That's most likely because people like the fixed fee, to just drive. No big bills etc.
This is a false benefit though, no bills is a new car benefit not a PCP benefit. Whereas a PCP on a used car could well give you big bills.
That's most likely because people like the fixed fee, to just drive. No big bills etc.
This is a false benefit though, no bills is a new car benefit not a PCP benefit. Whereas a PCP on a used car could well give you big bills.
I was talking about a lease/pcp on a new car sorry.
Which is the same benefit as paying cash, too. It's a benefit of a new car not a benefit of a particular way of funding.
We are talking about why 80% of people now lease/pcp.
The old way of finance used to be HP though, which was also monthly payments.I think the reason is because monthly payments are easier for people to get their head round. Same thing happens with mobile phones "it's only £50pm for the latest phone", but if you asked them to pay £800 in one go.. no thanks Jeff.
I don't like finance either but it's not like ownership isn't a monthly expense - your car loses value each month, just because you don't need to physically find that money every month doesn't mean it isn't a cost.
Having a car for 3 years has a cost whether you've bought it or hired it. It's typically cheaper to buy but you've got 'nothing to show' for 3 years of depreciation either.
Yeah I got a good trade in deal for my 2008 330d touring (11.8K) and a great price when I bought a 2013 530D Touring (23K)
In two years of ownership though I've put 25K miles on it, I've had to spend money on the air suspension, bought 3 new tyres due to punctures and the car has probably dropped another 6-7K in value?
Whereas with the 330D I ended up losing less than £1000 after doing 50,000 miles.
Ok here's my example, I bought a B Class 3 yrs old for £12.5k. Brand new it was £25k I believe. So if id have leased it I think it would have been around £250-300pm and £2.5k initial fee.
So that's say £3-3.6k per year plus £2.5k. So that's £13.3k overall. When if you wait 3 years you can spend that on an asset that is worth something.
Perhaps its just me but I like to wait a few years and then pay what I would have for a brand new one. Mind it may have been facelifted by then. Which it actually has in my instance
That makes no sense at all as the cost is an integral factor in choosing which car you go for.
You'd rather have a 5-series than an A6 but, if the latter was available for a third of the price, you'd get the car you "don't want".
This rule can work if the prices of the cars to which you've narrowed your choice are all very similar but, as a general principle, it doesn't hold.