that. It is rent and repeat, rent and repeat."