XC90 GFV on PCP

[ian77]

The only reason I went PCP rather than PCH was the flexibility of being able to extract myself more easily if I wanted a change before the term was up. I was never sure I could walk away from a PCH after 3 years rather than 4.

[volvocamper]

Originally Posted by ian77

The only reason I went PCP rather than PCH was the flexibility of being able to extract myself more easily if I wanted a change before the term was up. I was never sure I could walk away from a PCH after 3 years rather than 4.

I think ease of extraction and ability to keep car at end of the term (having paid balloon payment) are the main attractions of PCP over PCH. It then depends how much these benefits are worth to you in terms of £££s i guess.
As others have commentated I am not sure which is right or wrong and others have come to same conclusion.

[Dohnut]

Not sure it’s been mentioned but one of the attractions of PCH over PCP is road tax, as it’s incorporated into the monthly price you pay over the term of the lease.

[volvocamper]

Originally Posted by Dohnut

Not sure it’s been mentioned but one of the attractions of PCH over PCP is road tax, as it’s incorporated into the monthly price you pay over the term of the lease.

Very very good point Dohnut. The initial (and highest) RFL is included in PCP but the following years are not (at £480/annum currently). All RFL is included in PCH.
My figures for PCH v PCP had taken into a/c these road fund costs so the £8k difference between the 2 was with the RFL costs on PCP.
No one has suggested the £8k difference between the Volvo Finance GFV and the actual value in 4 years time is unachievable which is good. PCP would allow me to get out of it at any time and to buy the car at the end if i wished but I will have paid an additional £8k over the 4 years for the privilege of this - this will have brought the GFV (or purchase) price down so is good but if i decided to buy it and sell straight away as I say the actual value would need to be £8k above the GFV to break even - it may be, it may not be.
I have looked at it all ways and could not decide between the 2 options hence asking opinions on here. It really does seem a 50/50 call, which is the same conclusion I had come to. If you definitely want option to keep car at end then only 1 way to go though.

[Lozzingers]

Hi,
I have recently bought using the 50% down, and 50% over 3 years at 0% Apr which worked best for us.
My concern at looking at present 3 year old xc90 values to base your numbers on are a) present second hand values are hugely inflated over longer term due to the chip shortage, and b) with the new xc90/xc100 or whatever it will be called, second hand values may well reduce significantly. I hope they don't as my man maths calculator won't like it, but may make me lean towards pch as I'm not sure the equity will be as big as the 8k differential you mention at present.
Just my thoughts! 😊

[bluey_xc90]

I think with the proposed price increases on the replacement xc90/100 (EV version rumoured to be £100k!, hybrid £75+) it will mean existing xc90 values remain high. They have quietly announced the xc90 will remain in production now for longer and will not be phased out in 22/23, presumably due to the push upmarket of the newer larger car and chip shortages

[Crockers]

I have with my last 2 Volvos gone the 50/50 route over 3 years. Then I keep them 5 years (service package).
Find the value of the car isn’t far off the 50% deposit needed, especially if you factor in2 years of no payments.