Manufacturers like PCP and PCH because it obscures the price of a vehicle ,it camouflages heavy discounting and distress selling, this is particularly true of premium brands. One of the biggest problems is that buyers estimate their mileage when taking out a contract so you get a lower monthly payment if you low ball that number. It eventually comes home to roost when it comes to the contract end. I was a director of the UK’s largest leasing company and we white labelled some of the big manufacturers ,finance companies take some huge risks which they often don’t fully understand at the behest of thé manufactures.
