New car sales 75% via PCP
Discussion
powerstroke said:
Large numbers of People have given up the idea pay for and you own a car outright and are happy to rent it over 3 years or whatever ,making one payment per month and not having any unexpected bills , second hand will get cheaper white goods cars exported or scrapped , as more people take it up
in the end the cost will be passed on to the user so if you have a bog standard audi and its 15k list and worth 3 k at the end of your contract the payments will be worked out to cover the depreciation + profit for the lease co ... the lower the residual value the more you will have to pay ...
Exactly.in the end the cost will be passed on to the user so if you have a bog standard audi and its 15k list and worth 3 k at the end of your contract the payments will be worked out to cover the depreciation + profit for the lease co ... the lower the residual value the more you will have to pay ...
walm said:
...
I suspect the likely outcome will be a dramatic drop in new car volumes as hinted at by SMMT today.
I strongly suspect much of the big ticket market is saturated in Europe... I suspect the likely outcome will be a dramatic drop in new car volumes as hinted at by SMMT today.
All the more reason for focusing on dealings outside of it, getting trade deals in place with nations with some slack (and not being complacent about the industries we focus on)
KTF said:
If you had 100k, why would you put it all in a depreciating asset when you can put a small amount towards the car and invest (or whatever) the rest to offset the interest?
I recently bought a pre-reg BMW with 17 miles on the clock, I paid 47% of its list price, I bought it cash, to lease it would have cost me about 30% and no car at the end What will happen is that manufacturer margins on new cars will be depressed due to the shift of selling to finance houses meaning more volume is required, this filters down to RVs forcing them down which in turn increase lease monthlies. Cars 5+ years old become scrap value. It is then interesting to see what happens, does the punter absorb higher prices or do the manufacturers further discount further perpetuating the problem.
As for the comments on Range Rovers, seriously, did anyone not realise that buyers of new and nearly news Range Rovers aren't financed to the hilt?
As for the comments on Range Rovers, seriously, did anyone not realise that buyers of new and nearly news Range Rovers aren't financed to the hilt?
Adrian W said:
KTF said:
If you had 100k, why would you put it all in a depreciating asset when you can put a small amount towards the car and invest (or whatever) the rest to offset the interest?
I recently bought a pre-reg BMW with 17 miles on the clock, I paid 47% of its list price, I bought it cash, to lease it would have cost me about 30% and no car at the end Adrian W said:
I recently bought a pre-reg BMW with 17 miles on the clock, I paid 47% of its list price, I bought it cash, to lease it would have cost me about 30% and no car at the end
I guess you'll need to see what residuals are like in 3 or 4yrs to really know if you made the right move Will it still have 17% left in it? Will any overage on that be worth having to deal with peasants if you sell it etc
ks I hadn't thought of that one :-) KTF said:
Digga said:
I'd always niavely assumed that if you had a Range Rover, you had money - either cash or a modest HP loan - but clearly, given the sheer numbers of the things (and many of those parked outside very modest properties), I was way wrong.
If you had 100k, why would you put it all in a depreciating asset when you can put a small amount towards the car and invest (or whatever) the rest to offset the interest?Adrian W said:
Its a time bomb, I have seen cars where the total lease cost is less than the depreciation of the car, irrelevant of what the lease company actually paid for it, places like Bruntingthorp are filled to capacity with lease returns, if they dump them on to the used market it will either destroy it or dramatically effect new car sales.
I still believe that this will be the next big finance scandal, those that work in finance on here have said its rubbish (but they would) but I believe it will transpire that there is a gap between the actual value of returned lease cars and the asset value on the lease companies books, it cant be sustainable.
Yep - I've heard just one large finance co has around 4,000+ in storage there.I still believe that this will be the next big finance scandal, those that work in finance on here have said its rubbish (but they would) but I believe it will transpire that there is a gap between the actual value of returned lease cars and the asset value on the lease companies books, it cant be sustainable.
johnfm said:
Adrian W said:
Its a time bomb, I have seen cars where the total lease cost is less than the depreciation of the car, irrelevant of what the lease company actually paid for it, places like Bruntingthorp are filled to capacity with lease returns, if they dump them on to the used market it will either destroy it or dramatically effect new car sales.
I still believe that this will be the next big finance scandal, those that work in finance on here have said its rubbish (but they would) but I believe it will transpire that there is a gap between the actual value of returned lease cars and the asset value on the lease companies books, it cant be sustainable.
Yep - I've heard just one large finance co has around 4,000+ in storage there.I still believe that this will be the next big finance scandal, those that work in finance on here have said its rubbish (but they would) but I believe it will transpire that there is a gap between the actual value of returned lease cars and the asset value on the lease companies books, it cant be sustainable.
Digga said:
I had my eyes opened to this a few years back looking at new Range Rovers, whilst waiting for my Defender to come out of the service bay at my local Land Rover stealer. The balloon finance schemes on a £100k ish car are eyewatering, but talking to the salesman, they're the most common way of getting into one. I'd always niavely assumed that if you had a Range Rover, you had money - either cash or a modest HP loan - but clearly, given the sheer numbers of the things (and many of those parked outside very modest properties), I was way wrong.
Hmmm...someone on here, who had worked as a LandRover salesman, said the vast majority of FFRRs are bought cash. Evoques, on the other hand, were almost always on finance.Digga said:
ThunderGuts said:
johnfm said:
Yep - I've heard just one large finance co has around 4,000+ in storage there.
Sounds like unsustainable (for the Co) balance sheet management, holding a weakening asset back.crikey.. I Bet someones made some serious money of that movement!
SystemParanoia said:
Digga said:
ThunderGuts said:
johnfm said:
Yep - I've heard just one large finance co has around 4,000+ in storage there.
Sounds like unsustainable (for the Co) balance sheet management, holding a weakening asset back.crikey.. I Bet someones made some serious money of that movement!
Adrian W said:
I recently bought a pre-reg BMW with 17 miles on the clock, I paid 47% of its list price, I bought it cash, to lease it would have cost me about 30% and no car at the end
Care to share where you found this kind of deal? By PM if you don't want to post it as I've been trying to find out more on getting a pre-registered car and have found it tricky to get information on where to find the best deals.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff