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Last car we bought on PCP was our first Berlingo, a 1.8D, in 2005.
Paid a deposit of a thousand plus then regular monthly payments. The agreed final value at the end of 3 years was, IIRC, £3,000.
At the end of three years we could
- Return it and owe nothing (except any adjustment for condition/mileage)
- If we were lucky it was worth more than £3k at 'trade in' in which case the excess over £3k could be deposit on a new vehicle
- Pay £3k and own the car outright.
As we'd gone waay over the 27k miles in the PCP, the car had a few battle scars and was absolutely perfect as our family car we went for 3 and kept it another 7 years.
Whether, at the end of the PCP, there's any 'equity' over an above the final payment is a matter of luck and how much you've actually paid over the period of the PCP.
PCP suited us at the time with growing kids and Mrs B's teaching limited to part time/supply so not much cash to spare.
Never been tempted again. Last three cars, one new and two s/h from the make's franchised dealer have been cash. It can however be advantageous to go for a PCP and settle early to access bigger discounts.
I prefer to own my cars outright but my daughter's in laws who almost certainly could afford to buy outright have been on one PCP after another for 10+ years. I think though as people who look after their cars they've got very good offers on each car they've returned at end of PCP.
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