Ask a car salesman anything...anything at all.

[JimmyConwayNW]

RobinBanks said:

Speaking to a LR sales manager he was saying RRs are well underwater at end of term and it’s really affecting their secondhand stock as customers are handing back rather than trading in.

They have took an absolute hammering recently, I bought my own at trade price, PCP dealed myself on it at 4.9% APR low mileage term knowing I should be able to retail out of it having always made profit or worst case broke even on my own cars and this ones going to be a hit.

Unless its an SVR and that changes things.

[JimmyConwayNW]

dme123 said:

I bought an MX5 as the last hurrah of the high revving NASP roadster, with the intention of keeping it forever. Perfect choice for a man with three children

We once sold an MX5 with delivery to London. On arrival they all come outside delighted with the new 'sportscar' and are over the moon.

Deadly serious the man then says where are the rear 2 seats do they fold out? Delivery guy says hahaha very good. They are totally serious.

He thought it was a 4 seater. Bizarre.

[V12GT]

JimmyConwayNW said:

We once sold an MX5 with delivery to London. On arrival they all come outside delighted with the new 'sportscar' and are over the moon.

Deadly serious the man then says where are the rear 2 seats do they fold out? Delivery guy says hahaha very good. They are totally serious.

He thought it was a 4 seater. Bizarre.

So that’s got me thinking: do you often get people who are clueless about what they are buying? As if they’ve not spent any time doing their research?

I’m thinking maybe not 2 vs 4 seats but whether it’s petrol or diesel, 4WD or FWD etc...

[Truckosaurus]

V12GT said:

...people who are clueless about what they are buying? ....4WD or FWD etc...

I bet there are a huge number of people with 2WD SUVs that think they drive a "4x4" .

[JimmyConwayNW]

V12GT said:

So that’s got me thinking: do you often get people who are clueless about what they are buying? As if they’ve not spent any time doing their research?

I’m thinking maybe not 2 vs 4 seats but whether it’s petrol or diesel, 4WD or FWD etc...

Not often, and the people that turn up without a clue don't tend to be buyers just time wasters asking daft questions if they had spent 5 minutes reviewing our website / adverts they would know.
On occasion, some people simply don't know or care its just transport.

[SpeckledJim]

dme123 said:

I bought an MX5 as the last hurrah of the high revving NASP roadster, with the intention of keeping it forever. Perfect choice for a man with three children

Well, yes.

I mean, you've got a favourite, haven't you!?

[Flibble]

SpeckledJim said:

dme123 said:

I bought an MX5 as the last hurrah of the high revving NASP roadster, with the intention of keeping it forever. Perfect choice for a man with three children

Well, yes.

I mean, you've got a favourite, haven't you!?

[syl]

RobinBanks said:

PositronicRay said:

RobinBanks said:

Speaking to a LR sales manager he was saying RRs are well underwater at end of term and it’s really affecting their secondhand stock as customers are handing back rather than trading in.

LR will just put them though a closed dealer auction, stock will be bought @ market value.

Ask any (well most) BMs a question, any question, and they're programmed to say PCP.

Of course they can buy at closed auction but retaining customers is more difficult once they are free to choose from the whole market and customers with cars that are thousands underwater with months still to run tend to get a bit pessimistic about buying from the same marque.

They've benefitted from their PCP - the alternative would have been a lower GMFV and a larger monthly payment. If they can get the same deal again on a new one, they'll potentially be quids in!

My wife has a RR that's coming to the end of it's PCP. It's slightly under GMFV on trade-in, so if she decides to get a new one then we will probably be better off financially to hand it back (depending on how much they might charge for any chips/scuffs). If she decides to keep it, we will be better off paying the GMFV than we would to just buy a different one of the same age, as the dealers seem to put about £5k+ margin into them when they stick them on the forecourt.

[Sheepshanks]

syl said:

My wife has a RR that's coming to the end of it's PCP. It's slightly under GMFV on trade-in, so if she decides to get a new one then we will probably be better off financially to hand it back...

What you'd expect (with any brand) is there's be some sort of incentive to support the value of your current car so as to make it "easier" to stay with the brand. That's the whole point of PCP, as far as manufacturers are concerned.

Once you're handing the car back, the tie is broken and you may well wander off and buy something else.

[lornemalvo]

dme123 said:

Similar experience here. There is so little out there that I'd look at and think "I'm really glad I spent £25,000 on that". I bought a brand new XC60 3.5 years ago for £35k odd which is in the hands of ex-wife; every time I drive it I'm astonished that these things are objects of desire for so many people.

I bought an MX5 as the last hurrah of the high revving NASP roadster, with the intention of keeping it forever. Perfect choice for a man with three children

Funny you should say that, my wife's brother in law has a 2011 XC60 he's had from new. In many ways one of these would suit me down to the ground, but I took one for a drive, a T5 I think and couldn't wait to get back to the showroom, I thought it was beyond dull, hated the steering etc. i really wanted to like it but it was not to be. I had a mk 2 MX% as a weekend car but corrosion was killing it. It was a brilliant car though, how they combined handling like that with such a brilliant ride I'll never know. It put the Mazda 6 on my radar as a possibility, I like the look of them but I've heard horror stories about engines blowing up, oil in the water etc., so I'm doing some more research

[Blakewater]

Is PCH the same as PCP?

This is something my local Audi dealer has just advertised for pre reg Audi A4s that they seem keen to shift this quarter. They're not saying in the ad what the APR is.

https://www.swanswaygarages.com/audi/new-offers/a4...

[R.Sole]

Blakewater said:

Is PCH the same as PCP?

This is something my local Audi dealer has just advertised for pre reg Audi A4s that they seem keen to shift this quarter. They're not saying in the ad what the APR is.

https://www.swanswaygarages.com/audi/new-offers/a4...

No apr on a lease.

[Flibble]

Blakewater said:

Is PCH the same as PCP?

This is something my local Audi dealer has just advertised for pre reg Audi A4s that they seem keen to shift this quarter. They're not saying in the ad what the APR is.

https://www.swanswaygarages.com/audi/new-offers/a4...

The H stands for hire. It's a straight up rental agreement.

[HTP99]

R.Sole said:

Blakewater said:

Is PCH the same as PCP?

This is something my local Audi dealer has just advertised for pre reg Audi A4s that they seem keen to shift this quarter. They're not saying in the ad what the APR is.

https://www.swanswaygarages.com/audi/new-offers/a4...

No apr on a lease.

You do pay interest on the agreement though.

[Djtemeka]

lornemalvo said:

Funny you should say that, my wife's brother in law has a 2011 XC60 he's had from new. In many ways one of these would suit me down to the ground, but I took one for a drive, a T5 I think and couldn't wait to get back to the showroom, I thought it was beyond dull, hated the steering etc. i really wanted to like it but it was not to be. I had a mk 2 MX% as a weekend car but corrosion was killing it. It was a brilliant car though, how they combined handling like that with such a brilliant ride I'll never know. It put the Mazda 6 on my radar as a possibility, I like the look of them but I've heard horror stories about engines blowing up, oil in the water etc., so I'm doing some more research

We’ve had a 2012 2.2d Mazda 6 for 3 or 4 years now. 80k miles. No issues. No dpf sagas. London driving with a weekly blast down the motorway. Just drive them hard to keep the exhaust hot. Utterly boring cars though.

[Wooda80]

Sheepshanks said:

What you'd expect (with any brand) is there's be some sort of incentive to support the value of your current car so as to make it "easier" to stay with the brand. That's the whole point of PCP, as far as manufacturers are concerned.

Once you're handing the car back, the tie is broken and you may well wander off and buy something else.

Not sure I follow your logic on that.

PCP and finance in general is useful to the manufacturers as a marketing tool as it gives them a whole different spectrum of things about which to market to you ( finance offers as well product news, changing for the same monthly payment etc ), but it still relies on the customer engaging with the dealer to renew.

Even if you have equity in the car you can just as easily wander off and realise that equity at whichever make you choose next.

ETA - As syl said, if the car is in negative equity at the end then the buyer has actually benefitted from monthly payments that were lower than they should have been to fully pay down the depreciation.

Edited by Wooda80 on Tuesday 23 July 07:16

[Fast Bug]

Blakewater said:

Is PCH the same as PCP?

This is something my local Audi dealer has just advertised for pre reg Audi A4s that they seem keen to shift this quarter. They're not saying in the ad what the APR is.

https://www.swanswaygarages.com/audi/new-offers/a4...

£1000 less initial rental and £22pcm cheaper here

https://leasing.com/main-dealers/eastbourne-audi/a...

Leasing can be cheaper, but it's hard (expensive) to get out of an agreement if your circumstances change

[lornemalvo]

lornemalvo said:

Funny you should say that, my wife's brother in law has a 2011 XC60 he's had from new. In many ways one of these would suit me down to the ground, but I took one for a drive, a T5 I think and couldn't wait to get back to the showroom, I thought it was beyond dull, hated the steering etc. i really wanted to like it but it was not to be. I had a mk 2 MX% as a weekend car but corrosion was killing it. It was a brilliant car though, how they combined handling like that with such a brilliant ride I'll never know. It put the Mazda 6 on my radar as a possibility, I like the look of them but I've heard horror stories about engines blowing up, oil in the water etc., so I'm doing some more research

Edit - it was a D5 not a T5

[4941cc]

Blakewater said:

Is PCH the same as PCP?

No, one is a straightforward hire with no option to purchase at the end, the other is a form, of hire purchase contract, so there is the option to purchase/benefit from equity built in.

[silentbrown]

HTP99 said:

You do pay interest on the agreement though.

??? Yes and no. It's like renting a house, or spending a night in a hotel. Someone's probably taken out a loan to buy the house/build the hotel, and they may be relying on your payments to cover the interest, but that's as far as it goes.