PCP payment holiday

[Dixy]

To the victor the spoils.

[Taylor James]

av185 said:

Looks like someone actually watched Waterworld then.

Nah, not a Costner fan, just trying to develop the analogy.

If things continue to fall apart, there'll be no safe spaces, index linked pensions, multiple Directorships or anything else. Smugness will be a welcome casualty.

[av185]

Roger Irrelevant said:

I thought the money was always invested in some vaguely-specified-but-guaranteed-to-be-fantastically-profitable-no-matter-what 'business' of some sort. So it'll be fine; no payment holiday required.

Someone once said most were making at least 40%.

[av185]

anonymous said:

[redacted]

Correct C, problem is Chicken Dinner has currently pcpd out the family brain cell on very low 'mumflies' lol.

[Taylor James]

anonymous said:

[redacted]

For a few months maybe...then what?

[vikingaero]

100 said:

how can you pcp a car and not be able to afford monthlies during this time!?

Simple. A lot of people live month to month. No savings but plenty of bills. Plenty of my friends and colleagues do the same. Each months pay is accounted for each month, and now that CV19 has hit, there is no job and no income, and no 80% in their bank balance right now.

[av185]

Welcome to the wonderful world of subscription economics.

What could possibly go wrong.

[Taylor James]

anonymous said:

[redacted]

Indeed hopefully, but if not the present actions are not sustainable.

[theboss]

I’d be far more comfortable defaulting on a PCP or lease in the current situation than attempting to release money tied up in an expensive car bought with cash.

[Taylor James]

theboss said:

I’d be far more comfortable defaulting on a PCP or lease in the current situation than attempting to release money tied up in an expensive car bought with cash.

Rock and a hard place I suppose. Your credit history versus your wallet.

[theboss]

Taylor James said:

Rock and a hard place I suppose. Your credit history versus your wallet.

Depending on how bad things get generally, impacted credit history might well be the least of one’s problems.

[vikingaero]

Taylor James said:

theboss said:

I’d be far more comfortable defaulting on a PCP or lease in the current situation than attempting to release money tied up in an expensive car bought with cash.

Rock and a hard place I suppose. Your credit history versus your wallet.

It really depends on your reserves and circumstances. Someone who rents, works in financial services, needs a contract phone etc etc could find themselves flummoxed for years if they default.

[anonymous-user]

learn to save and avoid crap like pcp... live within your means and be grateful for what you have as you'll sleep easier at night.

it's all a big illusion (to yourself) otherwise

Edited by anonymous-user on Saturday 28th March 14:39

[Terminator X]

Taylor James said:

Rock and a hard place I suppose. Your credit history versus your wallet.

If you believe the doom mongers we have 12 months of this if not longer, the world will never be the same etc etc. Surely a few months ish of poor credit history will be way back there as something to worry about?

TX.

[MDMA .]

theboss said:

I’d be far more comfortable defaulting on a PCP or lease in the current situation than attempting to release money tied up in an expensive car bought with cash.

I think you'll find the ones with expensive metal on the drive (paid for), aren't that worried at the moment.

[Taylor James]

Terminator X said:

Taylor James said:

Rock and a hard place I suppose. Your credit history versus your wallet.

If you believe the doom mongers we have 12 months of this if not longer, the world will never be the same etc etc. Surely a few months ish of poor credit history will be way back there as something to worry about?

TX.

By chance I have become quite well acquainted with issues around credit history, mortgages and loans, etc. Poor credit history is now a major issue for people but unless you have needed to borrow in recent years you won't have noticed. I think that if this goes on for 12 months or more - and I can't see how the repercussions won't far outlast 12 months - then credit history may not matter so much. The vast degree of defaulting will provide a herd immunity of sorts.

[Plate spinner]

Taylor James said:

Terminator X said:

Taylor James said:

Rock and a hard place I suppose. Your credit history versus your wallet.

If you believe the doom mongers we have 12 months of this if not longer, the world will never be the same etc etc. Surely a few months ish of poor credit history will be way back there as something to worry about?

TX.

By chance I have become quite well acquainted with issues around credit history, mortgages and loans, etc. Poor credit history is now a major issue for people but unless you have needed to borrow in recent years you won't have noticed. I think that if this goes on for 12 months or more - and I can't see how the repercussions won't far outlast 12 months - then credit history may not matter so much. The vast degree of defaulting will provide a herd immunity of sorts.

In that case I reckon though the herd will then always pay more for borrowing in the future vs those with clean credit.
Financial institutions have long memories and genuinely don’t like people who are sketchy about paying them back on time. Well they do... because they charge them more.

[theboss]

MDMA . said:

I think you'll find the ones with expensive metal on the drive (paid for), aren't that worried at the moment.

Of course, those who happened to buy their cars with cash don’t have to worry about the decimation of whole industries and livelihoods or the fact that the value of assets may have just collapsed, they can gaze out of their window and admire their pride and joy in total security and confidence....

[C4ME]

I just do not get this sniffy attitude to buying cars on PCP, comments about 'on the never never' and the sort of glee some are projecting over others now getting into difficulty.

Do we all have 3 years worth payments for mortgage, mobile contract, broadband, electricity and gas, food, petrol, child rearing costs etc sitting in our banks? You plan life on the expected, prudently taking account of possible downsides when making financing decisions but to think people should factor in a once in 100 years event into every decision they make in life is daft.

Look at all the businesses now sitting on 5 year property leases with potentially no income to fund their rental. Nobody is saying they were dumb taking on that commitment so why does PCP seem to have such stigma?

[Andy-6ufnp]

So, lots of people clearly don't like PCP but I chose it as the best route for the vehicle I was buying, it gave me an exact cost over a given period and a way out at the end without resorting to SOR or chopping in for another car which I may or may not be looking for.
I asked if there was a payment holiday, not because I'm in any trouble but as I happen to like my new car a lot, I figured I might be able to 'extend' the term by a few months. After all two years is quick to fly by and I'm going to lose quite a lot of use this summer for one reason or another so an extended term would be welcome. Mortgages are on hold for people in trouble or not so why not car finance too, you can only ask.
Oh, and by the way I don't have a mortgage, no debt and cash in the bank as I've been one the prudent one's but I still consider PCP a good route to buy depending on several factors i.e make of car, projected future value uncertainty and ease of disposal. But of course, each to their own.
My particular car depreciates like a stone and with the rise in volume of super cars being manufactured with many more being announced means uncertain residuals, main dealers not buying stock, unless for a low ball offer, even more so now, and I hate selling cars privately so for me PCP rocks!