The final optional payment is known as the ‘guaranteed future value’ (GFV) and is stated at the outset of the contract and is determined by the term and annual mileage. A maintenance package can also be included where a car is bought through personal contract purchase.
To recap, at the end of the term the individual has three options:
- Hand the car back to the finance company at no expense to the user, however an excess mileage charge may be incurred if the stated mileage is exceeded.
- Purchase the vehicle at the GFV value. We can also arrange a re financing package for the cost of this if required.
- Use the vehicle as a part exchange as there is usually some equity between the GFV value and the part exchange value which in turn acts as a deposit on the replacement vehicle.