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The key to a PCP is that the finance company offers a guaranteed (minimum) future value that is equal to the balloon amount. That means you can give the car back at the end of the agreement, or part-exchange it with a car dealer on another vehicle, instead of paying off the balloon.
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Image created by Robert A. Rohde / Global Warming Art 5 million years of cooling. The last five million years of climate change is shown in the next graph based on work by Lisiecki and Raymo in 2005 .