I’m half way through a 4 year PCP agreement with Mercedes Benz Finance (the car’s value was 27500 when I signed the PCP) that guarantees the future minimum value of £12125. My circumstances have changed and now I need a bigger car (currently have a C-class coupe). I was thinking of getting a Nissan X-Trail so I went to a local dealership and asked for a valuation of my car. It surprised me Nissan as well as Audi valued the car at £13000.
Is this the actual car’s value that relates to the GMFV? How come the finance company guaranteed £12125 if the value is now already so low with still 2 years to go. If so, did the finance company get their numbers wrong or is the actual car’s value different than what I was told at the dealerships?
What will happen at the end of my PCP then if the car's value is going to be a lot lower than guaranteed?
Can anyone please explain where my logic is going wrong?