Taycan starting to look like a bargain
Discussion
JimmyJack said:
If you look at the total amount payable in Harry’s quotes you can see how the could manipulate the “GFV” as there is a £14k difference in what the customer is paying in interest and as it’s the finance company that is possibly getting the asset back it’s their risk.
Are they charging a higher interest rate on the hybrid because it’s more desirable or because more of the depreciation can be offset by companies and they want to even things up?
The latter I would think. Are they charging a higher interest rate on the hybrid because it’s more desirable or because more of the depreciation can be offset by companies and they want to even things up?
Louis Balfour said:
JimmyJack said:
If you look at the total amount payable in Harry’s quotes you can see how the could manipulate the “GFV” as there is a £14k difference in what the customer is paying in interest and as it’s the finance company that is possibly getting the asset back it’s their risk.
Are they charging a higher interest rate on the hybrid because it’s more desirable or because more of the depreciation can be offset by companies and they want to even things up?
The latter I would think. Are they charging a higher interest rate on the hybrid because it’s more desirable or because more of the depreciation can be offset by companies and they want to even things up?
Comparing the retail prices, as if anyone is paying those prices outright, is at best disingenuous.
Total cost of ownership for the term, incl tax adjustments, is all that matters.
Louis Balfour said:
Both the rate and final payment are set by the lender.
The lender can choose to adjust either to achieve different outcomes WRT payment and to determine their profit in the transaction.
Which is why the rate and final payment are linked and why one affects the other.
In the quotes above the final payments are optional, which implies that they are GFVs.
Ok, I think I can see where you're coming from now so apologies for any misunderstanding.The lender can choose to adjust either to achieve different outcomes WRT payment and to determine their profit in the transaction.
Which is why the rate and final payment are linked and why one affects the other.
In the quotes above the final payments are optional, which implies that they are GFVs.
Typically the final payment is based on projected depreciation. Finance companies have got this wrong in the past and ended up losing out, when customers hand the car back or try to trade in at the end of the term. It's a bit of a balancing act but finance companies don't like losing out.
It's possible to structure a deal with a higher interest rate so that they can specify a higher future value/optional payment. In that way, I guess they could make up the projected shortfall via interest payments. However, I can't see this being a popular option as the whole point of PCP is that the customer hands the car back and continues the merry go round. In this scenario the finance company is left with a vehicle with an over inflated value and has to sell it for less than they've specified.
It causes all sorts of problems as you can imagine, so I suspect the ideal scenario for them is to set the optional payment so you cover the depreciation AND make them money on the interest. But the deal also needs to be attractive, otherwise they won't sell cars (except to companies that can claw back the cost).
JimmyJack said:
The finance company is trying to maximise profit but also must entice customers.
Would this be easier for manufactures with in house finance?
Land Rover finance is Lloyds isn’t it?Would this be easier for manufactures with in house finance?
I don’t think there are many truly in-house finance setups. VW maybe? But even then I would expect that to be a separate organisation from the car dealerships.
I imagine it to be a simple process to structure deals to position products and it is unlikely to require approval on a case by case basis:
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
This oneEdited by JimmyJack on Wednesday 14th February 12:25
https://youtu.be/fsYNfaB5om8?si=Z637PRlvaff7xB6A
My local dealer is insisting they're selling Taycans as fast as they can get them.
CLK-GTR said:
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
This oneEdited by JimmyJack on Wednesday 14th February 12:25
https://youtu.be/fsYNfaB5om8?si=Z637PRlvaff7xB6A
My local dealer is insisting they're selling Taycans as fast as they can get them.
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
I watched that, 70k loss on each car just by taking them out the door.Edited by JimmyJack on Wednesday 14th February 12:25
The real kicker was, they were not even going to be the new model
TheRainMaker said:
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
I watched that, 70k loss on each car just by taking them out the door.Edited by JimmyJack on Wednesday 14th February 12:25
The real kicker was, they were not even going to be the new model
TheRainMaker said:
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
I watched that, 70k loss on each car just by taking them out the door.Edited by JimmyJack on Wednesday 14th February 12:25
The real kicker was, they were not even going to be the new model
epom said:
TheRainMaker said:
JimmyJack said:
A vid on YouTube about getting an allocation for a GT3RS but had to take 3 Taycan Turbos at £170k each and tried to offload to the trade at a combined loss of £210k!
I watched that, 70k loss on each car just by taking them out the door.Edited by JimmyJack on Wednesday 14th February 12:25
The real kicker was, they were not even going to be the new model
k the bullst dealership games.greggy50 said:
Some 4S with the battery upgrade are down to 47k asking now.
I wonder how long before 35k buys one.
Won't be long before people start snapping them up. There's only so long before they'll make great sense and it won't matter there's a new one coming with more range etc.I wonder how long before 35k buys one.
Around £40k and I think they'll be a no brainer.
I think the numbers of taycan available on the market is just social media hype. Quick search of autotrader shows that there are slightly more post 2019 (when taycan came out) 911 on market.
Problem is they are a tax efficient vehicle for the 1st user, and then just an expensive car for the next owner. 50k is not cheap. 40k is not cheap with pcp rates what they currently are.
Is it such good value people will get them? Not sure. No doubt lower prices make them more attractive. But Its not a good family car and it's not a performance car most people would desire, whatever the bhp is. So who's going to buy them?
Problem is they are a tax efficient vehicle for the 1st user, and then just an expensive car for the next owner. 50k is not cheap. 40k is not cheap with pcp rates what they currently are.
Is it such good value people will get them? Not sure. No doubt lower prices make them more attractive. But Its not a good family car and it's not a performance car most people would desire, whatever the bhp is. So who's going to buy them?
Edited by covmutley on Friday 16th February 07:56
greggy50 said:
Some 4S with the battery upgrade are down to 47k asking now.
I wonder how long before 35k buys one.
Looking at finance deals for 2 years, they predict 30k in 2 yrs.I wonder how long before 35k buys one.
They'll be great value then but how many people want a large saloon car these days, irrespective of its power source?
Frimley111R said:
greggy50 said:
Some 4S with the battery upgrade are down to 47k asking now.
I wonder how long before 35k buys one.
Looking at finance deals for 2 years, they predict 30k in 2 yrs.I wonder how long before 35k buys one.
They'll be great value then but how many people want a large saloon car these days, irrespective of its power source?
At about £350pm in depreciation they would be good value imo...
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