981 GT4s no longer PCP eligible -
Discussion
I had a lovely 981 GT4 last year but I got rid of it as I want one with 918 buckets, carbon interior pack, PCCBs but no club sport - so the wait continues. One close to perfect spec came up recently on AT and after a couple of calls, I was surprised to learn that the 981 GT4 is no longer eligible for PCP deals - e.g. no lenders (from the brokers I spoke to at least) are willing to guarantee a future value. HP with Balloon options do exist.
The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
There was always talk of 981 GT4 dropping into the 50s before the pandemic and car prices all went up. We never saw it and I doubt we will for a long time.
The car was underpriced when it was sold new, it's the first generation GT4. To some it's flawed but even the 718GT4 didn't exactly make it perfect.
The car was underpriced when it was sold new, it's the first generation GT4. To some it's flawed but even the 718GT4 didn't exactly make it perfect.
hiccup said:
I had a lovely 981 GT4 last year but I got rid of it as I want one with 918 buckets, carbon interior pack, PCCBs but no club sport - so the wait continues. One close to perfect spec came up recently on AT and after a couple of calls, I was surprised to learn that the 981 GT4 is no longer eligible for PCP deals - e.g. no lenders (from the brokers I spoke to at least) are willing to guarantee a future value. HP with Balloon options do exist.
The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
Interesting… I picked mine up in March. 918 buckets, carbon pack, ppf in the vulnerable areas, Sport Chrono, 19.6k miles for £72k. Prestige dealer selling it sorted the £47k finance through Alphera (BMW Finance). Only needed for 3 months and no penalties for early settlement. As good as gets for what I needed. It’s a keeper. Renting and balloon payments aren’t for me… let’s see what others are find as they attempt to find their perfect car.The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
DJMC said:
Am I correct in thinking PCP is the reason car prices generally are so high?
PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
The car buying in this country is built on pcp deals now. No one cares what the list price is just what the monthly cost is . Hence you get people pay £400-500 for normal cars. If you ring a dealer up and want to buy outright they lose interest quickly because they want you to finance the car and come back to them in 3 -4 years to pcp your next one. Hence why list prices for normal cars are so high and no one is interested in discounting cars .PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
In the middle of covid a dealer buying a friends 3 year old A3 said I know we are paying to much for your car but we need stock to sell or we will go out of business. He listed at £500 more than he paid for it but said he would make his money on the finance deal.
ClubsportStr said:
DJMC said:
Am I correct in thinking PCP is the reason car prices generally are so high?
PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
The car buying in this country is built on pcp deals now. No one cares what the list price is just what the monthly cost is . Hence you get people pay £400-500 for normal cars. If you ring a dealer up and want to buy outright they lose interest quickly because they want you to finance the car and come back to them in 3 -4 years to pcp your next one. Hence why list prices for normal cars are so high and no one is interested in discounting cars .PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
In the middle of covid a dealer buying a friends 3 year old A3 said I know we are paying to much for your car but we need stock to sell or we will go out of business. He listed at £500 more than he paid for it but said he would make his money on the finance deal.
Interesting that it coincided with the rise of the 'options pricing gone mad' era....sure it's only another £20 to your monthly....
DJMC said:
Am I correct in thinking PCP is the reason car prices generally are so high?
PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
Could very well be the case… Ford invented PCP back in the 90’s giving customers an opportunity to ‘own’ a new car and do so every 3 years. Really, as we know, know it’s just a week to keep producing cars and getting them sold. As you say, if they can make the monthlies and move onto whatever takes their fancy in 3 years why not… it’s the depreciation they’re covering.PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
If a GT4 gets down to mid to low £50’s they’d be a big correction on certainly everything below it, and stuff above.
PCPing is a very expensive way to own or rent a car for sure. But it was free motoring for the last 5 if not 7 years on gt4 which made it easy to fund. My guess is all that stuff now might be headed south as people only capable of.putting down 10% cannot play the game. Less people able to play means less buyers ... I haven't looked at the figures but it probably means that a 718gt4 is "cheaper" to carry for 18 months "rent" than the 981
anonymous said:
[redacted]
Depends… there’ll be buyers out there with cash to buy whatever car for £75k with cash, cash plus finance… my mate bought his Cayman R with money from his flexible Mortgage. That’s cheap money…Others will keep there cash for investments, use finance rather than tie there wedge up in depreciating vehicle. Me, I prefer to own everything around me and haven’t had a loan for a car since the 90’s.
With nice redundancy payout at the end of June and retirement I’ve allowed 3 or so months PCP for the GT4. No way I’d have gone down the PCP route otherwise. At the end of the day it’s down to one’s personal circumstances and outlook.
hiccup said:
I had a lovely 981 GT4 last year but I got rid of it as I want one with 918 buckets, carbon interior pack, PCCBs but no club sport - so the wait continues. One close to perfect spec came up recently on AT and after a couple of calls, I was surprised to learn that the 981 GT4 is no longer eligible for PCP deals - e.g. no lenders (from the brokers I spoke to at least) are willing to guarantee a future value. HP with Balloon options do exist.
The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
A number of finance providers have a max age at the end of the agreement where they are prepared to guarantee a residual value so I suspect the issue is an age thing rather than being model specific. You can always go lease purchase to get lower monthly payments than HP but you are on the hook for the terminal value.The specific car in question has a ticket price just over £70k but a book value of c£55k (which I appreciate doesn't mean huge amounts in this segment). Once that car has another c20-30k miles on it and there's no PCP deals available - are we going to see the GT4s finally enter into the mid-late 50's or below? Seems like only option will be cash buyers or to chop it in - which could be painful for someone buying one now?
ClubsportStr said:
The car buying in this country is built on pcp deals now. No one cares what the list price is just what the monthly cost is . Hence you get people pay £400-500 for normal cars. If you ring a dealer up and want to buy outright they lose interest quickly because they want you to finance the car and come back to them in 3 -4 years to pcp your next one. Hence why list prices for normal cars are so high and no one is interested in discounting cars .
In the middle of covid a dealer buying a friends 3 year old A3 said I know we are paying to much for your car but we need stock to sell or we will go out of business. He listed at £500 more than he paid for it but said he would make his money on the finance deal.
Kinda think that’s most major car dealers business model judging by the price they paid us last year for a 19 plate Mini. (6 months later they value the same car 25% lower so a great example of mean reversion/prices have calmed down)In the middle of covid a dealer buying a friends 3 year old A3 said I know we are paying to much for your car but we need stock to sell or we will go out of business. He listed at £500 more than he paid for it but said he would make his money on the finance deal.
Car dealers are now finance houses where the commodity just happens to be a car.
DJMC said:
Am I correct in thinking PCP is the reason car prices generally are so high?
PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
Increasing the pool of buyers making otherwise unaffordable cars more obtainable must inflate prices to a degree….PCP buyers don't care what the list price is, just the monthly payments.
I look at some of the Korean "boring" cars at £40-45k and think... "really?"
Unfortunate for people in their 20’s as if tempted with having a £30-40k shinny car on their parents drive for £500 a month it probably increases their chances of not owning a property.
When I advertised my TTS in 2015 on AT for a reasonable £25k I didn't get one call, for weeks.
Had to sell to Audi in the end.
I put this down to nobody having £25k cash and preferring to buy the same car from Audi on PCP.
Other, cheaper, cars I'd sold in the past for £4-8k went very quickly.
Perhaps £15-20k is the threshold over which most buyers need dealer finance facilities?
Had to sell to Audi in the end.
I put this down to nobody having £25k cash and preferring to buy the same car from Audi on PCP.
Other, cheaper, cars I'd sold in the past for £4-8k went very quickly.
Perhaps £15-20k is the threshold over which most buyers need dealer finance facilities?
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