PCP: Be sure on two key factors in the equation
Personal Contract Plans (PCPs) continue to cause confusion among buyers, judging by the level of enquiries.
That is especially the case around a couple of key concepts.
The first is 'future guaranteed minimum value'. This is the amount the car will be valued at after (usually) three years, provided you've met all the undertakings on mileage, wear-and-tear etc. But it is NOT your car or money. You will have to pay that amount to own the car if you wish. It is the amount outstanding on the vehicle. Call it a balloon payment if you like. I repeat, it is NOT your money and you can't use it as a trade-in value against a new car. Some people think you can.
The second one is equity. This is the difference, if any, between what the car is worth on the market and the aforementioned guaranteed minimum value.
So if the car has a €20,000 minimum value and the market shows (you can shop around) it is worth €24,000, you are €4,000 to the good. That is €4,000 worth of equity you can put towards a deposit for your next deal.
The ideal PCP is where you switch to a new deal paying the same amount each month for a new car. It doesn't always work out that way.
I think it is important that you get down and dirty with the facts and figures of doing a PCP a second time round especially.
That's when there seems to be the potential for misunderstanding and disappointment.