PCP balloon is deferred cost, not a discount

A low UK PCP monthly usually means a large optional final payment (GFV) is waiting at the end — not that the car is cheaper.

Why it works

PCP amortises only the gap between price (minus deposit) and the balloon. Interest still accrues on the amortising slice; keep-or-return is a separate decision when the term ends.

Do it exactly

Estimate with the rule, then check it against the calculator that models it properly.

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