1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

V4 Pcp Equity?

Discussion in 'Panigale' started by flatstick959, Feb 16, 2021.

  1. My take in it is that if you don’t absolutely have to have the latest and greatest then buy a used low mile bike - as proven by depreciation figures quoted here - after 2 or 3 years a large chunk of depreciation already gone by then and there’s always loads of garage queens around being sold privately.

    If you don’t have the cash to hand, private finance us usually available with better interest rates than the average pcp deal and at the end of it all you have an asset that won’t depreciate anywhere near as quickly as a new bike as it all slows down pretty rapidly once that initial hit has been taken.
     
    • Like Like x 1
    • Agree Agree x 1
  2. I’m sure that’s the case with some, especially full price, high interest rate rams like ducati.

    mine was 54k list, 14k discounts (!) and contributions from bmw, 2k from me plus 18k or so over 4 yrs all 0%. Total loss for bmw. Has to be. But it shifts surplus stock
     
  3. Btw I’ve not yet found a dealer who will take 4k never mind 14k plus on a credit card. Unless you start paying a 2% or more card fee for them.
     
    #103 bradders, Feb 18, 2021
    Last edited: Feb 19, 2021
  4. Ackers you are right... but new prices are also rising because of the increased tech and complexity in the car... some to meet legislation and some because that is the way the market is going.

    30 years ago - lucky to have central locking, power steering and electric windows.

    Now base model has all that plus airbags, AC, Highend Radio, Apple Carplay, Traction control, bla bla bla.....

    Those things drive up price.

    Look at a 1970 Cortina or Escort... Box, 4 road wheels, some basic seats, 1.6 engine...

    Things change... so has the purchasing model...

    The PCP model will change - with lower back end residuals..... they already moved from 2 and 3 year agreements to now be 3 and 4 year agreements...

    The finance companies are stuck with the loss..on negative equity... but they will recover by charging higher interest.

    With the likes of VW finance.... its just where they shift the profit in the deal... higher front end price ... more interest and profit... then 3 years later a loss before the second hand sale.
     
  5. Bradders they legally can not charge you any more....... but I know some do by amending the Sales Price...
     
  6. The car industry has been ‘dying’ for some time now. It can’t just be blamed on covid.

    All this talk of banning combustion engine sales etc has caused a mass drop in confidence in the market. If you sit and think about it, it wouldn’t be the most sensible idea to buy an expensive vehicle outright at the moment would it.

    It “could” end up worthless !
     
    #106 Advikaz, Feb 19, 2021
    Last edited: Feb 19, 2021
    • Like Like x 2
    • Agree Agree x 1
  7. I don't think there is much doubt the car market has peaked and is now on a downward trend.
    Combustion engine vehicles will be banned from city centres by the end of this decade if not sooner and locally they are talking of and planning more cycle paths and wider pavements completely separated from the roads. In urban areas the car has a very limited outlook ahead.
     
    • Agree Agree x 1
  8. But much more of a worry for your mate with the Lambo than Nissan drivers!
     
    • Agree Agree x 1

  9. Agreed. I know a few like him. Some understand that the world is changing and comprehend the effect this inevitably has on the market. Others are in pure denial and are still buying cars up as investments.

    Maybe it’ll work out for them.. I suspect not
     
    • Agree Agree x 1
  10. Easy to say that the urban areas will become traffic free zones. The UK for example now has 20% of its population over 65 years old, & this is predicted to rise steadily. Hard to imagine that perhaps a quarter of the population will accept not being able to get around easily at will, especially in the winter months. Most 70 year olds are not going to the zoo and McDonalds with the grand kids on a bike!
     
  11. I agree, investment vehicles will be the really rare exotic & special ones, everything else will end up left in sheds, rotting away until maybe there are so few of them that they are really rare too. Maybe.
     
  12. That isn't quite what i said though.

    I said combustion engined vehicles will be banned, i still personally believe that electric driverless taxis will be the norm in urban areas in the not too distant future.
     
  13. But they don’t have to take card either for such large sums. And I have never found one who will.
    I often see this ‘get 0% card to finance’ but would love to know of dealers, cars or bikes, who would take 24k on a card
     
  14. There was an interesting “Tonight” programme on the future of electric vehicles on itv last night.
     
  15. A few years ago I did pay £10k on my card to a Mercedes dealership in Derby for SWMBO’s SLK .
     
  16. How many? And how did you convince them - was that the total value or were you also sticking 40k on cash or finance?
     
  17. About 7-8 years ago and it was an ex demo car. It was a top up on the car she was p/x’ing in a ‘cash deal’ so to speak. I didn’t have to convince them, they just took it.

    ps. It was Inchcape in Derby.
     
  18. Sorry if I misunderstood.
     
    • Like Like x 1
  19. One of the things that I think I happening is that there is less loyalty to BMW, Audi and MB, more people buying significantly cheaper Kia, Hyundai etc ? I’ve just looked at what Audi are doing on a 3 yr old Q5. A main dealer has a 2017 S line, 25 k miles, £28k screen price, on their PCP deal it’s costing nearly £20 over 3 yrs ! £2k down and £500 a month to rent a 4 yr old motor ! That ones gonna be on its way to the airfield shortly !
     
  20. Someone I know purchased a 38k golf r on a credit card direct from Vw about 3/4years back
     
Do Not Sell My Personal Information