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PCP price changes

Discussion in 'The UK and Ireland' started by sam48, Jun 14, 2019.

  1. sam48

    sam48 Member

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    the LR inventory model S were listed yesterday at around £720 a month. Same cars today listed at £990 a month. Why?
     
  2. NorfolkMustard

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    Blighty
    I was looking at those too, as is was very close to the Model 3 monthlies. Much more car for the same money.

    t'was a largely indicative number though, as the consumer lender (barclays) wasn't then when it was £720, and still isn't now, giving PCP details when you click through, just HP/personal loan.

    window dressing to get you interested.
     
  3. ediflyer

    ediflyer Member

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    Have also heard mention of changes to treatment of VAT on PCP deals as well as some skittishness from the finance companies re residuals given Tesla recurrent pricing changes? Not sure how big a factor either of those are...
     
  4. DJP31

    DJP31 Active Member

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    It’s a bit of both, but by far the bigger bit IMO is the reaction to the £40k price drop. Can’t blame them either.

    There will be a lot of people priced out unless Tesla underwrite higher residuals or can get the interest rate down. Not sure how likely either are, the residuals can’t be increased too much otherwise they’ll fall foul of the “when is a PCP not a PCP” VAT problem.
     
    • Like x 1
  5. Mark_T

    Mark_T Member

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    I think we've seen the end of manufacturer supported residuals for that very reason, doesn't mean they can't do something about the interest rate though...
     
  6. DJP31

    DJP31 Active Member

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    Not that I’d consider it for a moment but a similarity priced Merc S class has about the same GFV as a Model S(based on a quick look at their site) but the monthly payments are over £200 cheaper. 0% finance from Merc finance.

    Not sure Tesla have the wherewithal to offer those sorts of deals though.
     
  7. DaveW

    DaveW Member

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    The really low residuals have made the PCP price much higher. Agree with the above, a combination of the VAT treatment and price drops.

    I’ve decided to lease my S, managed to find a cheaper inventory car (as per my post today). For me it’s just a mindset change that I’m actually just renting it, I’ve never planned to own my last three cars on PCP, so doesn’t make much difference really, other than I’ll have a firm date to hand it back.
     
    • Like x 1
  8. Mark_T

    Mark_T Member

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    They have done it on the S/X in the past, not 0% but not a lot more. With the 3 though the volumes are higher which also makes it harder to do.
     

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