You have to know your mileage requirments and contracts vary!

Yesterday 2 adverts on the same page in a daily paper - Pug 108 and a Toyota Aygo (same car!!) one was £123 per month, one was £124.... however one contract was 6K per yr and the other 10K

Alos be sure you can live with the car for the 2-5 year contract as termination charges for early return can be harsh - as can the refurb costs for dents and scratches etc etc

I'll copy over what I've just written on another thread.

If, like me, you buy new to avoid unforeseen maintenance costs, a PCP is fine as long as you don't intend to hand the car back at the end of the contract. If you do, they charge you a lot if you go over the mileage set out in the contract and go over the car with a fine toothcomb for dents, scratches etc.

But if you're likely to change it for a new one or pay the balloon payment and keep the car, PCPs have a lot going for them.

One car I wouldn't buy new is a Ford: they lose their value too fast (faster then they deserve to), or anything French for the same reason. Ideally the car should hold its value well enough so that at the end of the contract it's worth more than the guaranteed value (= the balloon payment) and if necessary provides someor all of the deposit for a new car.

Rightly or wrongly, the German marques hold their value best.

Note others' comments above: if the guaranteed value is set too high, you'll either have to pay more (if you keep the car) or have less or no depoait for a new car (if you PX it). If it's set too low, you'll be paying more per month.