It's still happening, who is controlling credit now?
Discussion
Adrian W said:
I Couldn’t believe it, went past my local Ford dealer, great big posters: -
No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the s
t.
Do you need the government to regulate how much debt you are capable of taking on?No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the s
t. With freedom comes responsibility for our own mistakes.
Keep the government out of the market and let people run their own lives as the see fit!
Adrian W said:
I Couldn’t believe it, went past my local Ford dealer, great big posters: -
No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the st.
The presance of a poster is to get people in. Do you really think they'll get these terms with the current credit issues? Probably not. "Sorry sir, you dont qualify. However, even though you cant affoord the shiney new car, I have a 3 year old focus that only been driven to the moon and back on 23% apr...."No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the s
t. Fittster said:
Adrian W said:
I Couldn’t believe it, went past my local Ford dealer, great big posters: -
No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the st.
Do you need the government to regulate how much debt you are capable of taking on?No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the s
t. With freedom comes responsibility for our own mistakes.
Keep the government out of the market and let people run their own lives as the see fit!
Fittster said:
Adrian W said:
I Couldn’t believe it, went past my local Ford dealer, great big posters: -
No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the st.
Do you need the government to regulate how much debt you are capable of taking on?No deposit, 5 years to pay and cashback
Are people really this stupid, I thought someone was supposed to be regulating credit, to avoid us getting even deeper in the s
t. With freedom comes responsibility for our own mistakes.
Keep the government out of the market and let people run their own lives as the see fit!
My main issue is that after say 3 years the outstanding balance on the agreement is going to be considerably more than the car is worth, im not sure what a resonable amount of time is but there has to be a point where the item should be worth more than the outstanding balance of finance on it.
I thought one of the big problems the banks are having is concerning the depreciating value of their security, so how does this work in this case?
Adrian W said:
Bit late for that, we as a population have already shown we are incapable of controlling ourselves.
Have we? Really? Some people got 110% mortgages and crazy self certs, but these were the minority. The majority of the banking problems at the moment are coming from huge swaithes of US mortgages and loans (which WERE irresponsibly given/taken out) being sold off again and again, until they sit on our banks books. Sure we have some bad/irresponsible debt but this isnt actually the problem we are facing at the moment (IMO)Adrian W said:
My main issue is that after say 3 years the outstanding balance on the agreement is going to be considerably more than the car is worth, im not sure what a resonable amount of time is but there has to be a point where the item should be worth more than the outstanding balance of finance on it.
If its a straight forward finance deal, with no ballon, they will be paying off 20% a year. After 3 years only 40% will remain. I don't know the focus market, but this doesnt seem too unreasonable (maybe about right).Edited by Maxf on Friday 17th October 11:01
Credit is a useful tool, if used correctly. I was offered 0% on a new Ninja the other week, as I could easily afford it, have never missed a payment, and have no real outstanding loans etc.
On the other hand, I've seen HP applications from people with 90k of unsecured debt. These are the people who are going to end up in a world of hurt. All they know is borrowing to obtain what they need, and that has effectively stopped.
On the other hand, I've seen HP applications from people with 90k of unsecured debt. These are the people who are going to end up in a world of hurt. All they know is borrowing to obtain what they need, and that has effectively stopped.
Maxf said:
If its a straight forward finance deal, with no ballon, they will be paying off 20% a year. After 3 years only 40% will remain. I don't know the focus market, but this doesnt seem too unreasonable (maybe about right).
Interesting perspective, so you think this level of finance on a rapidly depreciating asset is acceptable, maybe I’m wrong and all of the people who take up this offer are going to pay until the end of the agreement long after they realise that they are paying for a car that is virtually worthless and they are unable to trade for something else.Funny but last time they were in the s
t Ford leased cars at a huge loss and gave the lease companies guaranteed 3 year buybacks, just to keep things moving, funny their not offering this to the public. Maybe it is me!
anonymous said:
[redacted]
:cynical mode on:
Tis bloody easy to make yourself bankrupt these days, AND it only lasts 12 months. And if you are not working/earning enough to have in IPA slapped on you for the following 36 months, then they can't do it retrospectively either 
So, get obscene amount of credit, jack your job, go on the dole, apply for bankruptcy, prove you can't live on your income and Bob's your uncle.
Hmm,
I think I missed a trick here, shame I'm so bloody honest 
Maxf said:
Adrian W said:
Bit late for that, we as a population have already shown we are incapable of controlling ourselves.
Have we? Really? Some people got 110% mortgages and crazy self certs, but these were the minority. The majority of the banking problems at the moment are coming from huge swaithes of US mortgages and loans (which WERE irresponsibly given/taken out) being sold off again and again, until they sit on our banks books. Sure we have some bad/irresponsible debt but this isnt actually the problem we are facing at the moment (IMO)Adrian W said:
My main issue is that after say 3 years the outstanding balance on the agreement is going to be considerably more than the car is worth, im not sure what a resonable amount of time is but there has to be a point where the item should be worth more than the outstanding balance of finance on it.
If its a straight forward finance deal, with no ballon, they will be paying off 20% a year. After 3 years only 40% will remain. I don't know the focus market, but this doesnt seem too unreasonable (maybe about right).Badgerboy said:
Most firms will not touch anyone who had been near an IVA as long as it was on their record. Used to piss off quite a few customers who thought they should still be able to have that shiny BMW. The mind boggled.
Tis on your record for 5 years, same as the Bankruptcy.I did my IVA because I wanted to pay it all back, I could afford to afterall
Just that the bank were not playing ball with DDs going out on the days they were supposed to When the IVA Co made me bankrupt for missing 3 payments (not working doesn't give you a payment holiday), the Insolvency Practitioner told me I should have saved myself some heartache/money and just made myself bankrupt in the first place.
Tony*T3 said:
The presance of a poster is to get people in. Do you really think they'll get these terms with the current credit issues? Probably not. "Sorry sir, you dont qualify. However, even though you cant affoord the shiney new car, I have a 3 year old focus that only been driven to the moon and back on 23% apr...."
Look here http://www.gates.co.uk/Ford/finance.shtmlAdrian W said:
Maxf said:
If its a straight forward finance deal, with no ballon, they will be paying off 20% a year. After 3 years only 40% will remain. I don't know the focus market, but this doesnt seem too unreasonable (maybe about right).
Interesting perspective, so you think this level of finance on a rapidly depreciating asset is acceptable, maybe I’m wrong and all of the people who take up this offer are going to pay until the end of the agreement long after they realise that they are paying for a car that is virtually worthless and they are unable to trade for something else....
Maybe it is me!
You said they would owe much more than it is worth at the 3-year point. I disagree (unless there is a balloon - when they would). 40% of new price for a 3 year old car sounds OKish.
Most people are still 'good', IMO. The vast majority will keep paying.
Now, if you'd said the above but at 19% APR (for example), I'd agree with every word you say. But 0% finance can make perfect sense.
Kieran XJR said:
I don't think we can just blame the states, last time I checked UK comsumer debt was about £1.6 trillion, higher than our GDP. I think the US were/are simply further down the road than us.
I think our consumer debt is a different problem which is being dragged into the limelight as banks stop lending and increase borrowing rates because of the US loan problems.Of course a borrowing above GDP is a problem - but as long as it gets paid it isnt a huge one. The problem now is that because of the lack of confidence in the banking system (largely caused by the US subprime loan issues), these people are being pushing into not being able to afford repayments, and default.
johnfm said:
For some people, credit is not dangerous nor reckless.
Do you expect everyone to walk into car dealerships and pay cash for cars?
In the wise words of my long deceased Dad, "If you can't pay cash then you can't afford it". Only exception was a mortgage, and his advise on that was, "when calculating whether you can afford the mortgage assume an interest rate 4% above what it is now".Do you expect everyone to walk into car dealerships and pay cash for cars?
I have followed that advise, never had any debts and paid our mortgage off early. I have never had a new car (except company supplied) and don't own a large flat screen television, but I have never had money worries. If I wanted something I saved up the money for it. I haven't wasted money on interest, or on high deprectiion on new cars, and so now if I really want something I have the money in the bank to just buy it.
A little self-control in money matters in tjhe early years definitely makes life easier later on.
Todays 'must-have now' culture financed on credit is bound to bite some people later on.
Edited by Glosphil on Friday 17th October 11:41
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