Saw an advert for a "new car" - no mileage but made late 2014 - so really ~18 mths old - so maybe some small differences from a new new car.
£23K when you take their finance rather than approx £31/32K new - BARGAIN - well maybe not!.
I asked about PCP rather than buying £478 per mth for 36 mths or £454 for 48 mths (£21792 in total)
The main dealer is doing the brand new car for £376 for 36 mths............. the difference is huge - nearly £3,700 cheaper to PCP the main dealer car.
Both Indie & Main Dealer wanted 1 month deposit in advance
The reasons I understand are Independent was wanting ~16% APR - Main Dealer advert is ~ 3% APR and different residuals I suppose but I have not seen that detail.
I'll be sticking to the tried & tested Cash unless a super duper deal comes along - low price & low APR - but I will need to seek approval from SWMBO.
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There are sometimes deals on leasing (more commonly than on PCP but that happens too) that are the only way to access what are really just big, disguised discounts. Manufacturers hesitate to support (cut) prices directly because they think it undermines residuals and perception of the brand.
Car manufacturing is mainly a fixed cost business over the short term and what manufacturers sell is in large part a function of what they can make. Rather than pile them up on airfields when the market is slow they will give it away somewhere, often on fleet discount, which is where the occasional stupidly cheap deals on Ling's site come from, indirectly. A new 5 door Micra for £115 a months for a year anybody? And that included VAT. It's pretty obvious that even if you bought that at a big discount, you'd struggle to sell it a year later, 10,000 miles up, at only a £1380 loss in depreciation.
In general though, I agree. I buy stuff I can pay for with money I have. But I hate monthly commitments and paying interest. I'd guess that far more PCPs are unsmart deals than smart ones. And the dealers absolutely love 'em of course, because so many buyers won't have the money for the balloon and come back for more.
The Outlander will be 5 years old this month. Just run in. I hope.
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70+% cars seemingly bought PCP - beware! - Manatee
