How is the Guaranteed Future Value (GFV) calculated?
When you apply for a Personal Contract Plan (PCP), your monthly finance payments are calculated from the difference between the new car costs, minus any deposit, and the GFV plus interest. This means the monthly payments are likely to be lower than with Hire Purchase.
At the end of your agreement, if you’d like to keep your car, you’ll need to pay off your GFV in an Optional Final Payment. This essentially ends your contract and makes you the official owner of the car.
What if the used car market falls in value?
Guaranteed Future Value is exactly what it says – guaranteed. So even if used car values do drop unexpectedly, it’s the finance company that carries the risk, not you.
All this means you can hand your car back without losing a penny.
How do I arrange a Guaranteed Future Value (GFV) agreement?
Guaranteed Future Value (GFV) is a component part of a Personal Contract Plan, so would be arranged at the same time via your dealer or finance provider.