Finance rate "under review"

[Tonyshepp]

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.

agree something has got to give. I see QE is now being reversed so low interest rates won’t be back in the foreseeable future. Not a good time to buy an 80k car with a so so stereo.

 

[TomE]

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,.

Agreed. Lotus knew how many deposits they had and appear to have made a conscious decision to deprioritise the UK market deliveries. They could have block booked a chunk of finance to lock in rates for the first X months or Y customers.

 

[Leonard]

Agreed. Lotus knew how many deposits they had and appear to have made a conscious decision to deprioritise the UK market deliveries. They could have block booked a chunk of finance to lock in rates for the first X months or Y customers.

I'm also a little suprised that Geely doesn't yet have its own in house financing considering its size and ambition

 

[Jonhklee]

I'm also a little suprised that Geely doesn't yet have its own in house financing considering its size and ambition

The Chinese stock market is not healthy either it would seem…..

 

[vision]

The Chinese stock market is not healthy either it would seem…..

Interest rate on site gone up to 7.9!

 

[Tonyshepp]

BMW has put there’s up today to 9.9%

 

[Matthaus]

BMW has put there’s up today to 9.9%

On what? new? Loads of models still 4.9/5.9

 

[vision]

BMW has put there’s up today to 9.9%

The question is will they honour the original rate - 6.9 for early depositors or is the new rate on the site for new customers

 

[Matthaus]

The question is will they honour the original rate - 6.9 for early depositors or is the new rate on the site for new customers

Was 5.9 for early birds.. so no chance

 

[Magicman]

The question is will they honour the original rate - 6.9 for early depositors or is the new rate on the site for new customers

100% not, if its still below 10 by the time my car arrives in Feb I'll be surprised, there's no way I'm paying hundreds a month more for an emira than my gt4

 

[Twin Cam]

Seems we are heading back to the days of “ Cash is King”

 

[vision]

It will strangle sales and residual values if rates keep rising. I’m guessing most will go pcp to keep costs affordable but there is a point it becomes unaffordable

 

[Markc]

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.

You would be better to wait 3 months as stuff is going to depreciate rapidly over the next few months

 

[emiraspain]

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

or 10 if you live in spain...

 

[Twin Cam]

It will strangle sales and residual values if rates keep rising. I’m guessing most will go pcp to keep costs affordable but there is a point it becomes unaffordable

There might be some good second hand deals in a couple of years…….. if you don’t mind waiting for your car!

 

[Markc]

It will strangle sales and residual values if rates keep rising. I’m guessing most will go pcp to keep costs affordable but there is a point it becomes unaffordable

What is the guaranteed future value at 3 yrs with say 5k miles/yr?

 

[Dommo]

What is the guaranteed future value at 3 yrs with say 5k miles/yr?

£50,800 at 6k mile per year

 

[Markc]

£50,800 at 6k mile per year

At least on the PCP you know worse case what the depreciation is going to be

 

[Dommo]

At least on the PCP you know worse case what the depreciation is going to be

And you would like to think that's the worst worst case, as Lotus will assume it'll be worth more than that by the end of the PCP

 

[Jonhklee]

Seems we are heading back to the days of “ Cash is King”

Expect it is trumped by inflation