[neebsta]

I just bought a 3.0 TDi SE Q5 a few years old, I bought it due to my Mum passing away and the likelihood of having to ferry my Dad around. it's a really well specced model, and has the bench seat plus, which was key to accommodating 3 adults. I did look at Q7s, but they were too barge like. I'd love an SQ5, but the only way I could own an SQ5 is to part finance, but I don't like finance on my vehicles, so I'm happy to stick with this one for now. It is now on approx 99k miles and still runs like a dream. As my mileage of up to 40k a year would kill any PCP or hire purchase contract agreement. According to a Merc dealer I went to when I had to sell my late mothers Merc is 75% of all cars have finance on them - this genuinely surprised me.

 

[neebsta]

Why? PCP is the Automotive industry way to get people into a car they wouldn't normally be able to afford.
You have no capital payments, just depreciation and finance cost.

PCP you actually pay for depreciation of the vehicle over the length of the contract and the minimum future value in 2/3/4 years or whatever the contract length happens to be. So my mileage @ 40-50k a year means the maximum length of contract up to 120k miles is really restrictive, I know, I have had a PCP about 6 cars ago. Plus a lot of schemes have mileage restrictions - to me that means there are better deals to be had in the nearly new/used market.

You never actually own the vehicle either. For me, I prefer to own it outright, which I do and have owned my vehicles outright for quite a few years now. It just works better for me with my above average mileage.

I was genuinely surprised at 75% of cars with finance, it does seem high to me.