It is explained by both above as:
Car price = X
GVT = Y
Amount to be finance: X – Y = Z
However, it appears on closer inspection that the interest rate is calculated over the entire outstanding car value. Which actually means that the quoted GVT is more like a settlement amount at the quoted point in time.
Perhaps I am too obtuse to understand, but if I am financing Z then I should only pay interest on Z, as the dealer retains car ownership until I settle, if I decide so.
By paying interest on the entire cars value (minus any deposit) it seems like what I am actually doing is financing the whole car with an agreed payment plan based on the quoted amount of payments followed by a single settlement payment, which, is optional.
Of course, I am slow-witted, so I am happy to be corrected.
Have I been missold PCP?
I bought my car a year ago, firstly, we told the salesman we only drive the car at weekends due to commuting and walking to work yet he sold us a diesel that we have since been told we are having problems with as it is not being used enough. Secondly, we were told we could bring the car back and refinance a new car after 2 and a half years however due to a large balloon payment we won’t have paid 50% until the 3 year mark. Thirdly, the balloon payment we were given as the GFV is currently 2.5k more than the car is worth now and we still have 2years to go. How is this possible? Is this claims for misselling?