Please Read - National Car Finance Update/Change

[CUE99T]

Gentlemen, I am not going for a plug here as we are in re-design stage of our site and will have new features very soon, however I thought you all should know that Balanced Payments Variable rate finance is being withdrawn this month if not already for any private individual.

Not sure what Balanced Payments is go here...

http://www.pre-approvedfinance.co.uk/Finance/Optio...



This change covers:
individuals that are employees
directors of a business
company owners that are buying a vehicle in their own private name and the asset is not going through the books of their business.

It does not affect:
Company owners that are buying a car and its going through the books of their business.


NO UK Funders will continue this and if you have a car in mind and plan to use this get in quick.

To help you work out the costs of the finance can use our calculator at www.pre-approvedfinance.co.uk or apply online too.

The credit crunch got to us all.....

Cheers
Paul

[dudlow]

You can only see residuals of F cars going further south as a result of the current climate. Bad for owners, good for future owners.

[Sarnie]

CUE99T said:

Gentlemen, I am not going for a plug here as we are in re-design stage of our site and will have new features very soon, however I thought you all should know that Balanced Payments Variable rate finance is being withdrawn this month if not already for any private individual.

Not sure what Balanced Payments is go here...

http://www.pre-approvedfinance.co.uk/Finance/Optio...



This change covers:
individuals that are employees
directors of a business
company owners that are buying a vehicle in their own private name and the asset is not going through the books of their business.

It does not affect:
Company owners that are buying a car and its going through the books of their business.


NO UK Funders will continue this and if you have a car in mind and plan to use this get in quick.

To help you work out the costs of the finance can use our calculator at www.pre-approvedfinance.co.uk or apply online too.

The credit crunch got to us all.....

Cheers
Paul

Is this a total withdrawal of ALL products for individuals and directors of companies or just the balanced payment option?

[jonny5]

just balanced payments, they will offer fixed rate deals and something to do with a 'rule of 78' which does not attract any extra months penalty interest and so will be a similar figure to a variable rate settlement. believe the date is April 5th

[matc]

This change has been brought in by the FSA to ensure all agreements are regulated, as opposed to only agreements with a balance financed of under £25k. This is primarily to protect people taking finance and having APR's and other charges hidden as these don't have to be shown on an unregulated agreement; it will also reduce how exposed dealers are of having finance deals cancelled within the 14 day 'cooling off period' as can happen with current unregulated agreements. All finance agreements will now also have to be signed on licensed premises which is a complete pain in the ass!!

It is not a sign of the credit crunch just and other intervention of the government on people trying to make money.

[Sarnie]

matc said:

This change has been brought in by the FSA to ensure all agreements are regulated, as opposed to only agreements with a balance financed of under £25k. This is primarily to protect people taking finance and having APR's and other charges hidden as these don't have to be shown on an unregulated agreement; it will also reduce how exposed dealers are of having finance deals cancelled within the 14 day 'cooling off period' as can happen with current unregulated agreements. All finance agreements will now also have to be signed on licensed premises which is a complete pain in the ass!!

It is not a sign of the credit crunch just and other intervention of the government on people trying to make money.

Why do all finance agreements need to be signed on licenced premises? I provided regulated products (mortgages etc) that do not need to be signed on licensed premises?

[matc]

With a mortgage you still have a 'cooling off' period, but with a regulated agreement the contract cannot be cancelled once the finance company has paid out. This is vital if your selling a car as you need immediate payment from the finance company, and regulated agreements allow contracts to be signed when collecting the car.

[CUE99T]

The document I seen had actual info related to the current unstable markets, but I agree it is related to the CCA of 25k.

[steven f]

sorry but finance is an illusion of wealth

[Sarnie]

steven f said:

sorry but finance is an illusion of wealth

If so, then thats applicable to mortgages, which are certainly not illusions of wealth.

[Nigelo]

steven f said:

sorry but finance is an illusion of wealth

What a peculiar statement - Are you a fanatic or some neo communist?

I've never used any form of finance to buy a car or any other depreciating asset and frankly never will. However, there is no "illusion" about affording the repayments complete with the ripoff rates most get charged. Could be that some individuals are blessed with a substantial private income but cannot get their hands on the Trust's assets en bloc.

Think before you write FFS.

[kryten22uk]

jonny5 said:

just balanced payments, they will offer fixed rate deals and something to do with a 'rule of 78' which does not attract any extra months penalty interest and so will be a similar figure to a variable rate settlement. believe the date is April 5th

What will this realistically mean for the end user? Will cost of car finance rise dramatically due to finance houses putting a high margin in their fixed rates? Or will there be more competition for business as everyone is selling fixed rate business which is more easily comparable?

For those considering finance in near future, is it worth "diving in" prior to 5 April?

Edited by kryten22uk on Tuesday 25th March 12:52

[matc]

kryten22uk said:

jonny5 said:

just balanced payments, they will offer fixed rate deals and something to do with a 'rule of 78' which does not attract any extra months penalty interest and so will be a similar figure to a variable rate settlement. believe the date is April 5th

What will this realistically mean for the end user? Will cost of car finance rise dramatically due to finance houses putting a high margin in their fixed rates? Or will there be more competition for business as everyone is selling fixed rate business which is more easily comparable?

For those considering finance in near future, is it worth "diving in" prior to 5 April?

Edited by kryten22uk on Tuesday 25th March 12:52

I don't think finance houses will increase their margins drastically, I think if anything as you mentioned business will probably become a bit more competitive as everyone will be on fixed rate deals, thus making them easier to compare. The only people it is really going to effect are the people who have used balanced payment deals in the past; as these couldn't show a true cost of money due to it being dependant on the fluctuating BOE base rates they are being targeted by the FSA. To be fair unless you were going to buy a car that lost very little money and keep it for only a short period of time like a lot of the speculators do then balanced payments is probably one of the most expensive ways to finance a car anyway, with rates typically set at 2-3% above base rate.

[BermyAndy]

Balanced payments has worked for me in the past as the ability to pay off lump sums for free meant i could be buy one year, finance for 12 months, then repay the next year when some more cash came along

In the long term, it will probably give you a 'cheaper' rate but on a product you will be tied into, or have to pay a penatly to redeem early. Then it will come down to the scale of this penalty as to whether you take out a 4 year loan (to keep monthly payments down) and repay it all next year, for example

[Caruso]

Sarnie said:

Why do all finance agreements need to be signed on licenced premises? I provided regulated products (mortgages etc) that do not need to be signed on licensed premises?

It seems like madness to me...A pub is the last place you want to be going to sign up for credit???

[Sarnie]

Caruso said:

Sarnie said:

Why do all finance agreements need to be signed on licenced premises? I provided regulated products (mortgages etc) that do not need to be signed on licensed premises?

It seems like madness to me...A pub is the last place you want to be going to sign up for credit???

Sounds like the perfect place to have an office to me

[F355GTS]

I understand that you can still have a balanced payments arrangement but you have to nominate to be excluded from the protection of the Consumer Credit Act and earn over £150k per annum

[MattNM3E36]

CUE99T said:

The document I seen had actual info related to the current unstable markets, but I agree it is related to the CCA of 25k.

If looking at personal agreements, the 25k limit is being removed by the Consumer Credit Act 2006 (not exactly sure when that change took/is taking place - could be in force now?)

[matc]

MattNM3E36 said:

CUE99T said:

The document I seen had actual info related to the current unstable markets, but I agree it is related to the CCA of 25k.

If looking at personal agreements, the 25k limit is being removed by the Consumer Credit Act 2006 (not exactly sure when that change took/is taking place - could be in force now?)

Comes into place April 1st. Most finance companies are also taking the opportunity to increase the doc fees.

[steven f]

Nigelo said:

steven f said:

sorry but finance is an illusion of wealth

What a peculiar statement - Are you a fanatic or some neo communist?

I've never used any form of finance to buy a car or any other depreciating asset and frankly never will. However, there is no "illusion" about affording the repayments complete with the ripoff rates most get charged. Could be that some individuals are blessed with a substantial private income but cannot get their hands on the Trust's assets en bloc.

Think before you write FFS.

i do think before i write there is loads of people on here who think they are wealthy because the drive a ferrari shame that its really owned by the finance company or lease company then there is the others with the big houses with big 100% mortages on them cash it all in then they will see how wealthy they are