Why the PH hatred for PCP?

Why the PH hatred for PCP?

Author
Discussion

cailean

917 posts

174 months

Saturday 26th January 2019
quotequote all
It is still personal debt, mortgages have been tightened up and PCP etc hasn't. Personal debt is now at a higher rate than pre 2008, just a different form now. PCPs are like annuities to many (not all) and at the end of the term people have no choice (financially or keeping up with the Jones) to do it all again, it's a cycle of increasing debt.

anonymous-user

55 months

Saturday 26th January 2019
quotequote all
[redacted]

Deep Thought

35,923 posts

198 months

Saturday 26th January 2019
quotequote all
[redacted]

Deep Thought

35,923 posts

198 months

Saturday 26th January 2019
quotequote all
cailean said:
It is still personal debt, mortgages have been tightened up and PCP etc hasn't. Personal debt is now at a higher rate than pre 2008, just a different form now. PCPs are like annuities to many (not all) and at the end of the term people have no choice (financially or keeping up with the Jones) to do it all again, it's a cycle of increasing debt.
I'll bullet point to save time and make it easy for you

  • Car finance deals have been tightened up - there are much more checks and balances in place than there used to be
  • Personal debt was NOT the cause of the market crash in 2008
  • High personal debt was NOT a sign of an imminent market crash in 2008
  • Personal debt is now on the decline, not rise
  • New car sales are DOWN. The new car market has shrunk substantially over the last year to 18 months - new car sales are well down
  • People have a WORLD of choice at the end of a PCP - including but not limited to - take on another PCP, lease a car, buy a car on HP, buy a car on a personal loan, buy a car with cash.
  • Its not a cycle of increasing debt because people may well dip in to a PCP deal this time, take HP next time, take a loan next time or buy something with cash.

Deep Thought

35,923 posts

198 months

Saturday 26th January 2019
quotequote all
[redacted]

bad company

18,732 posts

267 months

Saturday 26th January 2019
quotequote all
[redacted]

av185

18,572 posts

128 months

Saturday 26th January 2019
quotequote all
[redacted]

anonymous-user

55 months

Saturday 26th January 2019
quotequote all
[redacted]

Deep Thought

35,923 posts

198 months

Saturday 26th January 2019
quotequote all
[redacted]

Car-Matt

1,923 posts

139 months

Saturday 26th January 2019
quotequote all
The 2008 financial crisis stemmed from the huge amount of sub-prime lending in the US, simple as.

It’s retarded in the extreme to think that 110% mortgages in the UK caused the issue, it’s likely that some people who used that product had some financial hardship as they converted to the variable rate as they exited their fixed term or when Norther Rock went bust but contributing to the cause of the crisis? Nah

nickfrog

21,320 posts

218 months

Sunday 27th January 2019
quotequote all
Get a car on PCP, start a recession.

SCEtoAUX

4,119 posts

82 months

Sunday 27th January 2019
quotequote all
[redacted]

bad company

18,732 posts

267 months

Sunday 27th January 2019
quotequote all
Car-Matt said:
The 2008 financial crisis stemmed from the huge amount of sub-prime lending in the US, simple as.

It’s retarded in the extreme to think that 110% mortgages in the UK caused the issue, it’s likely that some people who used that product had some financial hardship as they converted to the variable rate as they exited their fixed term or when Norther Rock went bust but contributing to the cause of the crisis? Nah
I agree the 110% mortgages can’t be blamed for causing a worldwide recession but they did cause a lot of pain in this country.

Deep Thought

35,923 posts

198 months

Sunday 27th January 2019
quotequote all
bad company said:
Car-Matt said:
The 2008 financial crisis stemmed from the huge amount of sub-prime lending in the US, simple as.

It’s retarded in the extreme to think that 110% mortgages in the UK caused the issue, it’s likely that some people who used that product had some financial hardship as they converted to the variable rate as they exited their fixed term or when Norther Rock went bust but contributing to the cause of the crisis? Nah
I agree the 110% mortgages can’t be blamed for causing a worldwide recession but they did cause a lot of pain in this country.
What caused the pain was the property market price crash. That caused a world of pain all over the place. 110% mortgages were only a small part of that.


Car-Matt

1,923 posts

139 months

Sunday 27th January 2019
quotequote all
bad company said:
Car-Matt said:
The 2008 financial crisis stemmed from the huge amount of sub-prime lending in the US, simple as.

It’s retarded in the extreme to think that 110% mortgages in the UK caused the issue, it’s likely that some people who used that product had some financial hardship as they converted to the variable rate as they exited their fixed term or when Norther Rock went bust but contributing to the cause of the crisis? Nah
I agree the 110% mortgages can’t be blamed for causing a worldwide recession but they did cause a lot of pain in this country.
As a result of the lenders relationships to banks and sub-prime lending in the US.

The pain in the UK was a result not a cause of this. The effects snowballed

anonymous-user

55 months

Sunday 27th January 2019
quotequote all
bad company said:
Car-Matt said:
The 2008 financial crisis stemmed from the huge amount of sub-prime lending in the US, simple as.

It’s retarded in the extreme to think that 110% mortgages in the UK caused the issue, it’s likely that some people who used that product had some financial hardship as they converted to the variable rate as they exited their fixed term or when Norther Rock went bust but contributing to the cause of the crisis? Nah
I agree the 110% mortgages can’t be blamed for causing a worldwide recession but they did cause a lot of pain in this country.
You need to separate social / individual impact from systemic failure.

It's wholly wrong to blame individuals in the UK taking out 110% mortgages, self-certs etc no matter how reckless or ill-informed for the collapse of the global banking system.


Gordon_Roslin

83 posts

66 months

Sunday 27th January 2019
quotequote all
Brooking10 said:
You need to separate social / individual impact from systemic failure.

It's wholly wrong to blame individuals in the UK taking out 110% mortgages, self-certs etc no matter how reckless or ill-informed for the collapse of the global banking system.
Are you suggesting that if an individual lied about their income, 'it's wholly wrong to blame them'?

Deep Thought

35,923 posts

198 months

Sunday 27th January 2019
quotequote all
Gordon_Roslin said:
Brooking10 said:
You need to separate social / individual impact from systemic failure.

It's wholly wrong to blame individuals in the UK taking out 110% mortgages, self-certs etc no matter how reckless or ill-informed for the collapse of the global banking system.
Are you suggesting that if an individual lied about their income, 'it's wholly wrong to blame them'?
??

He didnt say that?

anonymous-user

55 months

Sunday 27th January 2019
quotequote all
Gordon_Roslin said:
Brooking10 said:
You need to separate social / individual impact from systemic failure.

It's wholly wrong to blame individuals in the UK taking out 110% mortgages, self-certs etc no matter how reckless or ill-informed for the collapse of the global banking system.
Are you suggesting that if an individual lied about their income, 'it's wholly wrong to blame them'?
Gordon - are you a) fully reading and b) fully comprehending what you are replying to ?


Car-Matt

1,923 posts

139 months

Sunday 27th January 2019
quotequote all
Gordon is now saying that the financial crisis was caused by lying applicants for 110% mortgages in the UK.


I think we can discount Gordon’s opinions here