What’s the agreed value at the end of the PCP if it’s lost £32k in 18mths? I can’t see how PCP is sustainable, the market is now so flooded with 3-4yr old low mileage used examples that there are disused airfields full of cars that are worth less than their pcp return value, it has to have an affect on the market value hitting depreciation hard and therefore the pcp monthly payments, soon it will be almost as cheap to buy the car on HP than PCP, and at the end of it you’ve got an asset you own? I think that has yet to hit the bike market with the same sort of impact but it’s coming. I think what manufacturers will and are doing to combat that is just inflate the price of the vehicle to start with? It wasn’t that long ago when I used to be able to go into a dealers with my 3yr old bought and paid for bike and ride out on a new one on another 3yr HP deal for little more than £100mth. Not anymore.
My mates V4s with 4K miles on it was for sale for over a year, at first in a prestige showroom, then on eBay. It got down to £17k with no serious interest and in the end he traded it in, not sure how for but I think it may have been less than he was letting on? just not sure people are prepared to lump £15-20k on a used bike “sold as seen” I certainly wouldn’t?
About 20k. I looked at pre reg and nearly new when I bought this, and all were 35-43k. I paid 39 brand new, so figured not an issue. Then govt announced on fielded being bad, and the annual tax on this went for about £300 to nearly £500. Ins is a bit of a killer too, £600 plus. It cost sismilr to an m4 in all but fuel to run But it’s quick. Like supercar 15 yrs ago quick. 0-60 sub 5 seconds, it’s mid range overtakes it like riding a lower powered motorbike. It flies. Handles like a cruise ship tho lol
Sounds like it backs up my theory of manufacturers inflating the value if you got yours for £13k below list price? I had an old 123d which I had remapped, it was great fun to drive and quick too, far more entertaining to drive than the mrs 3.0 SLK, and would return 35 mpg more all day long, but I wasn’t using it and hers did 15mpg at best so we chopped them both in for a 420i
It was part dealer and part finance funded to clear old stock. I’m a bit stuck now tho, I fancy changing as it’s not really needed now and I quite fancy a VW camper thing and use that and the 911 as daily drivers depending on journey. But it will cosy me at least 8k to get out, there’s 2 1/2yrs left at 4800 pa pcp cost so cheaper (almost) to leave on the drive and not use until hand back time.
Other side of the story ... I’m in a position to buy a v4 cash... I am caught between a R and the base ie mechanical suspension I have rt ohlins forks and mag wheels and would get a rt ohlins shock I want a bargain and am prepared to Make a low cash offer and walk away To the next one ... that’s life!
Are you sure these are used cars and not new cars? I can't see how the finance company would have a used car sit in an airfield, better to sell it through the trade or auction house and realise the cash than have a continually depreciating asset sit there, even if it means taking a hit on the delta between the residual and market. The longer it sits the bigger the hit. PCP will always be with us as the manufacturers have billions invested in production lines which they need to keep running and producing vehicles. The finance arm of the manufacture is a separate entity that cost, compared to a production line, nothing to set up or run. It can keep buying the cars off the production line all day long because it's not real money, it's all funded by debt.
So I was told, the company I work for recruit through Manpower, take them on a temp contract and then if they turn out alright they are taken on, anyhow a mate of his who he know though Manpower was parking up used Merc’s in a field, apparently returned pcp cars worth less than their agreed value? Maybe they’re just stored there until sold through the dealer used network? But he said he just could believe how many there were, and with that many in stock it can only lower the used Value even further as supply outstrips demand? Which mean when you go for your next pcp deal the monthly cost gets greater every time as the depreciation grows?
