PCPs - will they ever impact used car values?
I keep reading of the ever growing sales of new cars, in particularly funded via PCP by manufacturers. At what point do you think this glut of new cars will start to impact second hand car values when they start hitting the market?
Asked on 22 January 2016 by briscs
Answered by
Honest John
What do you mean, "start"? PCPs have been around for 20 years in the UK and 30 years in the USA. It has long been the most common way a car was sold to a private buyer in the USA, and now also is in the UK.
Some manufacturers deliberately undervalue the residual to give buyers equity for the next PCP. Others overvalue the residuals, leaving buyers with no equity, then offer a £1k-£4k 'contribution' to the next PCP to keep the system working. They both amount to the same thing.
Some manufacturers deliberately undervalue the residual to give buyers equity for the next PCP. Others overvalue the residuals, leaving buyers with no equity, then offer a £1k-£4k 'contribution' to the next PCP to keep the system working. They both amount to the same thing.
Tags:
buying a new car
pcp
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