Equities tied to PCP car finance lenders are outperforming the auto industry benchmark YTD, with EPS revisions trending upward to $1.43 from $1. If you want to buy the car you will need to pay your final balloon payment (the GFV). This could be a large sum, although you know what it will be from the outset. Despite a recent surge in demand, the US is a laggard in EV sales compared to much of the rest of the world. PCP car finance-related equities track correlation of 0.72 with consumer discretionary index. With oil prices stabilizing, auto loan demand is expected to rise, providing positive spillover to stock performance.
