Finance rate "under review"

[Leonard]

What's it adjust the monthlies by?

Only another 50 pounds.
I've gone from buying cash to pcp though and in current climate I'm not happy paying a possible £20k in depreciation and interest over 36 months.
The most I've ever lost on a car previously over same period is £6k
Possible may be other funding options so will see

 

[Matthaus]

My quote has gone up another £43 per month with the added 1%, that's with a 20k deposit

Ouch so £90 so far since the initial 5.9% then?

Off to buy a BMW

 

[Leonard]

Ouch so £90 so far since the initial 5.9% then?

Off to buy a BMW

I think it's par for the course everywhere at present. 7.9 is representative. Was hoping Lotus would take the hit though based on delays and goodwill.
An Alpine A110 at 6.9% and 25k cheaper is probably a more sensible bet for me at present.

 

[Magicman]

My quote has gone up another £43 per month with the added 1%, that's with a 20k deposit

What's the actual monthly now please with the 80k plus on the road price at 20k deposit? That's what I was going to put down

 

[Leonard]

What's the actual monthly now please with the 80k plus on the road price at 20k deposit? That's what I was going to put down

 

[scoates]

The website now says 7.9%
Expected a rise, and 1% added I can handle.
Phew

I was braced for worse! Not ideal but much better than 10%! Hopefully that will be where it settles for the long term and not any higher...

 

[New to Lotus]

No chance another 1% within next 6 months then probably another 1% 6 months after that.

 

[Tonyshepp]

Bank of England rate review is either end of this week or next and rates are predicted to raise by another 0.75%.
On the bright side cheaper than Porsche.

 

[fatjase]

It won't be sustainable for the industry as a whole if PCP rates rise above 10% as the cost of cars are such now that most people cannot afford to pay in cash for the car that they want / desire which could be crippling for the industry. Equally lenders aren't going to give their money away for free so some difficult balancing acts will be required. I'll wait and see what the rates are when Lotus tell me the car is coming (Q1 2023 hopefully) and if it's not palatable I'll put my money elsewhere as I'm certainly not paying £10-15k in interest over 3 years with a currently unknown level of depreciation to factor in.

 

[Leonard]

It won't be sustainable for the industry as a whole if PCP rates rise above 10% as the cost of cars are such now that most people cannot afford to pay in cash for the car that they want / desire which could be crippling for the industry. Equally lenders aren't going to give their money away for free so some difficult balancing acts will be required. I'll wait and see what the rates are when Lotus tell me the car is coming (Q1 2023 hopefully) and if it's not palatable I'll put my money elsewhere as I'm certainly not paying £10-15k in interest over 3 years with a currently unknown level of depreciation to factor in.

Yes I can see a big re-shift begin to happen in the next 6-8 months with car makers having to TRY to get customers into cars again.
Look how much prices have gone up in the past 8 years. A Mk7 Golf used to be £18k, now you are looking at £28k. A VW UP used to be £8k and now they are £14k!
Inflation cannot continue as it is in regards to car RRP, especially in tandem with interest rate rises. Nobody will be buying.
The only positive is that the lease scene may come back 'online' with a glut of cars sitting in fields, compounds and forecourts once again.

 

[Tonyshepp]

Yes I can see a big re-shift begin to happen in the next 6-8 months with car makers having to TRY to get customers into cars again.
Look how much prices have gone up in the past 8 years. A Mk7 Golf used to be £18k, now you are looking at £28k. A VW UP used to be £8k and now they are £14k!
Inflation cannot continue as it is in regards to car RRP, especially in tandem with interest rate rises. Nobody will be buying.
The only positive is that the lease scene may come back 'online' with a glut of cars sitting in fields, compounds and forecourts once again.

Plus there's been no discounting required as cars have been difficult to source.

 

[Ian C]

Plus there's been no discounting required as cars have been difficult to source.

Was reading on another thread that manufacturers will continue to restrict supply even after parts issues are sorted. The result has been less discounting and higher prices / more profit for each car. Manufacturers profit margins overall higher with less supply

 

[Leonard]

Was reading on another thread that manufacturers will continue to restrict supply even after parts issues are sorted. The result has been less discounting and higher prices / more profit for each car. Manufacturers profit margins overall higher with less supply

They say that, but greed/shareholder expectation will kick in again and they will want to take more market share

 

[4380r]

What's it adjust the monthlies by?

Depends on how much you finance.

 

[Evotion]

Don't forget we have £5k already in as a deposit.

 

[Matthaus]

Don't forget we have £5k already in as a deposit.

Not by tomorrow I won't, I think I am done with the unknown - off to buy a car I can pick up next week and not wait for ever with extra increases.

 

[TomE]

Yes I can see a big re-shift begin to happen in the next 6-8 months with car makers having to TRY to get customers into cars again.
Look how much prices have gone up in the past 8 years. A Mk7 Golf used to be £18k, now you are looking at £28k. A VW UP used to be £8k and now they are £14k!
Inflation cannot continue as it is in regards to car RRP, especially in tandem with interest rate rises. Nobody will be buying.
The only positive is that the lease scene may come back 'online' with a glut of cars sitting in fields, compounds and forecourts once again.

But manufacturers are subject to some eye-watering inflation on components and raw materials at the moment (30%+ on some), plus increasing energy costs and labour rates. Margins aren’t great (unless you’re Porsche), so opportunities to trim margins to maintain prices to consumers are limited. I’d expect most new car prices to increase into next year.

Most manufacturers don’t control the rates of their finance schemes and so are subject to the general increases. It’s going to get tough for car buyers over the next 6-12 months.

 

[BeHappy]

From my recent demo rides they always try and push the PCP which always say no I’m a cash buyer - response was even so we are recommending all purchases go PCP route as we don’t don’t what crash the car prices are going to sustain on trade in and your guaranteed future value of car

 

[Mistral]

But manufacturers are subject to some eye-watering inflation on components and raw materials at the moment (30%+ on some), plus increasing energy costs and labour rates. Margins aren’t great (unless you’re Porsche), so opportunities to trim margins to maintain prices to consumers are limited. I’d expect most new car prices to increase into next year.

Most manufacturers don’t control the rates of their finance schemes and so are subject to the general increases. It’s going to get tough for car buyers over the next 6-12 months.

Agreed, but if Lotus had prioritised it's home market where it also had by far the largest number of depositers, people who are financing wouldn't be in this predicament,.

 

[Leonard]

But manufacturers are subject to some eye-watering inflation on components and raw materials at the moment (30%+ on some), plus increasing energy costs and labour rates. Margins aren’t great (unless you’re Porsche), so opportunities to trim margins to maintain prices to consumers are limited. I’d expect most new car prices to increase into next year.

Most manufacturers don’t control the rates of their finance schemes and so are subject to the general increases. It’s going to get tough for car buyers over the next 6-12 months.

I think it's going to get tough for car makers. Not buyers.
There needs to be a review and reset by manufacturers on what makes a car attractive to and attainable to buyers.
High inflation will be that catalyst I believe. The majority of people won't be buying new cars over 45k (which is avg Golf R money now) on HP or PCP anymore.
So manufacturers will have to fight for our business again.
Why I think there will be some good lease deals again. It's the simplest way for manufacturers to move expensive cars to customers on limited monthly payments taking the sting out of the RRP before putting them back into the used dealer network at a more affordable price.