Seems to be gathering momentum

Discussion in 'OT (OFF Topic) Forums' started by DrFeelgood, Aug 11, 2018.

  1. DrFeelgood

    DrFeelgood MB Club Veteran

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  2. clk320x

    clk320x MB Club Veteran

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    Idiots who don’t budget for the balloon payment at the end.
     
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  3. neilrr

    neilrr MB Club Veteran

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    Carmageddon. It's the next international financial bubble to about to bring woe to the market, particularly in the USA.
     
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  4. markjay

    markjay MB Club Veteran

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    Surely it's obvious to everyone that finance providers are commercial organisations and expect to turn a profit on the finance deals they sell to the public?
     
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  5. markjay

    markjay MB Club Veteran

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    Car finance for private owners is a new phenomena in the UK (last 10-15 years).

    In the US it's been the norm for new car buyers since around the sixtees.
     
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  6. kianok

    kianok Hardcore MB Enthusiast

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    Why let boring stuff like affordability get in the way of the prospect of owning a portion of a shiny new car!
     
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  7. AltonAnt

    AltonAnt Hardcore MB Enthusiast

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    Some of the John Oliver videos are worth a watch. This one is on the US auto loans bubble that should blow up any time now.

     
  8. clk320x

    clk320x MB Club Veteran

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    Then they feel ‘trapped’... READ before signing the dotted line.. :D
     
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  9. markjay

    markjay MB Club Veteran

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    They have agreed to a future loss... but now they are deferring it because they can't afford the loss that they have committed to, and they don't want to lose the car either.
     
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  10. OP
    OP
    DrFeelgood

    DrFeelgood MB Club Veteran

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    Is it a future loss/debt or the wonderfully phrased Guaranteed Future Value?

    Seen the adverts?

    'We can guarantee the value of this car', sounds great eh?

    What it actually means is that you are guaranteed a debt at the end of the scheme, doesn't sound so great now eh?

    Hands up who thinks that there is no interest paid on the balloon?
     
  11. markjay

    markjay MB Club Veteran

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    Well if you don't have the cash, your options are either a new car on finance, or an older car.

    But if you do have a choice whether to take-out finance or not... the argument in favour of finance is often a dealer contribution which in real terms can mean no interest on the loan.

    (But of course, if you have the choice whether to take-out finance or not... then you can probably afford the balloon payment at the end of the lease).
     
  12. Bobby Dazzler

    Bobby Dazzler MB Club Veteran

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  13. OP
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    DrFeelgood

    DrFeelgood MB Club Veteran

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    Agree, it's known as an advertorial.

    However, the findings of the survey are very revealing. A worryingly large percentage of finance buyers have no idea what they have signed up for which tells me that the sales process is broken.
     
  14. Happytalk73

    Happytalk73 MB Club Veteran

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    Or that the buyer just simply doesn’t read the small print in the contract before signing on the dotted line?
     
  15. OP
    OP
    DrFeelgood

    DrFeelgood MB Club Veteran

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    No one does.
     
  16. Happytalk73

    Happytalk73 MB Club Veteran

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    Then surely the responsibility lies with them.
     
  17. Pontoneer

    Pontoneer MB Club Veteran

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    Precisely why I drive cars that I can afford to pay for outright and run comfortably.

    I don’t feel at all envious when I see new cars : I just think ‘there’s another one that isn’t paid for’ and 9 times out of 10 I’ll be right .

    Hell mend them .
     
  18. AltonAnt

    AltonAnt Hardcore MB Enthusiast

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    Pretty much but like the last sub-prime fiasco, the financial checks are often not adequate so credit is available for those who are likely to default.
     
  19. SPX

    SPX MB Club Veteran

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    Not just looking at - completely rewriting! We’re currently going through FCA accreditation and the level of compliance we have to adhere to is out of this world.

    Then I look at car sales and you’ve got car salesmen giving out financial advice - it’s all going to end in tears and I’d say that it’ll start to kick in next year..
     
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  20. SPX

    SPX MB Club Veteran

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    And seeing as though consumer law assumes that consumers are coming from a point of ignorance then the picture is far from rosy for the car financiers.
     

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