I was flicking between Forza and BH, but the game changer for me was the fact that the GFV of the Forza deal was seriously too high and I was worried I would and up with a car in negative equity when I came to trade it in. Couple that with 43ppm excess mileage and I thought I could end up with quite a bill if I hand it back
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I was flicking between Forza and BH, but the game changer for me was the fact that the GFV of the Forza deal was seriously too high and I was worried I would and up with a car in negative equity when I came to trade it in. Couple that with 43ppm excess mileage and I thought I could end up with quite a bill if I hand it back
Just an FYI. The contact number on the email after you apply for PCP is currently for the Birmingham store. They were really good though and Black horse are processing and approving as normal it's just Tesla being slow to update your account to reflect this.
How can you end up with negative equity with a GFV? Just hand it back at the end of the term and then it isn't your problem. 43 ppm excess mileage though is very expensive if you go there.
If you can afford the higher monthly payments, then you will pay less interest overall at 4.9% APR. A lower final payment also gives you more equity at the end.
GFVs were great in the days when they were highly likely to exceed the market value of the car because it gave you protection against excessive depreciation. But since HMRC recently got involved GFVs are now typically well below market value, which gives you limited protection against unexpected depreciation, but hopefully some equity in the car.
FWIW I actually think Model 3 residuals will remain very strong in the next 3 or 4 years as there will be literally nothing to compete with them on the used market in their price bracket.
MrBadger
Badger out
Except for a whole load of new cars from various manufacturers, such as VW ID 3 (VW Golf sector). At £30-36k for a new BEV with 300 mile range, I think its going to be a tough market for 2nd hand Model 3 sales.
Say 4 year old M3 SR came in at (pure finger in air) at 20k. What is anyone likely going to go for? That or a brand new VW ID 3 at £24k including incentives? I heard from reliable source that 15000 (pretty sure its UK) 'reservations' already received for the ID 3.
Its what happening now with e-Golf market apparently. You can get a new e-Golf for similar money to second hand when you add in £3.5k grant and dealers PCP incentives (was recently told £3k on that model). And have only a weeks wait to drive it off the forecourt.
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Depends how good the VW actually is and how long the waiting list ends up being. Maybe it will compete against used M3 SR, but certainly not the P models. e-Golf is just a half-assed first attempt at converting an ICE platform into an EV. VW dealer support for them appears to be non-existent too. I'm not actually seeing anything to compete directly with the M3 in the next couple of years and certainly nothing this year.
I see that more as a Model Y competitor. Certainly no match for an M3P in performance, but I can see how it would compete with SR+ to some extent as a family car. Also when do you realistically reckon any will be delivered to the uk? Maybe 2020? Production numbers I saw estimated for it were very low too, nothing remotely like M3 volumes.
Yeah, I agree. The market in 3-4 years is going to look very different.
The Kona Electric 64kWh GFV after 3 years was just over £10k on the agreement I had. So I reckon they could hit the used market at, say, £15k. Tops. With a real world range pushing 250+, with LKA and TACC and other stuff as standard, a longer warranty...that's going to be a really attractive proposition for a lot of used car buyers vs a more expensive used SR+. Same will be true of the e-Niro.
Yeah, alright, it's not a Model 3. But I've been on the Tesla bandwagon for nearly 3 years, and it was still a last minute choice to switch back into Model 3. The Kona is a good car, even if it does look silly. So Joe Public, who isn't bothered about 2 seconds quicker to 60mph and FSD, and doesn't know what an OTA update is...
(If Hyundai and Kia can get through "production hell" and get them out in any numbers, that is.)
Hardly like-for-like competition is it? There is a market for both the Kona and the M3, but they are really different markets. I certainly wouldn't consider a Kona over an M3 regardless of the cost saving. The only thing they have in common is that they are both EVs.
I've literally just told you that I had an order in for a Kona Electric that I was considering instead of a TM3, so yeah, on a sample of one I do think they're a fair comparison for the average car buyer. Kona 64kWh vs SR+ - They're a similar price, similar range, have similar features, are similar (internal) sizes. And, in fact, both the Niro and the Kona have a key advantage in the UK market in that they are hatchbacks. And they both still have all the dials and buttons that your average customer wants. And they have a better servicing network.
Absolutely, the TM3 Performance is an entirely different market. But at the SR+ level? I think your standard used car buyer, looking for an electric car, will be comparing the two.
MrBadger
Badger out
VW are treating their competitors to the ID 3 as, Tesla Model 3, Hyundai Kona and Kia e-Niro. They have presumably done the market comparison to come to that conclusion based upon many factors, some of which will not yet be in the public domain as their ID 3 is yet to officially launch - summer 2020, UK deliveries by end 2020 (believe it when I see it) and 15000 already on the UK(? big for UK, small for global) waiting list.
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All of this talk about X EV competing with Y EV is pretty short-sighted really. Their main competition is the ICE vehicles they are going to be displacing.
I'm sure the Model 3 (however that looks in a few years time) will attract plenty of buyers and so will the upcoming EVs. It's a market with massive growth potential. The cars that the upcoming EVs need to be better than are ICE vehicles from the same sort of manufacturers. They're extremely unlikely to match what Tesla will have on offer at the time in some areas, but they'll undoubtedly have certain features or pricing that makes sense for some. So in this sense PCP with the option to keep or hand back depending on what else is on offer is an attractive proposition vs. HP I feel.
I'm sure the Model 3 (however that looks in a few years time) will attract plenty of buyers and so will the upcoming EVs. It's a market with massive growth potential. The cars that the upcoming EVs need to be better than are ICE vehicles from the same sort of manufacturers. They're extremely unlikely to match what Tesla will have on offer at the time in some areas, but they'll undoubtedly have certain features or pricing that makes sense for some. So in this sense PCP with the option to keep or hand back depending on what else is on offer is an attractive proposition vs. HP I feel.
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I suspect you are correct. I'd completely forgotten that there was so little choice in the EV market that most buyers (who are not really car enthusiasts at heart) would be forced to choose between an M3 and some dull utilitarian crossover! I wonder if BMW considers the Hyundai Kona ICE as direct competition for their 3-series? lol
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Again the only common factor in those comparisons is that they are all BEVs. The fact remains that if you absolutely insist on buying an EV, there is actually so little choice that you end up making some really bizarre comparisons like BMW i3 vs Tesla M3 vs Hyundai Kona vs Nissan Leaf. Cars that would never be directly compared in the ICE world or in a future EV world with proper choice!
Totally agree, except the PCP GFVs are now so low as to give little protection against depreciation (42% GFV on 4 years 40k mileage for my P-). It was very different when I took a PCP out on my Model X a couple of years ago. Then it was 1.5% APR and a 50% guaranteed 4 year residual. For me that made it a no-brainer and even if Model X residuals crash and burn I still get to offload it to BH for 50% of original price. But Model 3 PCP is nothing more than a means to keeping monthly payments down compared to HP, but at a higher total cost. At the end you are almost inevitably going to need to pay the balloon to avoid losing out on some equity. I think 42% GFV is pretty pessimistic, but will be typical of all PCPs after HMRC stepped in to prevent PCPs being treated as pseudo lease cars.
