My understanding is that when they "rent them out" they're underwritten by financial institutions and the manufacturers aren't taking a hit.
Since almost no-one buys anything for cash any more it's probably just an extension of every other type of credit.
Mercedes sales increased by 11% in 2016.
It's a fact that the public demand ever more creature comforts and technology on their cars. It's heading the same way as the mobile phone - anyone remember when you used them to make calls ?
Poor choice of words on my part. The 'hit' is that the returned vehicles have a much higher book value than true market value. There are enormous stocks of returned PCP vehicles on airfields all over the UK, the manufacturers are strictly controlling the rate at which they are being returned to the market.
My colleague has just bought an ex-PCP Mercedes, 9,000 miles, full MB service history, 4 years old for just over half the list price. The thing is indistinguishable from a new car.
This cannot be a sustainable business model in the long term.
