There is no secret trick or advantage to it. They buy the nicest car they can (barely) afford the monthly payments for, not one that makes most financial sense.

There is no secret trick or advantage to it. They buy the nicest car they can (barely) afford the monthly payments for, not one that makes most financial sense. > What about the PCP convinces them (rightly or wrongly) that they can afford those cars? At the end of the PCP plan, you don't get to keep the car (it's more of a rental than a purchase). Therefore the monthly payments on a 3-5 year PCP are going to be lower than on just a loan for the full price of the car. That makes it more "affordable" to people than actually buying a car - and the issue of what to do in 3 years time, when you will have no car, is conveniently forgotten.