Sunday 25 August 2019

How even poshest of cars are now in on PCP act

When you buy a car on a PCP you are essentially paying to use it for a fixed number of years
When you buy a car on a PCP you are essentially paying to use it for a fixed number of years
Eddie Cunningham

Eddie Cunningham

You know for sure that PCPs have well and truly arrived when you hear that people are doing deals for some really high-end cars.

We're talking 'big' vehicles from the likes of Mercedes, BMW, Audi etc with monthly stipends ranging from €1,200 to €1,500 and more in some cases.

Yet, as with most things to do with motoring and finance, it seems to make sense to both parties.

And it certainly helps get more new 'big' cars out on the roads.

Here's a fairly typical scenario: You have a big salary, working for a thriving company and, as is normal in such an environment, you have a certain car allowance.

With a PCP you can use that allowance to get yourself into a new posh motor.

Something that could cost upwards of €100,000 or so to buy, but is more manageable as a monthly repayment.

Speaking to sources within companies (and they are at pains to protect their clients or anything that would in any way identify them), it is clear that the ability to have the use of a really special car is no longer the exclusive preserve of what many would have regarded as the 'privileged' classes or big bosses of yesteryear.

These status symbols are now attainable by executives at a much younger age who are obviously asking themselves: "Why wait til tomorrow when I can PCP it now?"

There is also no doubt that they are buying cars specced up to the gills with gizmos and bling - because the extra cost is not that much when broken down into monthly repayments.

Further down the scale the PCP mentality is taking a firm hold and it is leading to situations where, for example, someone in a large mainstream family/fleet car can see themselves getting into a prestige motor for not that much more a month.

Therein lies the sea-change: It's not solely about the car's retail price any more; it's about how much you can afford every month.

Indo Motoring

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