Quote:
Originally Posted by FunkyMelon
They're popular for 3 reasons.
1: People are materialistic - Like to have the latest and greatest and care what people think about them.
2: Cars are getting more expensive and people began to stop buying new about 10 years ago, hence scrappage schemes/the birth of PCP plans.
3: It's very easy to do PCP now. I could walk into pretty much any garage, wack a deposit down and drive off/spec whatever I want.
Back in the good old days you were considered pretty daft taking out a big bank loan to use on just a car, these days though, finance is just the norm, I read on an RAC (or something similar) article that 75% of all cars on the road are on finance now.
There are people I work with who are younger than me, earn far less than me, yet all drive nicer cars than me and I'm only 28! One guy I work with pays over £450 a month to drive an RS4 and he put down a hefty deposit too.
The only benefit I see to PCP is the dealer taking care of any issues, but any second hand car would have to go pretty horrifically wrong to be close to costing what someone on PCP is paying over the 3-4 years.
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Also young people realise that they're not going to be owning property any time soon so they plough their money into owning a nice car on PCP & carry on living with their parents instead. To an extent I can't blame them for that.