Should I pay by cash or go for a PCP?

I'm looking to exchange my car for a newer model and the Mercedes-Benz dealer is pushing PCP. Should I pay cash? The dealer has quoted £300 ppm over four years.

Asked on 4 March 2019 by

Answered by Honest John
Do the sums. Work out the total on the PCP: deposit, monthly and GFV (guaranteed future value), then compare that to cash. The GFV will give you some idea of how much the car will be worth in four years time if you choose to pay cash.
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