I was at a Subaru dealer, who had been offered a £65k Audi list when new at one year old as a trade as the owner "did not like the car". The Subaru dealer phoned an Audi Dealer they deal with and asked them if they wanted the car at that price as they were unsure of retailing it.
The Audi dealer said with the PCP offers they had on that model at that moment that as you said Joe, the HP payments on the second hand car would be more than th PCP payments for a new car and the up front deposit would be higher for the second hand car.
In the Audi dealers opinion the punters would want a new car on PCP. Therefore they did not want the car and the Subaru dealer in the end said they were not interested in the car as a trade in.
I have no problem with PCP or any other form of credit if it is competitive and like Peter we took out a 3% loan via Sainsburys Bank as the other way to get the money was to take it out of my company and pay 40% tax on the lump sum rather than pay the monthly payments out of our salry within the 20% tax band.
In that case the interest was a lower cost than paying the extra tax at40% tax.
I have also seen friends who are not well off who basically could afford a £12k car doing PCP on a £22k car and I do not think all the people who I see in Range Rovers and BMW X5's all have a large disposable income but if every one was like me it would be boring big time!!!!!!
