What would the roads look like if car finance was stopped?
Discussion
Was thinking, what if people had to buy their cars for cash, how would the automotive landscape in the UK look?
Presumably fewer 'premium' metal? More older (better maintained?) metal being the norm?
Would taxes change to cater for this? Harsher on old metal to gain revenue lost from new sales?
Would be interested to heard your thoughts.
Presumably fewer 'premium' metal? More older (better maintained?) metal being the norm?
Would taxes change to cater for this? Harsher on old metal to gain revenue lost from new sales?
Would be interested to heard your thoughts.
depends what you mean by 'stopping car finance'
the company car market would remain thesame or return to the 90s when most company cars were 'normal' makes and models chosen from a restricted list rather than the current asperational leasing
outright purchasers would contoinue to purchase outright , as i suspect would those who finance via personal loan etc
the main difference would be the removal of the PCP treadmill of pay bugger all a month for 3 years , then still owe several K or 'hand the car back and take out a new PCP'
the company car market would remain thesame or return to the 90s when most company cars were 'normal' makes and models chosen from a restricted list rather than the current asperational leasing
outright purchasers would contoinue to purchase outright , as i suspect would those who finance via personal loan etc
the main difference would be the removal of the PCP treadmill of pay bugger all a month for 3 years , then still owe several K or 'hand the car back and take out a new PCP'
Doesn't really matter does it, because after all it's not likely to happen... In the 90s we had FSO and Lada and nobody bought them so they left the market. Now it's Citroen and Renault that are principally suffering squeeze because the Korean entrants are better and a little cheaper whilst the residuals of an Audi or a VW are better so they are less financially viable.
Why does having finance for a car offend people so much? It's universally impossible torun a car without spending money and since this is a motoring website there seems to be a huge intent on doing the fun thing in life for as little as possible. If people want to finance cars let them, it will only be a few that get in beyond their means and for me the fault is as much with the lender as the purchaser. If anything car finance is better because there is an asset to repossess which you can't do with two weeks in Portugal. Not to mention the finance house buys well below list so even if they don't get back everything owed they are still right side up.
Why does having finance for a car offend people so much? It's universally impossible torun a car without spending money and since this is a motoring website there seems to be a huge intent on doing the fun thing in life for as little as possible. If people want to finance cars let them, it will only be a few that get in beyond their means and for me the fault is as much with the lender as the purchaser. If anything car finance is better because there is an asset to repossess which you can't do with two weeks in Portugal. Not to mention the finance house buys well below list so even if they don't get back everything owed they are still right side up.
I haven't had finance for a car for the best part of 10 years now. I don't buy new, couldn't afford to get anything that would inspire me and be new for cash, but I tend to purchase sensibly. I'm not afraid of having a car 10 or 15 years old, and I like to buy cars that have sort of hit there depreciation limit. My last few cars have all been fairly interesting (Alfa GTV Cup, Porsche 928S, 996 C4, Ranger Rover V8, and now I have an Elise), they've cost me far, far less with next to no depreciation and of course no interest to pay.
You don't have to be driving around in s
t heaps, there are plenty of very interesting cars out there for not a lot of cash. I really don't get the need to have a new car and it absolutely puzzles me when people I know get a loan and blow £20k plus on a Mondeo or standard 3 series when you can have some serious fun for a lot less AND you'll be far better off financially in 3 or 4 years time.
You don't have to be driving around in s
t heaps, there are plenty of very interesting cars out there for not a lot of cash. I really don't get the need to have a new car and it absolutely puzzles me when people I know get a loan and blow £20k plus on a Mondeo or standard 3 series when you can have some serious fun for a lot less AND you'll be far better off financially in 3 or 4 years time.I have noticed a massive change with this is the army, when I went through the REME school about 5 years ago there were a lot of knackered cars being driven by the new entrants to the army being kept going with what was left of the wages after drinking!
I went back in November last year for the next stage in my training and now the car park is like a car dealerships car park with row upon row of cars less than 3 years old all financed to the hilt by 18-20 yea old guys.
Not that I am knocking it, if I was given the chance to drive a brand new car at 18 I would have jumped at it!
I went back in November last year for the next stage in my training and now the car park is like a car dealerships car park with row upon row of cars less than 3 years old all financed to the hilt by 18-20 yea old guys.
Not that I am knocking it, if I was given the chance to drive a brand new car at 18 I would have jumped at it!
Thin White Duke said:
Where would people get second hand cars from if no one bought new ones on finance?
The ones that are already on the road, mostly. These days most cars get scrapped when there is nothing much wrong with them because the market views them as worthless. If new cars weren't so obtainable, we'd fix cars we're currently scrapping. Interestingly, the average age of cars on the road is actually rising at the moment.
Edited by kambites on Saturday 7th June 21:58
What percentage of cars on the road are company cars?
Didn't the SMMT just announce that car sales have increased for the 27th month in succession? I could easily afford a Juke on PCP lease but I've no need or interest in a new car.
What would be the impact on British manufacturers like BMW MINI and Nissan? I think it's a good thing that some people are employed making things rather than gambling on the property price bubble.
I'm more interested in cars than how people afford or fund them.
Didn't the SMMT just announce that car sales have increased for the 27th month in succession? I could easily afford a Juke on PCP lease but I've no need or interest in a new car.
What would be the impact on British manufacturers like BMW MINI and Nissan? I think it's a good thing that some people are employed making things rather than gambling on the property price bubble.
I'm more interested in cars than how people afford or fund them.
g3org3y said:
Was thinking, what if people had to buy their cars for cash, how would the automotive landscape in the UK look?
Presumably fewer 'premium' metal? More older (better maintained?) metal being the norm?
Would taxes change to cater for this? Harsher on old metal to gain revenue lost from new sales?
Would be interested to heard your thoughts.
The Car Industry would probably collapse...Presumably fewer 'premium' metal? More older (better maintained?) metal being the norm?
Would taxes change to cater for this? Harsher on old metal to gain revenue lost from new sales?
Would be interested to heard your thoughts.
Less Cars on the Roads...
webby23 said:
Probably look similar to modern day Russia.
Loads of battered old heaps being driven about.....
Lada and Yugo would make a massive comeback.
.....have you been to Moscow ! I saw more Bentleys & Range Rivers than Ladas & Zils, which to be honest was a little disappointing !Loads of battered old heaps being driven about.....
Lada and Yugo would make a massive comeback.
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