Is it any wonder people lease/PCP?

Herzlos

Convenience.

BOWFER

fred246 said:

The majority of car warranties are 3 years. Even if nothing is done at a service the majority will be fine especially the low mileage ones. So there won't be any repercussions while the dealer is responsible. It's the owners who buy them afterwards who would suffer.

Think 3 is pretty rare now, most are 4/5/7 now.

motorguy

anonymous112433 said:

Leasing or buying on finance is just throwing money away on interest. Honestly why is the general public so eager to throw their money away?

There are no interest charges on a lease.  Its a rental.

Many new cars on PCP are at 0% finance or a minimal rate.  

payless

Interest may not be explicit but lease payments are effectively a combination of interest and depreciation + management/profits for the lease company.

Zero rate pcp are again reflected  in the overall deal.

thats not to say there can be good deals to be had if you are prepared to look / understand the contract 

Grumpy_chap

payless said:

Zero rate pcp are again reflected  in the overall deal.

This is true.  Sometimes, however, the way the deals are structured (for the supplying dealer and the consumer), there is not a better cash price available in lieu of the zero rate finance.  All wrong in my book, but what do I know?

The car sales process is one of the most absurd things and does not serve anyone well.  I have in the past gone out to buy a car and ended so frustrated I kept the old car.  I have also twice purchased cars, only to be told afterwards that the original dealer I visited would have done better on price.  The time for the dealer to do a deal is when I am sitting in the office ready to pay the deposit, not a few hours or few days later.  Surely, these days, dealers know that before going to look at the car, buyers have scoured the brochure, decided what they want, checked best prices through online brokers and only then visit the local dealer to have a look in the flesh and sign the order.  If that dealer does not do the right thing at that point, then the customer will go elsewhere.

motorguy

payless said:

Interest may not be explicit but lease payments are effectively a combination of interest and depreciation + management/profits for the lease company.

Zero rate pcp are again reflected  in the overall deal.

thats not to say there can be good deals to be had if you are prepared to look / understand the contract 

They are yes, however the interest rate the leasing company will achieve and the discount the leasing company will achieve will be very different to what an individual can.

Zero rate PCP - yes, reflected in the deal, but its interest free and there is no extra discount to be achieved by not taking the interest free option.

Merely pointing out that interest charges neednt be punitive - in fact right now they can be extraordinarily low, if not zero on some deals.

It is very much worth bearing in mind that the bouyant new car market inputs in to the used car market, meaning a good selection of used cars at sensible prices.  

There is a place in the market for everyones buying choices, and that doesnt make someone elses choice "wrong".

motorguy

Grumpy_chap said:

payless said:

Zero rate pcp are again reflected  in the overall deal.

This is true.  Sometimes, however, the way the deals are structured (for the supplying dealer and the consumer), there is not a better cash price available in lieu of the zero rate finance.  All wrong in my book, but what do I know?

The car sales process is one of the most absurd things and does not serve anyone well.  I have in the past gone out to buy a car and ended so frustrated I kept the old car.  I have also twice purchased cars, only to be told afterwards that the original dealer I visited would have done better on price.  The time for the dealer to do a deal is when I am sitting in the office ready to pay the deposit, not a few hours or few days later.  Surely, these days, dealers know that before going to look at the car, buyers have scoured the brochure, decided what they want, checked best prices through online brokers and only then visit the local dealer to have a look in the flesh and sign the order.  If that dealer does not do the right thing at that point, then the customer will go elsewhere.

It is worth remembering that its very easy to "sell" cars.  Making a sustainable business and profit from them is something else altogether.

That broker price may be from a dealer who has a car in stock that they werent expecting to, or a cancelled or, or needs to meet a particular quarterly target. 

Another dealer down the road might not want to / have to do that particular deal.  They may be quite happy to wait for the right customer with the right trade in and taking the right finance deal.  They may not be particularly bothered that a particular customer with no trade in, not taking finance and demanding the max discount goes elsewhere.

Selling cars is not about fire saling every car out the door at no or minimal profit.  That doesnt pay the bills.

[Deleted User]

Some people like the freedom and don't want to be tied up into unnecessary monthly finance payments. 

[Deleted User]

Herzlos said:

Autotrader has 206 cars nationally for under £500 and half of them seem to be non-runners.

Must people selling £500 cars don't list them on Auto Trader. But there is still alot to be had at the cheap end of the market by combining eBay, Gumtree, Facebook Marketplace, asking around etc.