<div class="bbWrapper"><blockquote data-attributes="member: 4143" data-quote="Bobby Dazzler" data-source="post: 2854610"
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But for those who’ll buy another new car in a few years time anyway, then that doesn’t really matter: had they bought the car in cash then the same value would have disappeared in depreciation during the same period of time.
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<blockquote data-attributes="member: 149005" data-quote="greenmanslk" data-source="post: 2854677"
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but they still have an asset of some value at the end of 3 years
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You’re looking at the situation as someone who doesn’t want a new car every 2/3/4 years, and so whether it’s lease, PCP, HP, or cash, it will look very expensive. For those who do want to regularly replace their car with a brand new one then the most important thing is how much it costs in the 2/3/4 year cycle, and buying cash isn’t always the cheapest. By definition they don’t want the car at the end of the agreement.<br />
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For others they would rather finance a car than tie up capital in a car which they don’t intend to keep, whether that be to own their home, invest in their business, invest in other ways, etc. To them, cars may be seen as a liability rather than an asset because the vast majority lose value quickly, and so would prefer to put their money into an investment, ie an appreciating asset.<br />
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Vive la difference.</div>
