What risk arises if the purchase option at end of PCP is not exercised?

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Multiple Choice

What risk arises if the purchase option at end of PCP is not exercised?

In PCP arrangements you have a final purchase option that lets you buy the car for an agreed price (the GMFV) at the end of the term. If you choose not to exercise that option, you don’t own the vehicle. The risk is twofold: you give up the chance to own the car at a predetermined price, and you may still face end-of-term charges if you return the car (for example for excess mileage or wear and tear). So, not exercising the option means you lose ownership potential and could incur end-of-term costs instead of building equity in the vehicle.

In PCP arrangements you have a final purchase option that lets you buy the car for an agreed price (the GMFV) at the end of the term. If you choose not to exercise that option, you don’t own the vehicle. The risk is twofold: you give up the chance to own the car at a predetermined price, and you may still face end-of-term charges if you return the car (for example for excess mileage or wear and tear). So, not exercising the option means you lose ownership potential and could incur end-of-term costs instead of building equity in the vehicle.

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