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.
Rocksolid,
From your contacts in the Industry, do you hear about there been less companies offering these low rates of interest on car purchases or is ita case of the manufacturers will do anything for sales.
If they screw up finance companies or the value of second hand stock at their dealers, then that is a just collateral damage to keep the manufacturer selling cars.
