Agreed.

But for those that prefer to buy used, it means that the market is awash with 2, 3 and 4 year used cars to choose from, with plentiful supply keeping prices reasonable.

In theory, yes, that should be the case, but it doesn’t seem to be happening. In part, I suspect the general increase in spec levels created by the separation of affordability and asset value at the new end of the market seems to have increased the used value for three to five year old cars. But I also suspect there is also something fundamental going on to remove these second hand cars from the market - a straw poll of colleagues who have traded in cars five years old and over suggests that very few of these have been re-taxed in the UK market. Perhaps they are all being scrapped, but it could be that there is a large export market of used cars to other RHD countries (mainly in Africa). I suspect that the overall industry is very good at ensuring that oversupply in the used market does not occur. 2005 D3 2.7 Auto
Previously:
2010 MY FL2 TD4e GS - Now gone at 199,500 miles, about 135,000 of them mine.
‘93 Defender 110 200TDi CSW
‘87 Defender 90 4 cyl Petrol
‘83 110 CSW V8 - best ever!
Range Rover 2-door V8 (not sure of year - 4-speed box and vacuum diff switch)
Series III SWB Diesel

Although, with the exception of my first FL2 (bought by a colleague) and my last D4 (bought by a trader for resale in Bristol, before the dealer could get their hands on it), all of the others went straight back onto the dealer’s forecourt and were sold on to the next user from there.

I believe some of the German marques will dispose of abroad to inflate residuals in the UK though.

Tigger wrote:

Agreed.

But for those that prefer to buy used, it means that the market is awash with 2, 3 and 4 year used cars to choose from, with plentiful supply keeping prices reasonable.

And some of them poorly refurbished to avoid end of term costs.

For example, remedial paintwork and alloy wheel repairs done on the cheap, only for the new owner to see rust and bubbling next year, seat renovation that loses it shape in 6 months, or worse still, a car that's had its mileage altered.

Worms wrote:

But I also suspect there is also something fundamental going on to remove these second hand cars from the market - a straw poll of colleagues who have traded in cars five years old and over suggests that very few of these have been re-taxed in the UK market. Perhaps they are all being scrapped, but it could be that there is a large export market of used cars to other RHD countries (mainly in Africa). I suspect that the overall industry is very good at ensuring that oversupply in the used market does not occur.

I look at all the new cars on the roads, everyone driving BMW ect and wonder, "what do these people earn to afford these cars?" then you realize that they are just leased, not owned.
I normally pay for my cars on HP, then own them outright and enjoy several years of no car payments, accepting maintenance bills as the cars get older but doing lots of the maintenance myself. Landrover - turning owners into mechanics since 1948

2014 Orkney grey Freelander SD4 GS.
2004 Zambezi silver Discovery 2 Td5 (Gone)
1963 Surf blue Morris Mini Minor Super de Luxe (my little toy)

I thought exactly the same when we were purchasing our FL2 I remember saying to the sales guy that I had never seen so many youngsters driving new Range Rover sports, his words were “PCP you don’t actually think they own them do you”

If it’s a heavily depreciating asset, with potentially very high maintenance costs into old age, please remind me what the of the benefits of owing it outright are

(I used to be a big believer in owning outright, rather than PCPing / leasing, until changing my mind)

I know we are not comparing like with like here, since for PCP you are talking about new cars...

but for me my cost planning is on the basis of having bought at eight years old and holding to 14 years old. Assuming no value at end, then depreciation is £100 per month. Assuming I set aside £1,000 per year each year for the bigger items that will fail and need garage (rather than DIY) repair, my monthly costs before fuel, tax and insurance are in the region of £184.

I don’t think I could match that under PCP but accept that PCP is providing a new car, peace of mind and no risk. 2005 D3 2.7 Auto
Previously:
2010 MY FL2 TD4e GS - Now gone at 199,500 miles, about 135,000 of them mine.
‘93 Defender 110 200TDi CSW
‘87 Defender 90 4 cyl Petrol
‘83 110 CSW V8 - best ever!
Range Rover 2-door V8 (not sure of year - 4-speed box and vacuum diff switch)
Series III SWB Diesel

Tigger wrote:

If it’s a heavily depreciating asset, with potentially very high maintenance costs into old age, please remind me what the of the benefits of owing it outright are

(I used to be a big believer in owning outright, rather than PCPing / leasing, until changing my mind)

Tigger wrote:

If it’s a heavily depreciating asset, with potentially very high maintenance costs into old age, please remind me what the of the benefits of owing it outright are

(I used to be a big believer in owning outright, rather than PCPing / leasing, until changing my mind)

Bobupndown wrote:

I look at all the new cars on the roads, everyone driving BMW ect and wonder, "what do these people earn to afford these cars?" then you realize that they are just leased, not owned.
I normally pay for my cars on HP, then own them outright and enjoy several years of no car payments, accepting maintenance bills as the cars get older but doing lots of the maintenance myself.

Personally I’ve no interest in owning a car, PCP/lease works for me. I could take it on HP but by the time it’s paid, I’m bored with it and fancy something else. I get 3 years sometimes 2 years of enjoyment out of it then it goes back for something else.

My Velar has a 2 year service interval so didn’t even need to spend the £600+ on that this time as it will be moved on just before it’s first service. 21MY Defender 90 S 3.0 D200

Bobupndown wrote:

Tigger wrote:

If it’s a heavily depreciating asset, with potentially very high maintenance costs into old age, please remind me what the of the benefits of owing it outright are

(I used to be a big believer in owning outright, rather than PCPing / leasing, until changing my mind)

i don’t pay £300 to Landrover for an oil change that costs me £50 or £600+ for brake replacement etc etc....

It’s not those things that bother me, it’s the catastrophic 4 and even 5 figure failures that concern me (on old Range Rovers doing high mileage) and knowing that I can budget a predictable amount each month and have access to a reliable (or instant loan car) car for work.

Both strategies have their place

Mowog wrote:

Some people get a kick out of driving around in the latest reg.

Not be, I like to opt out of all of that! The age is always hidden with a 1993/4 vintage plate