Podcast Summary
Exploring innovative options for significant purchases: Consider lab-grown diamonds from Blue Nile with discount, customizable smart beds from Sleep Number, and Personal Contract Plans for cars, but be aware of the ownership implications.
There are innovative options available for significant purchases like diamonds and mattresses, and it's essential to understand how they work. Blue Nile offers lab-grown diamonds that are identical to natural ones, and they come with independent grading and a discount with promo code "listen." Sleep Number provides customizable smart beds to cater to individual sleep needs, and they're currently offering a 40% discount on their limited edition smart bed. In the car market, Personal Contract Plans (PCPs) have become increasingly popular, allowing consumers to lease a car instead of buying it outright. However, it's crucial to be aware that you never truly own the car with a PCP and that the final payment is often not an affordable option for most consumers. So, whether it's buying a diamond, a mattress, or a car, make sure to do your research and fully understand the terms before making a purchase.
Understanding Personal Contract Purchase (PCP) financing: PCP financing allows consumers to lease a car with a guaranteed future value, keeping equity for future trades, leading to continuous monthly payments, but potential issues if used car prices decline and interest rates rise.
Personal Contract Purchase (PCP) financing has become increasingly popular due to its convenience and affordability. With PCP, consumers can lease a car with a guaranteed future value set by the manufacturer. If the vehicle is worth more than that value at the end of the lease term, the consumer keeps the difference as equity. This equity can then be used to trade in the vehicle for another one, allowing consumers to continuously pay a monthly fee without having to come up with large sums of money for a new car. The popularity of PCP financing has led to a surge in new car sales, but this trend could be changing as used car prices begin to fall due to an increase in the number of used cars available on the market. This could potentially lead to trouble for consumers and manufacturers alike if used car prices continue to decline. The rise of PCP financing began around 10 years ago in the higher end of the car market but has since spread to the mass market in new cars and even the used car market. However, it's important to note that if interest rates rise or used car prices don't remain buoyant, there could be potential issues with this method of financing.
Used car prices may decrease due to increased supply: The end of leasing contracts could lead to a surplus of used cars, potentially causing prices to drop and consumers to pay more for trading in their vehicles.
The increasing supply of used cars due to leasing contracts ending could potentially lead to used car prices decreasing, and in some cases, used cars being worth less than the manufacturer's guaranteed value at the end of the lease. This could result in consumers having to pay more per month or provide an additional deposit when trading in their cars. On the other hand, the digital disruption in the estate agency market by Purple Bricks, a hybrid online estate agency, has led to a surge in interest from investors due to its expansion into new territories and its fixed fee business model. Despite this, there are notes of skepticism from some analysts regarding the company's valuation.
Purplebricks Expands to US Amidst UK Success and New 1 Pound Coin Replacement: Purplebricks, a UK disruptor in estate agency, expands to US markets. In the UK, a new 12-sided 1 pound coin is replacing the old round one due to counterfeiting issues.
Purplebricks, a UK company disrupting the estate agency market with an online platform, is expanding to the US despite having a relatively small market share in the UK. This move has been criticized as premature by some analysts, but the company and investors remain optimistic about its prospects. Meanwhile, in the UK, the new 1 pound coin, which is more secure against counterfeiting with its 12-sided design, is set to replace the old round pound. About 3% of the current 45 million pound coins in circulation are counterfeit, making the change necessary for the Royal Mint. Businesses are adapting to accept both old and new pound coins until the old ones phase out by the end of the year.
Old Pound Coins to be Phased Out: From Oct 15, 2023, old pound coins will lose their legal tender status, and people need to spend, deposit, or exchange them before the deadline.
Starting from October 15, 2023, the UK government will no longer accept 1 pound coins as legal tender. An estimated 70 million pounds worth of these coins are currently in circulation and need to be spent, deposited in a bank, or exchanged before the deadline. Major supermarkets have announced they will continue to accept the coins for use in their trolleys. However, people might face issues with other machines or transactions that require exact change. The new pound coin, which was introduced in 2017, is more secure and has features like a hologram and a hidden security band. If you have the older pound coin tokens, you can still use them in supermarket trolleys, but you might face challenges with parking meters and other similar systems. For more information about the new pound and its security features, you can watch a video by Lucy Roachting on onft.com/money from October 13, 2023. Remember to spend, deposit, or exchange your old pound coins before October 15 to avoid losing their value.
