The FSA is, already, concerned about the car finance industry.
It has the potential to be the next financial problem.
Car sales are not under the control of the FSA.
For how long?
PCP is simply wrong. When I bough my late 2008 MB car in 2015 for less than £10k it was "cheaper" to buy it on a PCP than HP, even though I intended to buy it at the end of the PCP. Which I have done.
Why?
A dealer "incentive".
I ran a proper 5 year DCF on the deal, including buying the car out after 2 years.
Compared with HP at almost credit card rates, the MB PCP cost less however measured.
Why?
I still don't understand.
Base rate is effectively insignificant.
Companies like MB can borrow at close to zero %.
They charge 4 to 7% on PCPs, yet on simple HP the rates are closer to 10%.
I can only assume that there is a hidden agenda.
Now Morgan is following.
