When the finance is provided by the subsidiary of the manufacturer I can't see it drying up.
Selling Gap and other expensive add ons needs to be better controlled. The sales people make more commission on the insurance products than they do on selling the car, which is bonkers.
My experience buying the A35 was that I got additional "dealer contribution support" = discount, by taking a PCP deal, and the Gap and wheel insurance was essentially free.
Two months after taking out the finance I paid it off, with no penalty.
I got a better deal than I would if I'd insisted on paying cash, at the cost of 2 months interest charges.
I also got 3 year free servicing, again, only because I took put a PCP contract.
So I don't have an issue with it.
But I do wonder about the business model Mercedes are using. The sales person told me that about 50% of PCP plans are terminated early, the rest are people who change their cars regularly.
