I posted this over at honestjohn, but what are briskodians thoughts:

So if I’ve read the press right, the prices of some cars are falling like a stone? Maybe larger petrol cars for example. If owners of these cars have purchased them on PCP’s 12-18 months ago when things were looking rosy, when the PCP ends and the dealer has to honour the future guaranteed value, what will this mean for us all? Are some car finance houses going to be stung? Just pondering.

when the PCP ends and the dealer has to honour the future guaranteed value, what will this mean for us all?

I would suspect probably fewer discounts on the car you're exchanging for to compensate...

Rob.

I posted this over at honestjohn, but what are briskodians thoughts:

So if I’ve read the press right, the prices of some cars are falling like a stone? Maybe larger petrol cars for example. If owners of these cars have purchased them on PCP’s 12-18 months ago when things were looking rosy, when the PCP ends and the dealer has to honour the future guaranteed value, what will this mean for us all? Are some car finance houses going to be stung? Just pondering.

If you were in that situation and wanted to just walk away from the car then you've probably had a lucky escape , but if you plan on trading it in for a new vehicle then expect them to try and claw back some of their loss on the next sale , and of course a new PCP will probably have higher payments as a result.

I don't think they are going to lose fortues here , but it's not going to help their profits

Expect higher payments on your next PCP.

For those of us who don't use PCP, this might be a good thing. I'm pleased to be not in the market ATM.

but the whole point of the GFV is that its far lower than predicted resale values. so they might be a few cars that will be bad news, but in the whole it wont make much difference. i think i looked at a fabia 1 on pcp recently and its GFV was about 3k after 10k per year over three years. im sure that wont be to worse off if at all.

but then if you own a saab big engined car, well you might get tuppence for it

but then if you own a saab big engined car, well you might get tuppence for it

Which is the problem my dad is in :thumbdwn: he has a 53 plate 9-5 2.3T Arc and now worth sod all :(