www.bbc.co.uk/news/business-30706580
Seems sales are on the up, anyone here in the 2.5m new cars buyers? Seems 75% bought at main dealers are on tick.
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Would love to know how many of these were company cars, I was in that category as a new company car recipient, don't expect I will have another brand new car as I will retire in the next few months/years.
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I think company cars sales are about 1 million.
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www.fleetnews.co.uk/news/2014/7/29/12-year-fall-in-company-car-numbers-is-halted/53120/
Seems to suggest a million in total, so on a 3 year lease, 1/3 of a million new company cars per year?
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>> Seems to suggest a million in total, so on a 3 year lease, 1/3 of
>> a million new company cars per year?
>>
That makes sense but is much less than I would have thought before, my original guess would have been much closer to your original million, guess it comes from working with lots of other company car users.
I think the benefit in kind number you quoted is the best figure for what most of us would count as company cars.
Thinking about it. along the 10 houses on our reasonably affluent Buckinghamshire road there are only two of us with company cars.
Last edited by: commerdriver on Wed 7 Jan 15 at 15:06
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>>Seems 75% bought at main dealers are on tick.
I'm agog at this really; though I know many of the buyers can afford it.
A retired friend and his wife change cars every 3 years or so for new.
If you ask what they paid for it they don't actually know; just that it was a good deal because the monthly payment is about the same so what's not to like? And of course if they kept it they'd have to stump up the residual, which they have the money to do as far as I know.
Odd way of looking at things to me, but you can see why the trade love PCP; millions of cars funded by credit and the borrowers feeling as if the new car is "free" as long as the monthly payment doesn't go up too much. WIN WIN WIN WIN - lender, buyer, dealer, manufacturer.
Just one aspect of a country living way, way beyond its means and all common sense even after the lesson of the banking crisis. Largely underpinned by disproportionate house price inflation (also funded by loans with the idiot Osborne throwing petrol on the fire and creating the next recession).
There will be a mighty unwinding at some point, as the younger generation find they can't afford the houses and the oldies have spent their inheritances before falling off the twig.
It's a curious thing that people somehow think they are better off when they have bought themselves more stuff.
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About 75% of new cars bought in the UK are bought by companies and businesses-and,unlike the rest of the EU,in high levels of trim.
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>> About 75% of new cars bought in the UK are bought by companies and businesses-and,unlike
>> the rest of the EU,in high levels of trim.
>>
Is it that many, looks about 20% to me?
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>> If you ask what they paid for it they don't actually know; just that it
>> was a good deal because the monthly payment is about the same so what's not
>> to like?
Seeing those that work at main dealers that's all people are bothered about, the monthly cost. There's a couple of car salesmen on here I think?
>> Just one aspect of a country living way, way beyond its means and all common
>> sense even after the lesson of the banking crisis.
I'd say so but people have been doing it for years.
Largely underpinned by disproportionate house price
I'd agree with that.
>>
>> It's a curious thing that people somehow think they are better off when they have
>> bought themselves more stuff.
>>
I think it's a feel good factor that people get, then wears off pretty quickly. But it's their money.
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Just remember that if you buy on PCP,you don't own the car-it's the dealer or finance company who do! And then many people lease their cars-they don't own them either.75% is possibly an understatement.
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Doesn't leasing a brand new car make a lot of sense though. Known monthly costs, It's under warranty, and you just give it back and get to chose a new one after 3 years. No worries.
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>> Just one aspect of a country living way, way beyond its means and all common
>> sense even after the lesson of the banking crisis.
Not at all. PCP is just an alternative way of funding the depreciation that is inherent with all new car purchases. Unless you are suggesting we shouldn't buy new cars? For buisnesses leasing keeps assets off the balance sheet.
>> inflation (also funded by loans with the idiot Osborne throwing petrol on the fire and
>> creating the next recession).
>>
I think you are confusing Osborne with his predecessors. Their excessive borrowing exacerbated the effects of the world-wide recession for us here. Osborne & Co. have kept inflation very low.
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The global near-depression has kept inflation very low. Osborne has missed most of the targets he set himself.
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But hey, the economy is slowly improving, inflation is low , petrol is heading for a £1 a litre, unemployment in the UK is falling, the end of the world scenarios touted 5 years ago have not come to pass and the Conservatives are going to win the next election. OK you might have to wait for an hour in A and E but overall that's a result.
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>> Not at all. PCP is just an alternative way of funding the depreciation that is
>> inherent with all new car purchases.
PCP is just a loan. If you are saying that loans generally are a way of funding depreciation then your statement would be a logical inference, but that's a funny way of looking at it.
The cost of a loan is the interest. You'd have that even if the asset didn't depreciate at all in nominal terms. Having a loan also means spending money you haven't earned yet.
>>Unless you are suggesting we shouldn't buy new cars?
Not at all. Somebody has to. When I do, I use money that I actually have. Using somebody else's would just
(a) make me poorer
(b) enable me to buy less, not more stuff in the long run (that's quite important - sometime in the future, people will not be able to consume as much because their money will be going on paying down debt - except to the extent that the establishment can create inflation to whittle it away, which will screw all the prudent people who save).
>> For buisnesses leasing keeps assets off the balance sheet.
For operating leases, yes; but it doesn't make the cost go away or the structural risk of debt funding. But businesses should do whatever is most efficient, congruent with acceptable risk. It's consumers I am concerned about.
Borrowing to finance assets that produce no return and depreciate like a piano falling off a cliff is a mug's game and if everybody could believe that when they leave school, there's be a lot less misery in the world.
>> I think you are confusing Osborne with his predecessors. Their excessive borrowing exacerbated the effects
>> of the world-wide recession for us here. Osborne & Co. have kept inflation very low.
Not house price inflation. And frankly not the other kind either - other factors are doing that. I imagine HMG would like to see a bit more inflation, not less. What does he think happens when you give people money, or lend it to them interest free, to buy houses?
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New cars sales up - commerdriver
