BMW X5 Diesel - Used or New - why so expensive do you think? + Pessimistic GFV

NottinghamKnight

gzoom said:

If saving money is your main concern have a look at eBikes. Mine is coming up to 10 months old, the battery has been charged 23 times to cover 1300 miles. Each full charge is 0.3kWh after charging losses, so just 7kWh needed to cover 1300 miles, or 185 miles per kWh.

So it'll cost barely £5 in electricity to do 10k miles on it interms of fuel costs. Add on to that no insurance costs, tyres are £20 each, £10 brake pads you can change at home, it makes any other forms of transport seem extortionate, plus you get fit

Well apart from a push bike.

NottinghamKnight

I wonder how many people would actually check the gfv at the end of the deal though, many would simply hand it back and the finance company would get the immediate profit on the second hand sale. I assume demand outstrips supply for many of these vehicles and many purchasers do any transaction on the basis of a budget, if that budget is met then residual values may not form any part of their thinking. 

DrEskimo

NottinghamKnight said:

I wonder how many people would actually check the gfv at the end of the deal though, many would simply hand it back and the finance company would get the immediate profit on the second hand sale. I assume demand outstrips supply for many of these vehicles and many purchasers do any transaction on the basis of a budget, if that budget is met then residual values may not form any part of their thinking. 

Very few hand it back. I remember seeing a stat of around 90% trade it in a few years back. Dealers typically ring around 6-12months before the end of the term to already negotiate the next deal and keep the new car sales rolling. It's fairly common for them to simply absorb the negative equity in the reduced discount of the next. Too many only concentrate on the monthly.

It's also worth bearing in mind that recent legislation now means manufacturers need to offer the car for substantially under the predicted value to the consumer otherwise they are liable to increased VAT:

https://albertgoodman.co.uk/changes-to-vat-on-pcp-contracts/

NottinghamKnight

DrEskimo said:

NottinghamKnight said:

I wonder how many people would actually check the gfv at the end of the deal though, many would simply hand it back and the finance company would get the immediate profit on the second hand sale. I assume demand outstrips supply for many of these vehicles and many purchasers do any transaction on the basis of a budget, if that budget is met then residual values may not form any part of their thinking. 

Very few hand it back. I remember seeing a stat of around 90% trade it in a few years back. Dealers typically ring around 6-12months before the end of the term to already negotiate the next deal and keep the new car sales rolling. It's fairly common for them to simply absorb the negative equity in the reduced discount of the next. Too many only concentrate on the monthly.

It's also worth bearing in mind that recent legislation now means manufacturers need to offer the car for substantially under the predicted value to the consumer otherwise they are liable to increased VAT:

https://albertgoodman.co.uk/changes-to-vat-on-pcp-contracts/

Fair point, so presumably do as you say, dealer offers a grand over the gfv as a part deposit contribution, gets the commission and finance kickback on the new purchase and makes a few grand on the old car, what's not to like. 

Bachelorplace

OOOO good one Eskimo - what a find..
Spoke to someone the other day about used X5s - simple case of supply - in-terms of the OP point. 
Normally around this time there are tons of pre regs to flog but now, they just don't have the stock, I think this is why there are none around - thus pushing the price up. Sometimes it is just as simple as that. Many retailers are more profitable as a result of the virus than before. 
Many spending on cars instead of holidays - having a F- it attitude - desiring some pleasure etc etc.