Why the PH hatred for PCP?
Discussion
SCEtoAUX said:
The bigger problem was Liar Loans, and it was rife.
Bloke says he earns £100k, bank chucks him £400k with no proof of income required. Guy that sells him the loan gets his commission and cares not one jot about whether the bloke can afford to pay back the money. Bank doesn't care because this kind of thing pushed house prices to the moon so they've got an appreciating asset to flog when the bloke can't pay.
Biggest scam of all time.
Yep still have my 'self certification' mortgage loan application forms from the 90s. An extension of the 'man from Del monte' school of thought. Bloke says he earns £100k, bank chucks him £400k with no proof of income required. Guy that sells him the loan gets his commission and cares not one jot about whether the bloke can afford to pay back the money. Bank doesn't care because this kind of thing pushed house prices to the moon so they've got an appreciating asset to flog when the bloke can't pay.
Biggest scam of all time.
Then there were the wonderful 'low start' mortgages for 'young aspiring professionals.'
What could possibly go wrong with these?
And to think just ten years earlier in the late 80s we sold our group of Estate Agencies and Professional Valuation and Surveying divisions to a well known bank who valued it entirely on a continuation of spiralling house prices and mortgage valuations that could never end. Those clever back room financial wizards eh? Roll on the early 90s crash just around the corner.
Quite bizarre that we never really learn from history and mistakes. Time and time again
Not unlike the current effects of Help to Buy subsidies on raising property values. It actually alienates those very people it is meant to help.
cailean said:
Any links discussing the toilet habits of bears or the Pope’s religious inclinations ?Deep Thought said:
??
He didnt say that?
Yes he did say that. Doesn't try to weasel out of it now on his behalf (don't know what you'd bother doing that anyway). He didnt say that?
PCP is a sure route to killing your wealth. People need to stop and think how long they actually spend in their car before they blow north of 25% of their take home pay on it, whilst thinking that 'everyone is doing it' (they're not). End of issue really.
Gordon_Roslin said:
Deep Thought said:
??
He didnt say that?
Yes he did say that. Doesn't try to weasel out of it now on his behalf (don't know what you'd bother doing that anyway). He didnt say that?
PCP is a sure route to killing your wealth. People need to stop and think how long they actually spend in their car before they blow north of 25% of their take home pay on it, whilst thinking that 'everyone is doing it' (they're not). End of issue really.
How others finance their cars has got nothing to do with you or anybody else. You come across as a miserable old codger jealous of anybody else having something now, that you have waited years for.
Give it a rest before you have a seizure
Gordon_Roslin said:
PCP is a sure route to killing your wealth. People need to stop and think how long they actually spend in their car before they blow north of 25% of their take home pay on it, whilst thinking that 'everyone is doing it' (they're not). End of issue really.
Would it be acceptable to you if someone spends north of 25% of their take home pay to purchase a car for cash?Gordon_Roslin said:
Yes he did say that. Doesn't try to weasel out of it now on his behalf (don't know what you'd bother doing that anyway).
He DIDNT. "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."
Taking out 110% mortgage does not mean you lied about your income.
Self certification is not lying about your income.
It might have been wreckless or ill-informed in the context of assuming the market would always rise but he never said he condoned lying and then blaming someone else.
Gordon_Roslin said:
PCP is a sure route to killing your wealth. People need to stop and think how long they actually spend in their car before they blow north of 25% of their take home pay on it, whilst thinking that 'everyone is doing it' (they're not). End of issue really.
Any evidence of this north of 25%???Other than the usual -
"the average UK wage is £27,000"
"the average UK PCP deal is £400 a month"
"most cars are bought on PCP therefore people on the average wage are paying £400 a month for PCP deals"
Monkeylegend said:
You come across as a miserable old codger jealous of anybody else having something now, that you have waited years for.
And that probably answers the original question in the thread title so perhaps we should be grateful for Gordon's contributions, not to mention the comedy value.Butter Face said:
Gordon_Roslin said:
north of 25% of their take home pay on it
He’s mentioned take-home pay here, but earlier he touched on available funds. So what I’m about to say is still relevant.
I touched on it earlier in the thread but I’ll reitterate it.
What he’s basically saying is this;
Let’s say a typical person, who’s lived a normal life, has a workplace pension which is strong, overpaying his mortgage a bit, has a few beers with friends most weekends, generally in good health and happy.... wants to buy a car. Now he has managed over 2 years to save £10k while living a normal happy life.
For argument’s sake, let’s say other than what he’s saving every month, he goes right down to £0 at the end of each month just before payday. So he has no available cash to buy a car on finance... unless he changes his lifestyle.
Gordon thinks this man would be TOTALLY BONKERS to spend anywhere near £2500 out of his savings, for a car.
THAT IS RIDICULOUS and shows just how bitter Gordon is.
What percentage is acceptable Gordon? 10%?
If so, that means if someone has £50k in the bank they can only buy a £5k car.
MADNESS! A car is typically one of the biggest purchases households make and you’re telling everyone on here that using 25% of what you have available is the wrong decision.
You’re making terrible generalisations, and to be honest I pity you, because you’re really silly.
nickfrog said:
And that probably answers the original question in the thread title so perhaps we should be grateful for Gordon's contributions, not to mention the comedy value.
Im not jealous 'that people have what I have without waiting', because they don't. I have a property with multiple paid off cars on it, they're paying hundreds a month to rent something and pretend to be successful. This is like a parallel universe where doing what the dealer wants is somehow genius and anyone who disagrees is just 'bitter'.
You enjoy telling yourselves that you're winning by doing PCPs and completely misrepresenting my points, well done. Classic millenial behaviour- moaning about how hard the system is without being willing to put the work in and not even having the intelligence to realise how wrong you are, which is particularly ironic as you ridicule those who actually speak sense that you can't comprehend.
To put it simply: dealers want you to PCP as it benefits them. If you want to do it fine but don't pretend you are financial heroes for spending £17,000 to borrow a 3 series for 3 years.
People need cars to go from a to b
All cars depreciate and cost money to run
Some people have opted out of company car schemes but have to run very new cars and do not have the funds to buy a car outright so they PCP or lease hire.
What I personally do not get is how so many young kids teenagers are running new S3/Golf Rs M140i’s etc it’s in my view impossible especially given the wages apparently that age group on average earn.
When I grew up I had crap cars worthless in value and frankly everyone else my age group did too. Something has changed in that time frame
Anyway as others have said no one cares how one does or doesn’t pay for their cars. Their choice
All cars depreciate and cost money to run
Some people have opted out of company car schemes but have to run very new cars and do not have the funds to buy a car outright so they PCP or lease hire.
What I personally do not get is how so many young kids teenagers are running new S3/Golf Rs M140i’s etc it’s in my view impossible especially given the wages apparently that age group on average earn.
When I grew up I had crap cars worthless in value and frankly everyone else my age group did too. Something has changed in that time frame
Anyway as others have said no one cares how one does or doesn’t pay for their cars. Their choice
Welshbeef said:
What I personally do not get is how so many young kids teenagers are running new S3/Golf Rs M140i’s etc it’s in my view impossible especially given the wages apparently that age group on average earn.
When I grew up I had crap cars worthless in value and frankly everyone else my age group did too. Something has changed in that time frame
Many live at their parents home for free.When I grew up I had crap cars worthless in value and frankly everyone else my age group did too. Something has changed in that time frame
Including free meals washing and ironing etc etc.
Gordon_Roslin said:
To put it simply: dealers want you to PCP as it benefits them. If you want to do it fine but don't pretend you are financial heroes for spending £17,000 to borrow a 3 series for 3 years.
I just did an online build on a new 3 series which came to £41,000. If I bought it new and ran it for 3 years doing say 12,000 miles a year what do you think it would be worth?I know that’s the list price and I can get a discount but that would also apply to the PCP price.
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