So its true about BMW drivers! 323whilst frantically jabbing the keyboard with one finger in order to give us the following: Yes - that's when we moved on to talking about residual value. I never initially argued that Audis and VW's were...
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People buy cars in all manner of different ways. Some get them on HP (mad if you ask me - either save the cash and buy new-nearly new, or buy 2nd-hand within your means), some on PCP, some on lease, some by having saved up the cash.
Buying on PCP-lease, however you look at it, is basically a form of finance package. You're getting to exclusively drive a brand new car straight away, without shelling out the new price for it. So someone is paying for it, and wants a return on their investment. Basically a bit like interest. But that's largely irrelevant as when you compare lease prices you compare monthly costs on a lease company's list, which aren't directly linked to list prices anyway, rather projected depreciation.
Finance - a more expensive car will cost more to finance than a less expensive one.
Buying cash - the interest the difference would earn over that time is lost if it's tied up in a piece of depreciating metal. That'd be about £400 in a cash ISA already over doubling the difference. Of course, that money could be put towards a much more lucrative investment, but then there's a lot more risk there....
-- "For want of the price of tea and a slice, the old man died."
