How did PCP work out in the end?

L-M

Technically what should of happened is that should have been settlement when you traded in.

You got the use out of the services so you need to call them and settle it or let it run. It’s only going to be 20/30 euro whatever.

Make sure you get the new service plan also, can be activated for up to a year. (But get it done sooner rather than later. You could do it over 24 months this time. Same price just divided by 24) It’s seriously good value and includes a brake fluid change at the 3rd service.

ofcork

I wonder what effect the virus/recession is going to have on car sales and as a consequence pcp.

L-M

Technically those in PCP are the most secure.

Blowheads

ofcork wrote: »

I wonder what effect the virus/recession is going to have on car sales and as a consequence pcp.

Yes, wonder will the cut the rates it how it will all play out

mickdw

This will surely kill car sales for 18 months or so but i dont see any major issue with pcp other than perhaps more than expected hand back at end of term with some pcp customers going back to driving older stuff for a spell. This is arguably a benfit of pcp versus more traditional finance where someone might owe 20k at year 3 of 5 year finance and then need to try to clear that finance and sell the car to get out of the deal if the sh1t hit the fan.
One thing that might be interesting - i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Blowheads

mickdw wrote: »

This will surely kill car sales for 18 months or so but i dont see any major issue with pcp other than perhaps more than expected hand back at end of term with some pcp customers going back to driving older stuff for a spell. This is arguably a benfit of pcp versus more traditional finance where someone might owe 20k at year 3 of 5 year finance and then need to try to clear that finance and sell the car to get out of the deal if the sh1t hit the fan.
One thing that might be interesting - i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Will the cut rates? Audi 3.9% would be tempted to change if the rate dried 6 as am at the end of the 3 years in September

Lantus

As mick says this is potentially the one type of extreme event where handing car back after 3 years and buying another one at a reduced value might work out better financially. You need the price and the timing to be spot on as well as a credit stream.

scooby77

mickdw wrote: »

i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Toyota have their own bank too, from 2018 here I think. Usually their lowest rate is 3.9% on PCP, but they definitely have financial muscle to offer lower. If they offered 0% on a Camry I'd be tempted!

ofcork

So would I real classy car in platinum spec.

mickdw

scooby77 wrote: »

Toyota have their own bank too, from 2018 here I think. Usually their lowest rate is 3.9% on PCP, but they definitely have financial muscle to offer lower. If they offered 0% on a Camry I'd be tempted!

Wasnt aware of that.
Is the camry selling at all?
I have not seen one on the road at all.

ofcork

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

PaulRyan97

ofcork wrote: »

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

They have 380 sold for 2019. You're probably looking at the Jan-March comparison for 2020-2019, they didn't go on sale until April.

ofcork

Selling pretty well I think Toyota had 400 available last year so nearly sold out,outsold even likes of honda civic opel astra etc.

I've seen a nice few on the road

xboxdad

Augeo wrote: »

I've seen a nice few on the road

I love the Camry, but I couldn't find it in a petrol version. I won't buy a hybrid, as my friends and also multiple neighbours got their catalytic converters stolen, one of them twice. I can't afford that, it's just too expensive to run. They seem to prefer older hybrids, but new ones still have the expensive metals they're after.
So either full EV or petrol for me. (not a diesel fan)

ofcork

Camry is hybrid only can get a petrol corolla alright.

bazz26

The petrol only engined Corolla were dropped by Toyota Ireland earlier this year.

mickdw

Maybe asking a silly question but whats the idea with stealing
Cat from hybrids over any other petrol car?

bazz26

the metals used in the hybrid cat are more valuable.

Mooooo

ofcork wrote: »

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

They are in a similar price to the rav4. Stopping the avensis line up has people either going back to the corrolla or into a rav4 I'd say. Cousin used to change the avensis every few years with a fairly consistent cost to change, with the avensis gone and the cost to change increasing he nearly left them but they came back a bit to meet him with the rav4 hybrid eventually. When there was no price difference between the two the rav4 was the better buy in his case

micks_address

not really pcp related but was chatting a car exec last week and he said the numbers of pre reg 201s is massive as all the car rental companies had orders in that got cancelled with covid 19.. he doesnt know what will be done with them now.. in terms of car sales in general i don't see why they wouldnt pick up once things back to normal.. that normal might be next january at this stage.. my tiguan is hardly being driven at the moment so im saving a fair bit on petrol and tolls and i suppose will end up with a lot lower mileage longer term.. i could drop from 20k km per year just going to work to a 3rd of that or 0 of that for 12 months as thats when our crew are suggesting it might be before the workplace is fully open for those who don't really need to be there and can work remotely

micks_address

micks_address wrote: »

.......... in terms of car sales in general i don't see why they wouldnt pick up once things back to normal.. that normal might be next january at this stage.. ..............

As you say, back to normal eventually, that may be January 2021 or beyond that again.

Hundreds of thousands will be after earning less in 2020 than they expected. It's thought by many that working from home will take off a bit due to Covid19 and remain significant beyond Covid19, with folk doing less driving to and from work couples might manage away being a one car household and other folk might decide cutting motoring costs might be prudent going forward.

Of course you'll get folk who can work from home 3 days a week going forward who'll decide they can now afford a Golf GTi instead of a diesel one with an R line kit on it, swings and roundabouts but recessionary times (and they reckon we are in one) are usually more bad then good and the V shape crisis theory isn't reckoned to manifest itself at the recovery end of things.

We might well not go back to the old normal.

L-M

I think that “Loads of cars were registered and the rental companies aren’t taking them” Is an old Wives tale. I heard it a few weeks ago but there are very few hire cars registered, they’ve be there bulk registered on 31st of March for number but it didn’t happen.

Maybe a few garages and registered themselves might have done them in February but there’s no great volume of them.

They’ll be missed, 9 month old stuff sells very well and great value for garages and punters alike.

carsfan2

@L-M,
as an insider, what do you think will happen post garages reopening?
Will there be enhanced PCP offers or discounts generally from manufacturers/importers and will dealers wait to see what happens before any changes to asking prices?

L-M

I’ve already commented on the situation a couple of times here and in short (and probably naivety) I honestly don’t think the manufactures have the money to drop the prices of the cars.

The cost of producing car has increased massively because of emissions, just google WLTP and it’s different phases if you don’t know. We’ve just had another price increase announced (Yes in the middle of all this).

You might see 0 percent on some stuff (Nothing Unusual there) but we’ve just already been through a very strong Q1 and the factories have been closed so stock won’t be available.

In short I think this year is a write off in terms of chasing numbers.

I’m “only” selling cars 13 years so I just about missed/can’t remember what happened the last time all went pear shaped, but I think it’ll be different this time as the whole world/ every manufacturer is in the same situation.

mickdw

How do the dealers survive though.
Sales will be through the floor. Our local main dealer group has something like 11 outlets and 5 franchises. Most of the outlets being recent additions. Its hard to imagine how they wouldnt be in trouble.

L-M

Yeah I honestly don’t know.

It’ll tell a lot of men from the boys. Anything that gets too big too fast especially in Car Sales which any Franchise is a Massive investment.

JoeA3

Hopefully most dealers will come out the other side. They might allow car dealers to open up again soon to some extent (similar to hardware / diy shops).

@L-M are ye managing to do any sales “online” during this situation? I’ve seen some dealers advertise that they are still available for “virtual sales”.

L-M

I have to say I find most if not all “online” enquiries we get are an absolute waste of time.

Just an example of the last 4 I dealt with

Guy emails about a 2017 car we had. Email him back and then he rings me straight away. Looking for a car for his son who needs it in July and his budget is half that of the 2017.

Another chap emailed about a car, asked him a cost of change, then he offered me half. Yes, half.

Another person wanted to trade in their 181 car against my 181 car because they didn’t like theirs.

Another person emailed me and just listed out what their 2012 car was with massive mileage and wanted a price to trade in.

We’ve sold a number of cars while closed, but we dropped them in price to gauge the market. So they were good value.

Toyotafanboi

You think that's bad, you'd want to see some of the service enquiries :pac: