Wednesday, Dec 10, 2008
The Banks are filling their boots! Greece here we come!
The Times: Cost of personal loans soars!
The cheapest loan available is now 8.2 per cent – that is more than four times the base rate at 2 per cent. Experts say that providers may actually be trying to price themselves out of the market as the availability of credit continues to be squeezed
Posted by cheekie charlie @ 11:58 PM (337 views) Add Comment
2 Comments
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1. it_is_going_with_a_bang said...
Is it not the case in any market that when "perceived" availability is low that prices go higher?
Why would banking be any different?
2. str 2007 said...
Frankly I think 8% is cheap, I wouldn't lend unsecured money at that rate in this climate - would you ?
The people complain, but the fact is they were lucky to have such cheap loans in the past.
The above would mean a typical £5k car loan over 3 years would cost about £155 per month. Back in 1989 I recall paying roughly £200 per month for a similar sized loan over a similar period.
So the bank will make about £500 over 3 years less their cost of borrowing. How much do you think the car dealer would make ? (Between £500-£1000 I reckon).
There is always another option - SAVE UP.