Car finance armageddon is coming !
Discussion
http://www.thisismoney.co.uk/money/cars/article-60...
Well not exactly the end of the world but this is getting more national awareness than just the PH, hot topic of the week debate.
Well not exactly the end of the world but this is getting more national awareness than just the PH, hot topic of the week debate.
“People are locked into their cars and have no option but to refinance a new one”. Not exactly, they can hand it back at the end of the agreement or if lucky sell and retain the equity.
Next step is a cheap used car or get on one of those big red things that stops every half mile.
Problem solved
Next step is a cheap used car or get on one of those big red things that stops every half mile.
Problem solved
btdk5 said:
Of course people don’t pay the balloon at the end.
I thought that was the whole point???
That is the whole point, and the crux of the mis selling, basically there is a belief that people are not being made to understand they don’t own the car unless they pay at the end...I thought that was the whole point???
The car industry will be rocked to its core if they find that pcp is mis selling, there will be billions of compensation to be paid...
Tbf I can see where they are coming from, when we took out leaf deal, not once did the salesman explain the baloon payment, infact he fudged the baloon payment to make it such a great deal, I knew exactly what he was doing, and I knew I would never be buying the car...
It comes down to, could it be reasonably to presume that I should know that I would not be owing the car after 2 years of paying £179 a month, and would be expected to pay £18500 baloon payment if I wanted to own the car...
They are also looking at the way people can not get out of the pcp. And anyone who gets into financial difficulty has no way out
Could be a close decision
Edited by Aeschylus on Friday 10th August 08:22
The problem isn't with leasing, PCP, HP or any other form of finance be that car related or not.
The problem is that people don't take time to read - for themselves - the Terms & Conditions of the agreement or contract they are signing.
Bill for damage at the end of the lease? You should have read the clause referring you back to BVRLA guidelines for inspection.
Bill for excess miles? You should have read the clause regards cost per mile for exceeding the permitted amount.
Miffed that after 3 years of paying £300 a month you don't own the £30,000 car and you've realised that you'll never see that £3,000 deposit again? Yup, you should have read the finance agreement and, quite honestly, re-sit your GCSE maths as it isn't rocket science to work out what £3000 + £300 x 36 equals. It certainly isn't £30,000.
The problem is that people don't take time to read - for themselves - the Terms & Conditions of the agreement or contract they are signing.
Bill for damage at the end of the lease? You should have read the clause referring you back to BVRLA guidelines for inspection.
Bill for excess miles? You should have read the clause regards cost per mile for exceeding the permitted amount.
Miffed that after 3 years of paying £300 a month you don't own the £30,000 car and you've realised that you'll never see that £3,000 deposit again? Yup, you should have read the finance agreement and, quite honestly, re-sit your GCSE maths as it isn't rocket science to work out what £3000 + £300 x 36 equals. It certainly isn't £30,000.
When you look at the company that paid for the survey (Drover)
You see that they are an all inclusive soft of scheme, that is your servicing and insurance are covered (or trapped as that's they seem to be describing PCP deals)
Hyundai i10 works out as £292 per month for 12 months if aged 25+ or £475 if aged 21-24
Like most finance options one thing doesn't work for all - I guess for someone the above might work but doesn't look like an alternative to me lol
You see that they are an all inclusive soft of scheme, that is your servicing and insurance are covered (or trapped as that's they seem to be describing PCP deals)
Hyundai i10 works out as £292 per month for 12 months if aged 25+ or £475 if aged 21-24
Like most finance options one thing doesn't work for all - I guess for someone the above might work but doesn't look like an alternative to me lol
snorkel sucker said:
The problem isn't with leasing, PCP, HP or any other form of finance be that car related or not.
The problem is that people don't take time to read - for themselves - the Terms & Conditions of the agreement or contract they are signing.
Bill for damage at the end of the lease? You should have read the clause referring you back to BVRLA guidelines for inspection.
Bill for excess miles? You should have read the clause regards cost per mile for exceeding the permitted amount.
Miffed that after 3 years of paying £300 a month you don't own the £30,000 car and you've realised that you'll never see that £3,000 deposit again? Yup, you should have read the finance agreement and, quite honestly, re-sit your GCSE maths as it isn't rocket science to work out what £3000 + £300 x 36 equals. It certainly isn't £30,000.
Responsibility does fall with the person signing the contract but there has to be a certain amount of responsibility with regard to people understanding financing also falls on the people selling these deals.The problem is that people don't take time to read - for themselves - the Terms & Conditions of the agreement or contract they are signing.
Bill for damage at the end of the lease? You should have read the clause referring you back to BVRLA guidelines for inspection.
Bill for excess miles? You should have read the clause regards cost per mile for exceeding the permitted amount.
Miffed that after 3 years of paying £300 a month you don't own the £30,000 car and you've realised that you'll never see that £3,000 deposit again? Yup, you should have read the finance agreement and, quite honestly, re-sit your GCSE maths as it isn't rocket science to work out what £3000 + £300 x 36 equals. It certainly isn't £30,000.
I had the misfortune of replacing MrsNPs car recently and it was blatantly obvious in quite a few garages that the salesmen didn't really understand some of the finance routes they were offering. Add in the terminology which doesn't appear to be standardised across the industry (PCP, PCH, HP, some branding their PCP as "options" etc) and it's clear to see how customers and the folk selling it can be confused. I actually found myself correcting a few of the sales folk I spoke to so I wouldn't be shocked if the industry got hit with "miss-selling"
I think even before all the finance routes were available your average Joe found buying a new car a baffling world. Easy to forget this as a PHer.
fourstardan said:
What most people don't realise is what charges they are being bunged with at the end of a lease.
2018 was the year I left leasing and probably won't look back unless I lose my head, get irrational and want a brand new car to show off to everyone with.
Snap!2018 was the year I left leasing and probably won't look back unless I lose my head, get irrational and want a brand new car to show off to everyone with.
It's had it's day. Driving brand new 300bhp+ cars for less than £250pm was great while it lasted but the boat has sailed and I won't be paying £300pm to drive a boring turd of a car just because I'm used to leasing
I agree there needs to be some responsibilty on both sides, but if you're offered the chance to "own" a car you could never actually afford to buy, surely alarm bells have to ring. Maybe the temptation is just too much.
I don't understand the ins and outs of car finance but I know that behind every finance scheme, someone is making money. You can pretty much guarantee it's not the customer.
I don't understand the ins and outs of car finance but I know that behind every finance scheme, someone is making money. You can pretty much guarantee it's not the customer.
How fragile The ego's these people must be who want to be seen in a car they cannot in reality afford...then after ramping it around for 3 yrs don't want to meet the commitments they signed for?
Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
RAFsmoggy said:
How fragile The ego's these people must be who want to be seen in a car they cannot in reality afford...then after ramping it around for 3 yrs don't want to meet the commitments they signed for?
Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
I wanted to stand up and cheer this but I'm at work so have to be discreet.Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
RAFsmoggy said:
How fragile The ego's these people must be who want to be seen in a car they cannot in reality afford...then after ramping it around for 3 yrs don't want to meet the commitments they signed for?
Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
Exactly. If you don't own your car you are a shallow and insecure knob trying to impress the neighbours. Same if you don't own your phone. You probably can't afford it either, you sad pauper with no pension provisions either who will singlehandedly destroy the economy and the jobs of those who are micro-economics experts and own their car (and phone). So unfair.Look at me ...well yes we do , I see a Knob who is trying to be something they are not...double knob as they are paying to look like a knob while living at home with MOM...Category of the fake watch, replica cars brigade & general shallow idiot brigade !
Edited by nickfrog on Friday 10th August 12:47
fourstardan said:
What most people don't realise is what charges they are being bunged with at the end of a lease.
What charges? I never had any. From people's experience on PH, the charges for damage tend to be lower than on the open market for repairs so that seems more than fair as it simply reflects the impact on the value of the car. Gassing Station | Car Buying | Top of Page | What's New | My Stuff