A PCP is just a financing method of facilitating renting a car over a fixed period eg 3 years as opposed to outright ownership. What is fundamentally different is that a PCP has an automatic trigger at the end of the contract length, which creates a future fixed decision point, which otherwise may not occur during an outright ownership arrangement.
That is do you keep or replace with a new car on PCP, from Morgan's perspective they hope it triggers a new Morgan car (as they have stated the only competition is their own cars in the market place) this assumes that considerations like the reliability issues remain firmly a thing of the past. If they do not, (add in availability of spares and lead times for supply to support aging CX cars) it may lead to the second hand market becoming flooded with cars once they come out of PCP or the new car warranty period.
It would be interesting to understand how many CX cars on the second hand market are ex PCP cars and how many are outright purchased cars and whether those cars were replaced with a new Morgan.
Traditionally continuous new year model update releases often undermine the relative resale values. We may also see a marked price differential, between the early CX's without eg comfort seats ,other considerations eg will pre traction control cars become more or less attractive than the later updated models over time. Having said that if new Morgan production volume remains relatively fixed and is geared to satisfy overseas markets and therefore UK supply becomes more restricted, could we see a resurgence in resale values post the current malaise/ recession..It will be interesting to see the average length of ownership of CX model cars compared with trads.
