Are the wheels about to fall of car finance?
Discussion
valiant said:
Whilst unemployment will rise, it is fair to point out that there will still be plenty people in jobs and pretty secure ones at that. People will still need cars and will need financing for them and will have no problem meeting those commitments.
Yes, the market will contract but collapse? Not a chance.
This is a PH PCP thread Yes, the market will contract but collapse? Not a chance.
There is absolutely no place for reasoned though of that nature
Sa Calobra said:
They may offer enticing deals but people are going to be very cautious until they personally feel like an effective vaccine is out there en masse.
Yes. That is going to be the problem.I stuck a link in earlier there earlier tongue in cheek, but i see BrewDog are already offering a "Have a drink on us" Free pint deal for when the restrictions are lifted, as i think they are well aware that getting people out (and in their case in to bars) and spending money again is going to be hard.
valiant said:
Whilst unemployment will rise, it is fair to point out that there will still be plenty people in jobs and pretty secure ones at that. People will still need cars and will need financing for them and will have no problem meeting those commitments.
Yes, the market will contract but collapse? Not a chance.
Absolutely. I said it three years ago when this thread started, and in the many before it. The wheels will not fall off car finance even though the hand wringers want to see the people who use it "punished" in some way.Yes, the market will contract but collapse? Not a chance.
Those hardest hit by this are not going to be those with PCP deals.
Throttlebody said:
Car finance has evolved into an irreversible facility for the majority, but it will get a good reaming out going forward. A combo of self imposed tighter underwriting of risk and a touch more regulation is inevitable.
"irreversible"??? 
If people couldnt get a cracking deal on a new car they'd get a second hand car. Simples.
There wont be a "self imposed tighter underwriting of risk" - the manufactures need to sell cars to keep the factories at maximum capacity and maintain market share. They'll do what they need to to maintain that.
Throttlebody said:
Car finance has evolved into an irreversible facility for the majority, but it will get a good reaming out going forward. A combo of self imposed tighter underwriting of risk and a touch more regulation is inevitable.
A touch more regulation????I thought you were telling us that the FCA had made a damning indictment of the new car market and they were going to beat the sales people in to shape?
Now its a "touch more regulation"
Deep Thought said:
Throttlebody said:
Car finance has evolved into an irreversible facility for the majority, but it will get a good reaming out going forward. A combo of self imposed tighter underwriting of risk and a touch more regulation is inevitable.
"irreversible"??? If people couldnt get a cracking deal on a new car they'd get a second hand car. Simples.
There wont be a "self imposed tighter underwriting of risk" - the manufactures need to sell cars to keep the factories at maximum capacity and maintain market share. They'll do what they need to to maintain that.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
Deep Thought said:
Throttlebody said:
Car finance has evolved into an irreversible facility for the majority, but it will get a good reaming out going forward. A combo of self imposed tighter underwriting of risk and a touch more regulation is inevitable.
A touch more regulation????I thought you were telling us that the FCA had made a damning indictment of the new car market and they were going to beat the sales people in to shape?
Now its a "touch more regulation"
Throttlebody said:
Deep Thought said:
Throttlebody said:
Car finance has evolved into an irreversible facility for the majority, but it will get a good reaming out going forward. A combo of self imposed tighter underwriting of risk and a touch more regulation is inevitable.
"irreversible"??? If people couldnt get a cracking deal on a new car they'd get a second hand car. Simples.
There wont be a "self imposed tighter underwriting of risk" - the manufactures need to sell cars to keep the factories at maximum capacity and maintain market share. They'll do what they need to to maintain that.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
And you need to understand, car financing has been around for over 100 years now. Its not a new thing.
Throttlebody said:
Understand what has been said.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
You’d have lost your s‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
t and probably chucked something at the TV if you had been watching Bloomberg yesterday.Quite an extensive piece from a US analyst suggesting that the “golden age of credit” is likely to extend significantly as part of the way forward.
Brooking10 said:
Throttlebody said:
Understand what has been said.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
You’d have lost your s‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
t and probably chucked something at the TV if you had been watching Bloomberg yesterday.Quite an extensive piece from a US analyst suggesting that the “golden age of credit” is likely to extend significantly as part of the way forward.
Throttlebody said:
Brooking10 said:
Throttlebody said:
Understand what has been said.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
You’d have lost your s‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
t and probably chucked something at the TV if you had been watching Bloomberg yesterday.Quite an extensive piece from a US analyst suggesting that the “golden age of credit” is likely to extend significantly as part of the way forward.
Dear God man.
You need to find something else to think about if that's truly how you see the world.
Brooking10 said:
Throttlebody said:
Brooking10 said:
Throttlebody said:
Understand what has been said.
‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
You’d have lost your s‘Facility’ - place, amenity, or piece of equipment provided for a particular purpose.
t and probably chucked something at the TV if you had been watching Bloomberg yesterday.Quite an extensive piece from a US analyst suggesting that the “golden age of credit” is likely to extend significantly as part of the way forward.
Dear God man.
You need to find something else to think about if that's truly how you see the world.
Deep Thought said:
Throttlebody said:
Can’t deny that. The credit war will never be won, just a few battles on the way. CV19 is going to be a mother of a battle.
You've waged war on credit have you?From your mums spare room?
Out of curiosity - why?
Having posed the questions, you can now postulate the answers. Standard Operating ProcedureBrooking10 said:
Throttlebody said:
Hyperbole.
Indeed, you have mastered it.for things the make do and mend ... why do people worry if some rent their cars and buy shoddy furniture on the never never ???
I don't think it matters, the government will always bail out the financial sector and that includes the banks too big to fail and all that ..
Does it need saying again 
There is nothing inherently wrong with credit, although a case can be made against governments for allowing consumer credit to expand to boost the economy rather than providing incentives for investment. It is valuable for people whose income allows them to pay for a car even if they don't have a capital sum sufficient to buy one outright. Sub prime lending is a different thing, but that is more the Brighthouse and payday loans side of the credit industry not the credit for new cars.
. Look at any PCP offer, the interest will only be a relatively small proportion of the total cost, depreciation is the real killer, especially when it is 'hidden' in a monthly payment. Many people will accept the interest payment as a price worth paying to have the car that they want, so if the folk who take out credit keep their jobs, and there is already some evidence to suggest that is the younger and unskilled who are losing theirs not the more credit worthy, then car finance may take a knock but not a body blow.
There is nothing inherently wrong with credit, although a case can be made against governments for allowing consumer credit to expand to boost the economy rather than providing incentives for investment. It is valuable for people whose income allows them to pay for a car even if they don't have a capital sum sufficient to buy one outright. Sub prime lending is a different thing, but that is more the Brighthouse and payday loans side of the credit industry not the credit for new cars.. Look at any PCP offer, the interest will only be a relatively small proportion of the total cost, depreciation is the real killer, especially when it is 'hidden' in a monthly payment. Many people will accept the interest payment as a price worth paying to have the car that they want, so if the folk who take out credit keep their jobs, and there is already some evidence to suggest that is the younger and unskilled who are losing theirs not the more credit worthy, then car finance may take a knock but not a body blow.
Justin Case said:
Does it need saying again There is nothing inherently wrong with credit, although a case can be made against governments for allowing consumer credit to expand to boost the economy rather than providing incentives for investment. It is valuable for people whose income allows them to pay for a car even if they don't have a capital sum sufficient to buy one outright. Sub prime lending is a different thing, but that is more the Brighthouse and payday loans side of the credit industry not the credit for new cars.
. Look at any PCP offer, the interest will only be a relatively small proportion of the total cost, depreciation is the real killer, especially when it is 'hidden' in a monthly payment. Many people will accept the interest payment as a price worth paying to have the car that they want, so if the folk who take out credit keep their jobs, and there is already some evidence to suggest that is the younger and unskilled who are losing theirs not the more credit worthy, then car finance may take a knock but not a body blow.
Commons sense and informed discussionThere is nothing inherently wrong with credit, although a case can be made against governments for allowing consumer credit to expand to boost the economy rather than providing incentives for investment. It is valuable for people whose income allows them to pay for a car even if they don't have a capital sum sufficient to buy one outright. Sub prime lending is a different thing, but that is more the Brighthouse and payday loans side of the credit industry not the credit for new cars.. Look at any PCP offer, the interest will only be a relatively small proportion of the total cost, depreciation is the real killer, especially when it is 'hidden' in a monthly payment. Many people will accept the interest payment as a price worth paying to have the car that they want, so if the folk who take out credit keep their jobs, and there is already some evidence to suggest that is the younger and unskilled who are losing theirs not the more credit worthy, then car finance may take a knock but not a body blow.
It’ll never catch on around here
powerstroke said:
Brooking10 said:
Throttlebody said:
Hyperbole.
Indeed, you have mastered it.for things the make do and mend ... why do people worry if some rent their cars and buy shoddy furniture on the never never ???
I don't think it matters, the government will always bail out the financial sector and that includes the banks too big to fail and all that ..
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