What is guaranteed minimum future value?

What does GMFV mean, and how can it affect your personal contract purchase lease? Learn more about this figure and how it’s calculated.

If you’re considering a personal contract purchase (PCP) lease, you’ve probably heard a lot about a car’s guaranteed minimum future value. When you choose a PCP car lease, your monthly payments will be based on the initial value of the car, your deposit, and the car’s GMFV. 

In this article, we break down everything you need to know about GMFV and share how a car subscription with Onto features transparent pricing - and no large final payments.


  • Guaranteed minimum future value (GMFV) represents an estimated value of a vehicle at the end of a PCP lease.
  • The balloon payment, a multi-thousand-pound final payment made to purchase a car on a PCP loan, is based on the GMFV.
  • An electric car subscription with Onto gives you access to the latest electric cars with a monthly subscription fee. Every month you can decide whether to continue, swap or stop, and you don’t have to worry about GMFV!

What is GMFV?

The guaranteed minimum future value is the dealer’s estimate of your car’s value at the end of your PCP lease.

How is GMFV calculated?

To calculate the GMFV, a dealer will look at industry figures for the car’s value and its anticipated rate of depreciation over the term of your lease. From these numbers, they’ll be able to estimate the value of the car at the end of your lease.

When you make your monthly payments on your PCP lease, you’ll be making payments on that expected depreciation. Your deposit also goes toward the depreciation.

At the end of your lease, you will have paid off the difference between the car’s initial value and its GMFV.

Is GMFV the same thing as a balloon payment?

The balloon payment is based on the GMFV. A balloon payment is the final payment you can make on a PCP lease to take full ownership of the car you’ve been leasing.

These payments are typically far higher than your monthly payments. While monthly payments represent incremental decreases in the car’s value, the balloon payment represents the car’s full value at the end of your lease. 

If you choose to purchase your car at the end of your PCP lease, you’ll have to make the balloon payment in full. This payment covers the GMFV and can be in the thousands of pounds.

Transparent car subscription with Onto

When you choose an electric car subscription with Onto, we provide all the information you need to understand how we’ve set your monthly subscription fee.

There are no elaborate calculations, no hidden fees, and no large balloon payments at the end of your subscription, allowing you to enjoy all the benefits of car ownership with none of the hassle.

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