Seems to be gathering momentum

[Deleted member 6183]

This isn't about the rights and wrongs of car finance but I've said for years that the way that it's sold n looking at.

Some 2.5 million UK motorists trapped in car finance deals | This is Money

 

[clk320x]

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

 

[neilrr]

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

 

[markjay]

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?

 

[markjay]

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

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.

 

[kianok]

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

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

 

[AltonAnt]

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.

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[clk320x]

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

Then they feel ‘trapped’... READ before signing the dotted line..

 

[markjay]

Then they feel ‘trapped’... READ before signing the dotted line..

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.

 

[Deleted member 6183]

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?

 

[markjay]

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).

 

[Bobby Dazzler]

This isn't about the rights and wrongs of car finance but I've said for years that the way that it's sold n looking at.

Some 2.5 million UK motorists trapped in car finance deals | This is Money

That particular article is really just an advert for Drover.

 

[Deleted member 6183]

That particular article is really just an advert for Drover.

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.

 

[Deleted member 113659]

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.

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

 

[Deleted member 6183]

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

No one does.

 

[Deleted member 113659]

No one does.

Then surely the responsibility lies with them.

 

[219]

This isn't about the rights and wrongs of car finance but I've said for years that the way that it's sold n looking at.

Some 2.5 million UK motorists trapped in car finance deals | This is Money

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 .

 

[AltonAnt]

Then surely the responsibility lies with them.

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.

 

[Deleted member 37751]

This isn't about the rights and wrongs of car finance but I've said for years that the way that it's sold n looking at.

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..

 

[Deleted member 37751]

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.

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.