Join PCP finance and you will encounter the expressed word‘equity’. This is the difference between value between exactly how much your car will probably be worth whenever you want while the amount that is outstanding owe through the automobile finance contract.
Consequently, in case your vehicle is really worth ?10,000 and you also have ?9,000 kept to pay for, there’s ?1,000 worth of equity into the car. The higher the equity, the greater amount of cash you need to put towards a deposit in your car that is next if hand your old one returning to the dealer and move into another PCP scheme. Continue reading PCP finance: all you need to find out about equity and exactly why it is necessary