PCP isn't MSE

Sea_Shell

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

fred990

Sea_Shell said:

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

I was in a large BMW dealership about 18 months ago, two of the salesmen said they couldn't remember the last time someone actually wanted to buy their own car! 

motorguy

Grumpy_chap said:

motorguy said:

Interest rates on new car PCPs tends to be quite minimal.  If i was running with a PCP on a new car i'd be looking to pay 2.9% APR max, though less than that and 0% are available depending on the car.  

This, itself, is a big distortion of the market.  The lower-than-market interest can only be offered because the cost is incorporated into the price.  It requires that everyone pays for the interest whether they need it or not.  It would be far more money saving overall if the car was £1k cheaper and then those that need finance take that on the best available rate on the lower balance.

When you own the finance company as these manufacturers do and you're borrowing hundreds of millions if not billions, then they will be getting the money at tiny interest rates, hence why they can offer extremely low rates, so i dont think its a "big" distortion as you think.

And for all of the "well of course i always buy my cars for cash" talk, only a tiny minority actually walk in to a dealers and buy a new car with cash anyway, and they can still avail of any manufacturer incentives for taking out the finance and then clear the finance OR avail of the close to zero or zero rate finance anyway.

And this is very much a "be careful what you wish for, in case you get it" scenario.  Palatable new car deals translates to cheap used cars on the market down the line.

motorguy

Sea_Shell said:

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

And? 

Are you citing that as a problem?  If people can avail of a palatable finance deal on a new car and can afford it then why not?

motorguy

fred990 said:

Sea_Shell said:

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

I was in a large BMW dealership about 18 months ago, two of the salesmen said they couldn't remember the last time someone actually wanted to buy their own car! 

Yup.

If theres a palatable, affordable finance deal on offer, why would someone want to use their own hard earned?

And conversely, if they're treated it as a rental (deposit + X payments then hand it back / trade it in) then if they're happy with the monthly payment and can afford it, why not?

Life is not for most people about eking out a spendthrift living, nor are any of us in a position to judge others on how others chose to spend their money during the time they are here.

BOWFER

As I see it, cars have just become glorified mobile phones.
You choose a 'tariff' you're happy with and upgrade every few years.
No repair costs to worry about and you're always in the latest tech.
No problem with that at all.
Only problem, IMO, tends to be 'stick in the muds' who have this desire to 'own' stuff.
I'm 54, but these folk make me feel young.

Sea_Shell

motorguy said:

Sea_Shell said:

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

And? 

Are you citing that as a problem?  If people can avail of a palatable finance deal on a new car and can afford it then why not?

No problem for me, it's not my money!

But it's a bit like a middle class version of getting a new TV from Bright House, albeit at better interest rates!

BOWFER

Sea_Shell said:

But it's a bit like a middle class version of getting a new TV from Bright House, albeit at better interest rates!

It's absolutely nothing like that, but if it makes you feel better then whatever pickles your cucumber.

dipsomaniac

ontheroad1970 said:

dipsomaniac said:

Firstly. I am guessing there is not a lot of multi millionaires on this site looking to save money

Secondly, I don't see my £200 focus as a 'banger'

I am just saying PCP is not money saving imho

Don't understand your last paragraph. Hope you are not saying I should leave this forum??  I am offering my opinion, nothing more.

Are you trying to hit a post target, or just trying to be difficult?  For you it might not be cost saving, but a 0% deal over 3 years can be a cost saving to some.  Unless you propose to take over the site from the owners, I don't think it's up to you to decide its remit

Deserves a repost 🙂 one for the road 😀

Herzlos

fred990 said:

Sea_Shell said:

I'd wager that where I live, they'd be hardly a single new Mercedes, BMW, Audi, or Jaguar on anyone's driveways without PCP.

As it is, we seem to be awash with them.

I was in a large BMW dealership about 18 months ago, two of the salesmen said they couldn't remember the last time someone actually wanted to buy their own car! 

Why would you want to sink £50k of your own money into a depreciating asset when you could do something else with it and earn a higher yield than the PCP finance?