I did a few years in the car leasing business working for a finance company. The PCP is basically designed to make "buying" the car more attractive. As Marc says you would in this case end up saving 4000 against RRP on the face of it, but if you walk into a dealer with cash you will probably get more than that off.
The problem here is in the small print, the contract is 6000 miles per annum and excess mileage will be charged if you exceed that. So if you take it back at the end with say 32000 on the clock you will be penalised for 8000 x the excess mileage rate which of course you have to "ask for". Generally it is between 7 and 12 pence a mile, though I have seen it up to 32p a mile, but it does depend on the car, dealer, finance house etc. You would also be responsible for bodywork damage over and above wear and tear and they usually find something to sting you with. Thus you feel forced to buy the car, rather than give it back and pay the excesses, and they will offer a new credit deal for you to pay off the "Balloon". So once you accept that offer and carry on paying £399 a month for however long it takes to clear it you will probably end up paying RRP +around 25% for the car, and have a car by then that is 7 or 8 years old and worth 10-20% of your investment. Great deal!!! (it is for the dealers and finance houses) [Figures subject to my age, been out of the industry since 2000!]
I'll stick with my £700 C5 Exclusive MK1 thanks
