Car finance on the up

[W12GT]

I usually buy my cars outright but on occasions I have gone the PCP route when it suits the car I’m buying.

I’ve noticed there has been a big jump recently across the board, definitely above the BoE rate so they are pricing in considerable increases for the future. Porsche have gone from 6.9% to 10.9% and others are north of 12.9%, just wondering how hard this will affect the car market, not only slowing down of sales but reducing the screen prices and of course most importantly the px values….

Anyone changed cars recently and noticed a difference from what they were expecting?

Obviously a very strange market given that there’s a shortage of many new cars and therefore long lead times.

I’m aware that Porsche have had a number of cancellations on some of their models, so assume other manufacturers will be experiencing the same.

Any predictions on what we are going to see over the next 3/6/12 months?

[Chainedtomato]

Yup, picked up a new VW last Saturday 29th on PCP they were in a massive rush to get the finance in place before beginning of November as the rate was jumping significantly, similar to your example

[jamiedimonBTClover]

12.9% what currency? That can't be GBP or from a finance arm of a manufacturer? Unless it's some sort of sales wheeze, surely? Its obviously going up, but that's bonkers rate? Unless it's an unobtainam model and they are juicing the profit through finance...

Is this new?

I'm quite astonished, but colour me wrong.

I have a M2 incoming, but below 6%. I'm max deposit for PCP; but those rates seem really high (albeit I'm not in Porker / Bentley land). I may have been lucky because of a dealer screw up on something else - but even with rate hiking this seems nuts.

I suspect given the arse dropping out of economies the finance contribution may return in significant form. It won't be lack of super conducters that are the problem soon; just demand.

[BenB91]

In theory, higher rates should decrease demand for expensive cars.

There is likely to be less demand for super car financing, as the cost of interest is far higher, making it less attractive and/or affordable.

In turn, used cars should depreciate faster.

[MitchT]

jamiedimonBTClover said:

12.9% what currency? That can't be GBP or from a finance arm of a manufacturer? Unless it's some sort of sales wheeze, surely? Its obviously going up, but that's bonkers rate? Unless it's an unobtainam model and they are juicing the profit through finance...

Four year old BMW 440i at a main dealer. Not a rare spec...

[W12GT]

jamiedimonBTClover said:

12.9% what currency? That can't be GBP or from a finance arm of a manufacturer? Unless it's some sort of sales wheeze, surely? Its obviously going up, but that's bonkers rate? Unless it's an unobtainam model and they are juicing the profit through finance...

Is this new?

I'm quite astonished, but colour me wrong.

I have a M2 incoming, but below 6%. I'm max deposit for PCP; but those rates seem really high (albeit I'm not in Porker / Bentley land). I may have been lucky because of a dealer screw up on something else - but even with rate hiking this seems nuts.

I suspect given the arse dropping out of economies the finance contribution may return in significant form. It won't be lack of super conducters that are the problem soon; just demand.

Funny you should state M2 - BMW used is now 12.9% on an M8, and that’s GBP…

[chrisch77]

And a percentage is a percentage. It has nothing to do with the currency…?

[lrdisco]

Picking up a nearly new Maserati Levante on PCP at 6.9%. I did see some daft rates on BMWs and Mercs.

[Matt p]

MitchT said:

Four year old BMW 440i at a main dealer. Not a rare spec...

Christ, that’s a whole world of nope from me.

[W12GT]

Thing that surprises me about BMW being so high is that Alphera are usually very competitive - when I was looking at an AM Rapide S they were something like 3.9% when Porsche were 6.9%, made for a very attractive deal!

[Puzzles]

Is that a new or used bmw? Either way that interest rate is crazy

[jamiedimonBTClover]

W12GT said:

Funny you should state M2 - BMW used is now 12.9% on an M8, and that’s GBP…

Well, thank you for posting that. I've had it off like a bandit. That's silly (I'm not talking about your post).

I got majorly screwed around on another model, so got into the M2 on a bit of a whim. Nowhere near that rate.

You'd almost be better off remortgaging. That's theft.

Nothing in BMW list justifies that rate.

Pork different discussion.

Edit to add, my rate was for a new M2 to be delivered next year. So that was based on them agreeing the prior agreed rate on a screw-up (delivered wrong colour interior on an M3). Worried, I may have to recheck them.

If they screw around again, they can shove the M2 as well.

I'm totally shocked at 12%+ that's total bandit pricing.

Thanks to OP posting, I really need to recheck the shiesters.

Edited by jamiedimonBTClover on Friday 4th November 19:36

[bitchstewie]

MitchT said:

Four year old BMW 440i at a main dealer. Not a rare spec...

[MitchT]

Puzzles said:

Is that a new or used bmw? Either way that interest rate is crazy

As I said in my post, four years old.

Rates are usually better on new ones, but the configurator doesn't seem to indicate finance rates so I can't say how they compare.

[Jordie Barretts sock]

Try your 'personal' finance quote on Cazoo.

Ridiculous APR on a year or so old Corolla estate hybrid.

[Mark83]

Just seen 13.9% on a BMW Approved Used M5.

A fool and his money...

[Edible Roadkill]

Getting back to how things used to be, customers won’t like this.

A friend works for a major national house builder, enquiry’s have halved and a lot of withdrawals.

I think this is only the start of what’s to come.

[valiant]

Audi is the same. 13.9% apr for used pcp. (Although two free services are chucked in).

Already expensive used cars just got more expensive…

[Phooey]

Not really surprising rates have increased - the free money has gone.

I’m expecting a return to somewhere back in the days when (non-subsidied) finance was double digits and cars lost money. Whilst the recent strength of car prices and retained equity has been a gift, we need to realise that demand will soften, availability will catch up, and buyers will pay more - whether that’s in depreciation or borrowing costs. Or both.

[Eatpies99]

I was in Ferrari Leeds couple of weeks back (not buying), the secondhand cars were been offered at 8.2%. Wondering what they'll be at now....