Porsche inflation (sometimes best not to look)

[andreas]

Think BMW in same boat too. Neither as exclusive as 20 years ago.

Exclusive? BMW? 20 years ago? The E46 3-series BMW was the ubiquitous repmobile, selling around half a million cars a year. Hardly exclusive.

[2japs]

Think BMW in same boat too. Neither as exclusive as 20 years ago.

Exclusive? BMW? 20 years ago? The E46 3-series BMW was the ubiquitous repmobile, selling around half a million cars a year. Hardly exclusive.

BMW was a bit exclusive but about 40ish years ago!

[crockers]

I almost bought a BMW way back. The 2002 Tii. But my wife didn't like it.

[Jon A]

I almost bought a BMW way back. The 2002 Tii. But my wife didn't like it.

Thanks Crockers, good info - top man

[Scooby_Doo]

I think the days of people buying cars on HP or for cash and getting full ownership are pretty much gone. Most people are on a PCP type deal with an optional balloon that they’ll never exercise and so all that really matters is deposit size and monthly repayments.

So the fact that a car as utterly shit as a Peugeot E2008 (I should know, I had one) can be £40k is irrelevant, as long as the repayments are affordable. However the fact a Macan starts at £53k (just £13k more) makes Porsche look like a more reachable brand than perhaps it once did. And if I was Porsche, and I felt that we would continue to sell every car that we had the capacity to manufacture*** that would bother me. Because, as a previous poster states, if Porsches cease to be exclusive could those waiting lists might start being eroded by customers looking for more exclusive brands?

*** ignoring the Taycan ‘can’t give them away’ issue.

My Macan is mine and PCP rates are hard to justify. £53k for a car is a dream for most people and as we all know buying a car and being able to maintain it are two different things.

[PaulR]

It's a bad idea to buy a depreciating asset on finance. It's a worse idea if that finance is PCP, the most expensive finance product out there. Given the popularity of PCP though, I presume most people don't understand the product, do it because everyone else does it, badly want something they cannot otherwise afford, or simply don't care!

[Bluesnose1812]

PCP is fine if you have no capital and can only afford £xxx per month. You pay through the nose but get to drive the car you want. That suits 80% of private new car buyers

[PaulR]

This shows why PCP is so expensive.

Cash = £72k
Repayment cost = £86k
PCP cost = £93k

I imagine many people who use PCP focus on the monthly payment and not the TCO.

[Iceicebaby]

It's a bad idea to buy a depreciating asset on finance. It's a worse idea if that finance is PCP, the most expensive finance product out there. Given the popularity of PCP though, I presume most people don't understand the product, do it because everyone else does it, badly want something they cannot otherwise afford, or simply don't care!

I think there are a lot of naive buyers out there who don’t have the first idea how much they are actually paying in interest. They are drawn in by the only thing that matters to them, how much does it cost a month….. they are a salesman’s dream!

[PaulR]

My previous PCP example assumes you find the cash to pay off the GMV. If you were to take out a 4-year loan on the same interest rate to pay off the car and get out of the PCP loop, we have a 4th figure.

Cost for:
1. Cash buyer = £72k
2. Repayment loan = £86k
3. PCP with GMV paid cash = £93k
4. PCP with another loan to pay the GMV = £102k << Help!!!