You are right, it is a GFV, and when the car is changed that just gets written off. The car you give back always has equity, therefore you always have a deposit for the new one. I struck a great deal whereby I would only be paying exactly what I am paying now. When I got declined, they suggested my husband's name go on the paperwork but it would still be registered in my name, which was a real relief. However, CCCS refused to let this happen, as the monthly payment would be ongoing and creditors would not like that. I can understand this from their point of view, but in the long run means a lot more expense for me.
The two options CCCS gave me were to return the car (which means I won't have one) and get one on HP (can you imagine the price with no deposit? plus the fact I am on a DMP) - OR - to borrow the £3000 to pay it off! I only started my DMP in December so haven't enough to pay the tax that is needed, or the MOT (I need a new tyre too), so it was suggested I borrow that too!
Don't get me wrong, I am not having a go at CCCS, they are brilliant and I have had a lot of support from them, and thankful for all they have done for me so far. But the best option out both is to borrow and I really, really did not want to do that. Anyway, I have borrowed and it will take about 2 years to repay (although this has been incorported into my budget as Car Finance). I thought my days of borrowing were over, and I feel I have taken a step backwards
I hope if anyone already is on PCP Passport, they realise the consequences if they go onto a DMP.