Wheel Deals and Steel Feels

Navigating the Car Financing Maze.

Photo by Jonathan Gallegos on Unsplash

Just sealed the deal on a 24-month PCP for a sleek Nissan Ariya, a 2023 model with just 2K on the dial. Priced at £27,500, my monthly outlay comes to £425, all-in, with a £2,500 down payment kicking things off.

Here’s the twist — the Guaranteed Future Minimum Value (GFMV) is pegged at £23K.

Let’s break it down: What’s this electric beauty really going to be worth after adding a total of 12K miles over our contract term? To the numbers we dive.

Depreciation’s Grip on Electric Dreams

Generally, electric vehicles (EVs) like the Ariya take a depreciation hit of about 30–40% over the first three years, more upfront and then it tapers. Applying a conservative estimate:

• Year 1: Knock off 20%.
• Year 2: Another 10% takes a bow.

Here’s the quick math:

• Year 1 Value: £27,500 x 0.80 = £22,000
• Year 2 Value: £22,000 x 0.90 = £19,800

Stack this £19,800 against our GFMV of £23,000, and we’re looking at a financial cushion that might just be softer than expected.

Comparing the Market