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RCZ Crash

Frog face

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Yep the Dealer Network's are controlling the market certainly for cars up to 5 years of age linked into PCP as 9/10 customers never ever make the balloon payment.

I am a bit jaded as I just don't see the point in PCP deals and renting a new car for 3 odd years paying literally £000s and having absolutely nothing to show for it or maybe even negative equity depending on who the PCP was financed through, save for swanning around in a new car that belies the fact it is 'unaffordable' especially given the disparity for most between wages and new car prices; each to their own but makes no financial sense........ Chris Harris did a nice piece Chris Harris on... car finance.

Or most people see a car as a 'white good' (or phallus waving) a generic box that is essential, when it breaks they get another (no repairs), no fun to drive or own and it matches or try's to better the other boxes in their area and social circle
Interesting article now I see what your getting at , iv never gone down that route mine is bought an paid for I can’t afford 30 40 50 thousand pound cars so I bought what I could afford at the time
 

Kerr

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The one thing that stands out a mile is the amount of people who sign up to finance deals and have zero understanding of them. People look at it as a monthly payment, but ignore the total cost and the fact it's a substantial amount of debt.

To get a mortgage these days requires lots of affordability checks and a substantial deposit. That's for something that should at least hold its value. To get an expensive car on PCP, worth double your salary, you need to be able to sign your name. It's reckless lending.

Lots of people still expect that their car will have lots of equity in it when they are ready to change. They are shocked when they are deep in negative equity until late on in their finance deal.

For years the prices of cars was staying quite stable. The new models didn't seem to be much more than the outgoing one. Now the prices of cars are much higher. They've got so many people stuck on reoccurring finance deals and now they are draining them.

You are up to £38k for something like and Audi S3 or BMW M135i starting price. The previous M140i started at under £32k. Yes the new one has an auto as standard and 4wd, but you are losing the best reason to buy a BMW. A 6 cylinder engine.

Cars are just getting too expensive for everyone.
 
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