I didn't mean anything by the question, nor was I implying anything.
I thought you might have made a 'professional' comment on PCP - which you have (sort of !)
Is all consumer finance the work of the devil ? is pcp any better or worse. I suppose PCP run by BMW is 'commercial finance' at the end of the day
No.......... it's consumer finance to the end user
I was being flippant over the 'work of the devil' comment
Of course it has its uses
However PCP has allowed people to use/drive high end vehicles that they normally couldn't afford too
Take Neil W's Seat man, who has gone from a Seat Leon FR costing maybe £15k to a £60k Audi Q7 (via an A4 and A7 IIRC)
He's a Leon or Golf fella normally..........but PCP has elevated him to a luxury vehicle worth 4x that of the Leon, normally only affordable to high earners
VAG have been cute and upsold him
Say his average term over the 4 car cycle was 2 years per car, he's probably paid £300/month (maybe more - who knows)
So 4x 24 months = 96 months @ £300/month = £28800 in monthly repayments and say every time up upgraded he chucked in say £5k x 3 vehicles since his Leon = £15000
So he's paid in rentals and cash £43800 to upgrade over time..............perhaps
So now he's 'borrowing'/'renting'/'hiring' his luxury Q7 and next year he's 65 and retiring and his income will fall, possibly making the Q7 unaffordable to 'rent' anymore
So for his £40k spends or so he may be left with S-F-A to put in another smaller car.............. as he may owe more on the Q7 than its residual value, when he wants/needs to offload
PCP has made him poorer and he may be left with no car
Is that good?
Depends on your version of reality?
He's had some (s)miles in his Audi's, he has looked great to his friends and friends driving around in a luxury Q7.............has it made him happy
Depends on how you 'define' happiness?