Still its only £5000 for a decent Suv and 12 18 month wait for one
I feel you need to back up what you are saying with numbers and demonstrate the problem. I had a quick look at a BMW X2 2.0i Xdrive Sport retails for £38360 or £31967 ex VAT. Deposit is £3299 and three years of PIP is £6120. They sell on Autotrader after three years for about £25000 but I doubt the retailers don’t pay that at auction. Lets say they get back £23000. So total income would be £3299+£6120+£23000 = £32419 which is £452 more than the actual car costs. There is an argument for discounts, but so is there for additional costs – breakdown, insurance, adaptations and tyres. I know this will not be the same for all cars. At £452 for the 650,000 customers, that equals £293,800,000 every three years(circa £98m per year). So whilst looking at profit alone, it is a big number, but look at numbers per customer and it suddenly becomes small beer. What do you guys think? E&OE
3 years of PIP at £62.55 a week with CPI increases works out at around £10k. The VAT free purchase is basically what makes the scheme viable. The argument now is how much profit should be returned to members perhaps in the form of a dividend at the lease end.