As mentioned before I got my Mercedes E Estate on a Personal Hire Arrangement at £550/month. 3 months payments up front and then 23 more over 2 years, then hand it back and walk off. So a £76k car new for two years cost £14,300. Rather a lot less than it would have to buy and sell.
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The owner came back and said he had purchased it from an MB dealer for £42k.
A good bargain both for you and the second owner - and that's exactly why I can't see that the business model is sustainable. There was £56k, not £75k, of customer value in the car, and to realise that value MB has to design, manufacture, market the thing and run a finance operation and a dealership and a commercial relationship with BCA.
My point is that either MB can build these cars for way, way less than £56k (In which case why are they pitching the ticket price so high?) or it's not going to be sustainable in the long-term.
I really hope the PCP bubble doesn't burst the way that PPI did, but at the moment the signs are all there, and unlike the banks I'm not entirely sure the motor manufacturers will be able to survive it so easily...
https://www.ft.com/content/0e651206-0ee1-11e7-a88c-50ba212dce4d
