4. Personal Contract Purchase - This is a sort of compromise between HP and leasing. When the vehicle is bought, the dealer promises to buy it back after set number of years at a pre-agreed price. Alternatively, the dealer tells you the price at which you can buy the car outright at the end of a set period of payments. So as you weigh up the deal, the Minimum Guaranteed Future Value (MGFV) will be an important consideration.The MGFV is subtracted from the initial purchase price and the remainder is borrowed. Quite often, people will use the MGFV as a deposit on the purchase of another vehicle later.”
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