You need to double check those figures.
Car costs £106k
MGFV at end of term (48 months) = £47,000
Depreciation = £106,000 - £47,000 = £59,000
Less Deposit £25,000 = £34,000
PCP is financing the depreciation plus interest.
Lets say Interest is 6.5%
Depreciation + Interest = £34,000 x 1.065 = £36,210
Over 48 months = £754 per month
Excludes fuel, servicing, maintenance, VED, MOT.
Assumes 5k miles per annum (otherwise costs increase due to excess mileage penalty - usually applied by reducing the MGFV
IF I've not over-simplified it and if I've not overlooked something of significance, then those figures quoted do not make sense to me and I'd be back asking them to clarify and break them down much as I have done.
If there are any professionally qualified accountants on the forum, perhaps they can add their view and correct me on anything (I am NOT an accountant).
Maybe I've got it completely wrong? £1200 per month versus above £754.
Lifetime cost £86,400 versus £61,210?????