Loving my 1 year young XC40 :)

[Deleted User 3629]

In my opinion PCP deal's were created by the bean counters only to put more people into new cars - and thus move more new cars - or perhaps people think it was created for the greater good of the consumer?? I smile when you see an advert to get into a new car for just £199pm - then, if you are really quick, and you do need to be quick, you may catch a glimpse of the small print at the bottom depicting the real cost sting - wonder why its usually written in a obscured same colour as the background???

[Den48]

Hi
Oldie you are right in so much that a pcp agreement is designed to put people into new cars that they would otherwise be unable to afford, but they do work for people provided they pick the right car like an xc40 that has one of the best residual values on the market.
You also have the ballon payment or guarantee minimum value that can cover you if the bottom suddenly falls out in the market.

[Deleted User 3629]

Guess I have always been on the side of consumers and do struggle with how PCP's, and other products, seem designed on temptation, and sometimes, and maybe more than sometimes, cause hardship - perhaps a bit heavy I know, and guess old school today - just don't like temptation tactics that put good people into often crippling debt - sorry

[m@rk]

Guess I have always been on the side of consumers and do struggle with how PCP's, and other products, seem designed on temptation, and sometimes, and maybe more than sometimes, cause hardship - perhaps a bit heavy I know, and guess old school today - just don't like temptation tactics that put good people into often crippling debt - sorry

Don't disagree with any of that sentiment but regardless of what they claim, we are talking about multi national corporations here not your cuddly local business and the single key motivation is money. Simply selling cars for cash doesn't make enough money but selling them on finance (any finance) equals higher margins and more units shifted.

Volvo (or rather their parent company) are no different to any of the others

[Deleted User 3629]

Think you have made my point very well - "Simply selling cars for cash doesn't make enough money but selling them on finance (any finance) equals higher margins and more units shifted". Ultimately we all have choices that we exercise at our own free will, and consumerism is a mighty wheel that must be kept turning - at all costs.

[Deleted User 3359]

Think you have made my point very well - "Simply selling cars for cash doesn't make enough money but selling them on finance (any finance) equals higher margins and more units shifted". Ultimately we all have choices that we exercise at our own free will, and consumerism is a mighty wheel that must be kept turning - at all costs.

Dealers haven't made money on new car sales for years! In the good old days when I was a Volvo Dealer Principal we made money from used cars, finance commission and accessory sales. You really had to sell vehicles in your own territory so that they at least came back for service...

[qrt31]

Think you have made my point very well - "Simply selling cars for cash doesn't make enough money but selling them on finance (any finance) equals higher margins and more units shifted". Ultimately we all have choices that we exercise at our own free will, and consumerism is a mighty wheel that must be kept turning - at all costs.

Indeed. I bought my P8 outright rather than on subscription. Beyond the fact that I do not want to be beholden to anybody else for how I treat my car (although I treat my cars impeccably) or how many miles I drive, financially subscription made little sense. I kept my last car for 11 years. I intend to keep my P8 for 10 years (although this could of course change). Doing the calculations based on 10K miles/yr, I would have ended up paying more than 58% more for the car on subscription over that period. Yes, there will some additional servicing, etc., but not £30K worth. And I will have some sort of equity in the car whenever I sell it, whereas I would not with a subscription.. I understand that initially Volvo only wanted to sell the P8 on subscription (and the way they treat cash buyers, it is clear Volvo does not want people to buy it outright - and most of the communications I get from Volvo reference subscription). If subscription had been the only option, I would have gone elsewhere.

[Rifleman]

Good luck regarding the car having some equity in 10 years time. IMHO trying to sell a car with a 10year old “first generation technology” battery in ten years time is going to be a nightmare, for your sake I hope I’m wrong…

[Deleted User 3629]

A 10yr old car, even if worth only a £1, is a £1 more than on subscription, and with a 58% saving, who cares about the £1-!! Yes PCP deals, and the like, help those who perhaps would not be able to otherwise have a new car, but, and as its been stated - its designed, not to put us in shiny new cars, but to create more wealth for the manufactures - and we fall for it every time???

[qrt31]

A 10yr old car, even if worth only a £1, is a £1 more than on subscription, and with a 58% saving, who cares about the £1-!! Yes PCP deals, and the like, help those who perhaps would not be able to otherwise have a new car, but, and as its been stated - its designed, not to put us in shiny new cars, but to create more wealth for the manufactures - and we fall for it every time???

Indeed. Although there is a lot of speculation, we don't know what the situation is going to be in 10 years, although it seems likely that battery might be repurposed for, say, domestic solar storage. Who knows! Since I see my car as something that will serve me as transportation, rather than as a financial product - which is how manufacturers and dealers want us to think about cars - I am happy with not paying hyped up subscription costs and just enjoying the car for a long period of time.