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hudsoncjnr
Soul
No - it may hurt dealers & manufacturers if the bottom falls out of the market but it will never end up affecting consumers as the financial crisis has.
With PCP, the dealer guarantees a final value with you before you sign on the dotted line. This is how the monthly payment is worked out...
Basically, it's:
Monthly payment = ((total value of car - final value price) / term lenth) * interest rate
If the market tanks and your car is worth nothing come the end of the deal, you hand it back and the dealer gives you the value you agreed when you 'bought' it. If the market surges and the car is worth more than the final value fee, you hand it back and have some equity to be able to put into a new model with that dealer.
You basically can't lose as long as you're able to afford the monthly repayment of the car until the end of the deal.