The economics of new car sales

[Grandfondo]

daemon said:

You mean Grandfondos feeble attempt to relate the potential of rising interest rates to people who lease / PCP cars as "not being able to afford them" doesnt really hold water?

Not having much luck today Grandfondo?

Like your attempt at car trading?

[Justin Case]

Handbags at dawn?

[Grandfondo]

Justin Case said:

Handbags at dawn?

Only if you can finance it!

[Grandfondo]

Justin Case said:

Handbags at dawn?

Only if you can finance it!

[daemon]

Justin Case said:

Handbags at dawn?

When hes on the ropes and losing the argument he tries to make it personal.

Sad on many levels really.

[daemon]

Grandfondo said:

Only if you can finance it!

Wasnt funny the first two times either.

[xRIEx]

Grandfondo said:

xRIEx said:

Grandfondo said:

xRIEx said:

Grandfondo said:

Are you being serious?
Did you sleep through 2008-10?
New car sales plummeted ,why?
Why did repossessions soar?

It all affects people with fixed rate PCP deals when their disposable income reduces!

I hope that's not to complicated for you?

So why would the BoE put interest rates up if it would cause another credit crunch?

BoE use interest rates to control inflation and equally as bad stagflation so at some point they will put IR up.

Yes, economics 101. However "at some point" is vague to the point of being completely useless.

Excessive increases in interest rates create negative equity, consumers are better off defaulting, they do, credit crunch. So it will happen when the economy can support it, which means not screwing the majority of people.

That is why it's is being kept at an unrealistically low rate to protect the "majority" of credit monkeys!

Again you say "unrealistically" when that is exactly the reality we're in, the economy is growing faster than other countries so the 'fictional' low interest rates may be working.

Are you going to explain why they're unrealistic yet, or just avoid the subject again by saying "oh dear"?

[xRIEx]

daemon said:

xRIEx said:

So it will happen when the economy can support it, which means not screwing the majority of people.

You mean Grandfondos feeble attempt to relate the potential of rising interest rates to people who lease / PCP cars as "not being able to afford them" doesnt really hold water?

Not having much luck today Grandfondo?

That's exactly what I mean.

[Justin Case]

Grandfondo said:

Justin Case said:

Handbags at dawn?

Only if you can finance it!

Buy or PCP/lease

[Grandfondo]

daemon said:

Justin Case said:

Handbags at dawn?

When hes on the ropes and losing the argument he tries to make it personal.

Sad on many levels really.

What bits am I losing?

You have agreed that PCP does get some people into cars they can't afford to own!

Are you saying IR won't ever rise?

Are you saying that the affects of the credit crunch wasn't because of over borrowing ?

Is the country drowning in personal debt?

I thought it was ostriches that burried tier heads in the sand not debt monkeys!

[daemon]

Grandfondo said:

What bits am I losing?

Your dignity and the value of your opinions

[xRIEx]

Grandfondo said:

You have agreed that PCP does get some people into cars they can't afford to own!

Some, some, some. Some people use hammers to kill other people, it doesn't mean hammers are inherently bad.

Grandfondo said:

Are you saying IR won't ever rise?

No one has ever said that. Rates will rise; then they will fall again; then rise again; fall again ...

The sun will also turn supernova and all life will die out. Unfortunately, I can't be too specific on when this will happen. Just like you and interest rate rises. Give it up.

Grandfondo said:

Are you saying that the affects of the credit crunch wasn't because of over borrowing ?

No, it was due to competition between lenders in the US causing lax underwriting and accepting bad risks. I suppose you could dumb it down to say "over lending".

Grandfondo said:

Is the country drowning in personal debt?

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

[Grandfondo]

xRIEx said:

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

Some people would not agree!

http://www.thisismoney.co.uk/money/news/article-27...

[Grandfondo]

daemon said:

Grandfondo said:

What bits am I losing?

Your dignity and the value of your opinions

[xRIEx]

Grandfondo said:

xRIEx said:

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

Some people would not agree!

http://www.thisismoney.co.uk/money/news/article-27...

The Daily Mail money site?! Are you actually serious?

[Grandfondo]

xRIEx said:

Grandfondo said:

xRIEx said:

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

Some people would not agree!

http://www.thisismoney.co.uk/money/news/article-27...

The Daily Mail money site?! Are you actually serious?

Is it the figures or the site you disagree with?

The FT has a very similar piece if that suits you better! Or the Telegraph?

Whatever way you want to read it it's still £3.4 trillion!

P.S you said IR goes up and down and then some other unrelated crap, which way do YOU think IR will move first "UP" or "DOWN" I wait with baited breath for your financial pearls!

[r11co]

daemon said:

You mean Grandfondos feeble attempt to relate the potential of rising interest rates to people who lease / PCP cars as "not being able to afford them" doesnt really hold water?

Not having much luck today Grandfondo?

Ahhh, daemon - the champion of the 'never never'. Grandfondo pretty much has it spot on, and picking over the semantics and looking for small flaws in his argument is just obfuscation.

It will only take a small shift in interest rates to tip a number of people into unmanageable debt servicing situations. These are the sorts of people who right now think 'I can afford 'X' per month' and leave themselves little or no leeway. They are exactly the sorts of people that the 'from £xxx per month' lease deal adverts are pitched at.

Not everyone is in this category, but then again not everyone who signed up for payment protection insurance was mis-sold either.

[TA14]

r11co said:

Not everyone is in this category, but then again not everyone who signed up for payment protection insurance was mis-sold either.

Maybe you're on to something there - the PCP miss-selling saga...

[xRIEx]

Grandfondo said:

xRIEx said:

Grandfondo said:

xRIEx said:

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

Some people would not agree!

http://www.thisismoney.co.uk/money/news/article-27...

The Daily Mail money site?! Are you actually serious?

Is it the figures or the site you disagree with?

The FT has a very similar piece if that suits you better! Or the Telegraph?

Whatever way you want to read it it's still £3.4 trillion!

P.S you said IR goes up and down and then some other unrelated crap, which way do YOU think IR will move first "UP" or "DOWN" I wait with baited breath for your financial pearls!

What did the third bullet point of the subheading say? Significant interest rate increases would put the UK back into recession. And you claim that's "realistic"?

I never said they weren't going to go up - I said stating the obvious is pointless, especially as you offer no timescale or magnitude: an increase to 6% next month would be significant; an increase to 0.75% in two years is not so significant.

Saying "interest rates will go up" is as much use to any discussion as saying nothing - the useful information added is zero. Saying "interest rates will go up by 0.5% in the next financial quarter" offers information.

I know you think you're special or 'financially informed' by claiming rates are going to increase, but you're just coming across as an imbecile trying to sound smart. You're not saying anything anyone doesn't already know. As I've already stated, you're not saying anything, full stop.

[Grandfondo]

xRIEx said:

Grandfondo said:

xRIEx said:

Grandfondo said:

xRIEx said:

Drowning? No. As I stated earlier our economy is one of the stronger ones at the moment.

Some people would not agree!

http://www.thisismoney.co.uk/money/news/article-27...

The Daily Mail money site?! Are you actually serious?

Is it the figures or the site you disagree with?

The FT has a very similar piece if that suits you better! Or the Telegraph?
Whatever way you want to read it it's still £3.4 trillion!

P.S you said IR goes up and down and then some other unrelated crap, which way do YOU think IR will move first "UP" or "DOWN" I wait with baited breath for your financial pearls!

What did the third bullet point of the subheading say? Significant interest rate increases would put the UK back into recession. And you claim that's "realistic"

I never said they weren't going to go up - I said stating the obvious is pointless, especially as you offer no timescale or magnitude: an increase to 6% next month would be significant; an increase to 0.75% in two years is not so significant.

Saying "interest rates will go up" is as much use to any discussion as saying nothing - the useful information added is zero. Saying "interest rates will go up by 0.5% in the next financial quarter" offers information.

I know you think you're special or 'financially informed' by claiming rates are going to increase, but you're just coming


across as an imbecile trying to sound smart. You're not saying anything anyone doesn't already know. As I've already stated, you're not saying anything, full stop.

Time will tell.
But the argument that if we keep borrowing more and more they won't put interest rates up because another recession is not "realistic" is a very dangerous gamble to take!

3% base rate IMO is very "realistic" and to be honest it's on the low side!