On YouTube, I am lazy and just watch what comes up. This guy and his channel confounds me: 'JayEmm on Cars'. The gig seems to be is that you buy supercars (like McLaren, Porshe, Ferrari, etc) on PCP and you never make the final payment but just give the car back. If you choose the right car then residuals are quite high making PCP relatively cheap. Do people really do this?
Yes, you don't worry about paying £2000 per month plus £6000 per year for extended warranty and servicing I don't get it. If you really are minted up then why not just buy the car - or get a normal loan? You can always sell after (say) two years and pay back the loan.
You can guarantee that the finance companies and the car dealers are making good money out of it (otherwise they wouldn't be doing it) so it is difficult to see how the customer really benefits...
They are available on Ducati's too. I could have taken a brand new Multi for around a hundred quid a month ....it meant handing back or paying around 7.5k down the line though. I dont see it as a usable method, but some will
There are some where they give you so much on a trade in as a deposit that it could be rude not to and the residual is much higher than the ballon. But you have to be lucky - friend did it on a BMW - PCP on a used vehicle that is
A lot of business owners just like to get 'into' a GT3 or a lambo or a fezza or whatever. Itch scratched and all that. They know they're not buying it or keeping it. Basically hiring it. PCP facilitates flipping from one supercar to another. If you have a cashflow of say 8k per month then 2k per month on the lambo or whatever is quite doable. So they do it....
Well check out this young chappie , who I came across after watching "JayEmm on Cars " He shells out fifteen bag a month on finance payments ! I warmed to him straight away .... must invite him around for drinks . BTW - guess what his job is
So the logic is that you are better off buying (or not 'buying') these cars on finance rather than paying cash (assuming that you have cash - and all of the YouTube 'stars' do have the cash just lying around) to keep cash invested. The fact that lending rates are always much greater than investment rates is irrelevant - or just wrong. Funny that I have got it wrong all of my life and not realised that I would be better of borrowing money to invest in a depreciating asset. Youtube has the answers! ... not!
You and me both fella ! The root of the problem comes down to two words .... " Quantitative Easing " The financial world is a very sick puppy . Global debt is three times bigger than global productivity , and it's getting larger every day ..... does that make any kind of sense at all ? Not to me it doesn't ....
