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Pay As You Go Cars For Low Income Groups In South Wales

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http://www.bbc.co.uk/iplayer/episode/b04xstjm/super-cars-v-used-cars-the-trade-off#group=p02fv3nt

Vid 30.45 mins in

Small car dealer in Bridgend, self finances a scheme after the credit crunch made his credit sales collapse.

Drivers pay weekly, and when paid get a pin number to allow the car to drive for another week. No pin & the car won't drive

Super Cars v Used Cars: The Trade Off
Two salesmen at opposite ends of the used-car market are trading places to see if they can make it in very different parts of Britain. In London, Louis sells supercars to Britain's wealthiest car enthusiasts, while Darren flogs reliable runarounds in Bridgend, Wales. They're both at the top of their game, but they're swapping jobs, customers and bosses in a bid to meet or even beat each other's targets. Darren is blown away by his new sw@nky workplace and is overjoyed to be selling Ferraris, Jaguars and Alfa Romeos with eye-watering price tags. He only has to sell one in order to earn a big commission. Darren's used to shifting high volume, but with a fraction of the customer base he's used to it won't be easy.
In Bridgend, Louis is thrown in at the deep end - over a busy weekend it becomes clear to boss Dave that Louis's softly softly approach doesn't cut it, and potential sales drift away. Meanwhile, Darren is off to a good start when he impresses boss Joe with his knowledge of one particular Ferrari - he just has to get his head round another 39 supercars. In Wales, Louis continues to struggle until he hears one customer's heart-rending reasons for needing an affordable car, and he goes all out to get them what they want.

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http://www.bbc.co.uk/iplayer/episode/b04xstjm/super-cars-v-used-cars-the-trade-off#group=p02fv3nt

Vid 30.45 mins in

Small car dealer in Bridgend, self finances a scheme after the credit crunch made his credit sales collapse.

Drivers pay weekly, and when paid get a pin number to allow the car to drive for another week. No pin & the car won't drive

I thought that was one of the most fascinating aspects of that programme. Used car dealers are not up there with estate agents as hate figures but they don't have a great reputation;I have to say I liked the Welsh chap. He has developed or adopted a method of selling cars to the less well off that helps them and of course him. You got the impression that he really did care for his customers.

Business man of the year? I would much rather see someone like him celebrated than the usual scum.

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Probably quite expensive overall. Free papers are full of used cars advertised as £x/week. The lowest I've seen is about £20/week. Doesn't seem like bargain basement motoring to me (our car is under £20/month now). Seems pretty obvious that finance will be pricey irrespective of how much of a bargain it appears.

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I thought that was one of the most fascinating aspects of that programme. Used car dealers are not up there with estate agents as hate figures but they don't have a great reputation;I have to say I liked the Welsh chap. He has developed or adopted a method of selling cars to the less well off that helps them and of course him. You got the impression that he really did care for his customers.

Business man of the year? I would much rather see someone like him celebrated than the usual scum.

+1 , though I haven't seen the terms the borrowers are getting

compare it to the US bankers / Wall st investers milking the poor who need cars.. (I posted about this, but cannot find link at the mo)

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Wasn't one of the used cars on the PAYD scheme about £50/week or so? I thought that was a bit pricey when I saw it.

That would be c. 26k over 10 years. Expensive way to pay for an old car.

Whichever way you cut it, the poor are kept in their place.

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Good prog that.

Even the Ferrari sales guy had to drive 90 minutes home to Andover every night.

Bemoaned his lot.

All decent types doing their best i thought.

That was when he got a clear run too...If there's a contraflow on the M3 or an accident, I bet you'd be looking at double that...luck of the draw...Unless the job paid a million quid a year, I wouldn't do a 3 or 4 hour commute ever day...

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Ford are expecting to see self drive cars on the road in about five years- if this actually happens we could see a viable form of pay as you go motoring in the form of constantly circulating self driving fleets that you just summon via a phone app.

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He has developed or adopted a method of selling cars to the less well off that helps them and of course him. You got the impression that he really did care for his customers.

The electricity companies are nice chaps too. They operate a similar system that helps the poor (especially renters) whereby you only get electricity when you top up the key that operates the meter. Handy, but of course those that can pay with direct debit get a much better deal.

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That was when he got a clear run too...If there's a contraflow on the M3 or an accident, I bet you'd be looking at double that...luck of the draw...Unless the job paid a million quid a year, I wouldn't do a 3 or 4 hour commute ever day...

Been there, its not pretty.

Not as if he would probably have to encounter the M25 if coming from Sarf West London.

Sometimes you just sit there and whimper in to the satnav.

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That would be c. 26k over 10 years. Expensive way to pay for an old car.

Whichever way you cut it, the poor are kept in their place.

Wonga Wheels ?

Car Converters ?

I found the article on the US

In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates

http://dealbook.nytimes.com/2014/07/19/in-a-subprime-bubble-for-used-cars-unfit-borrowers-pay-sky-high-rates/?_r=0

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That would be c. 26k over 10 years. Expensive way to pay for an old car.

Whichever way you cut it, the poor are kept in their place.

That's not a permanent running cost though is it?

Even so, cars are relatively cheap in the UK. It's probably safer ground to say the government is keeping people off the road what with tax, insurance and fuel duty.

And this isn't a wind-up but when I'm in South Wales I peruse the local papers and I wouldn't say that compact cars are the most competitive, which could tie in with their credit model. But maybe that's a regional thing now and used cars appear cheaper in the North West.

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Looking at the sold prices on ebay for 2002 VW Golf, the customer in Wales with 2 heart attacks paid a lot for his car. Was it £2200 / £2500 he paid ?

http://www.ebay.co.uk/sch/Volkswagen-/9873/i.html?_from=R40&_dcat=9873&Model%2520Year=2002&LH_Complete=1&LH_Sold=1&_nkw=vw+golf&LH_PrefLoc=1&_ipg=200&rt=nc

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Wasn't one of the used cars on the PAYD scheme about £50/week or so? I thought that was a bit pricey when I saw it.

I recall that the repayments of 50 quid a week were for a year, at which point the loan was paid off, so car cost 2600. If you can see the sticker price, you can calculate the APR

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I recall that the repayments of 50 quid a week were for a year, at which point the loan was paid off, so car cost 2600. If you can see the sticker price, you can calculate the APR

Looking at the sold prices on ebay for 2002 VW Golf, the customer in Wales with 2 heart attacks paid a lot for his car. Was it £2200 / £2500 he paid ?

http://www.ebay.co.uk/sch/Volkswagen-/9873/i.html?_from=R40&_dcat=9873&Model%2520Year=2002&LH_Complete=1&LH_Sold=1&_nkw=vw+golf&LH_PrefLoc=1&_ipg=200&rt=nc

Wasn't one of the used cars on the PAYD scheme about £50/week or so? I thought that was a bit pricey when I saw it.

Rewatched vid, its 38.20 in.

http://www.bbc.co.uk/iplayer/episode/b04xstjm/super-cars-v-used-cars-the-trade-off#group=p02fv3nt

Sticker price was £2900 . He paid £300 deposit & £50 odd a week for a yr. so he paid full price for a 12 yr old Golf that can't be worth much more than £1200 if bought straight.

So much for the salesmans heart felt ramblings. After doing the figures , I take back my +1 earlier as added in haste.

Of course it could be a later car on a private plate, but I very much doubt it

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Been quite a few of these 'heartwarming' tales of local busineses selling sofas/electricals/kitchens, or whatever, on the drip when the nasty banks stopped lending. Cameras are never there when payments are missed and they go mobhanded to snatch the telly back.

On here there's always a lot of umbrage over people not paying money back and IVAs but, any business offering credit is ultimately trying to get their claws into a customers future earnings to line their own pockets further.

Not sure the car is a rip off though something that would make £1000 on ebay would sound about right at £1995 sticker price on a used car dealer's forecourt.

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Been quite a few of these 'heartwarming' tales of local busineses selling sofas/electricals/kitchens, or whatever, on the drip when the nasty banks stopped lending. Cameras are never there when payments are missed and they go mobhanded to snatch the telly back.

On here there's always a lot of umbrage over people not paying money back and IVAs but, any business offering credit is ultimately trying to get their claws into a customers future earnings to line their own pockets further.

Not sure the car is a rip off though something that would make £1000 on ebay would sound about right at £1995 sticker price on a used car dealer's forecourt.

The Bank of Dave - on Channel 4 was similar...The bloke would underwrite the loans himself...He said that he had a low default rate, as the people felt that someone had actually put some faith in them, when a mainstream bank wouldn't, so they were more likely to pay it back.

A lot of people are just happy to be approved for a loan, so they feel that they are "pushing it" if they attempt to haggle..

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 Sub-prime cars: are car loans driving us towards the next financial crash?

https://www.theguardian.com/money/2017/feb/10/are-car-loans-driving-us-towards-the-next-financial-crash

 

Are these Pcp loans taken by folks who can't get bank loans to buy a car? It makes no sense to me.

 I did comparative figures for a £20k vehicle. It cost £6K more via pcp after i sold a bank loan car at market rate  after 4 yrs (after pcp would have ended) ! 

 

It all started in the USA.....

Uh-oh: auto loan delinquencies hit a new high

http://www.thecarconnection.com/news/1108972_uh-oh-auto-loan-delinquencies-hit-a-new-high 

A third of America's cars are underwater: Is yours?

http://www.thecarconnection.com/news/1107349_a-third-of-americas-cars-are-underwater-is-yours

 

Quote

Last month, the Bank of England warned that consumer credit, including car loans, was close to levels not seen since the 2008 financial crash. Credit agency Experian, which monitors personal indebtedness, told the Guardian that “the number of PCPs overall has increased fivefold (394%) over the last five years”.

Some of the car-leasing loans in the US and the UK have been packaged into asset-backed securities, to be sold on to investors such as pension funds. This was an asset class that played a ruinous role in the credit crunch, except this time the collateral for these assets is cars, not houses. The ratings giants, Standard & Poor’s and Moody’s, have given most of these batches of loans a triple-A safety rating. 

Multiple banks will be involved in any “auto loan ABS” (asset-backed security). For example, a £1.3bn securitised package of UK loans issued by PSA Finance, an arm of Peugeot cars, included HSBC, Lloyds, San Francisco-based Wells Fargo and France’s BNP Paribas.

When residential mortgage-backed securities collapsed in 2007-08, there was a domino effect through financial institutions across the globe.

Should an auto asset-backed security collapse, it is likely that the pain will fall mostly on the car manufacturers who stand behind their multibillion-pound leasing arms. At the Bank of England, economists on its blog entitled “Car finance – is the industry speeding?” concluded that “the industry’s growing reliance on PCP has made it more vulnerable to macroeconomic downturns”.

In Hot Rod Water ....

 

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Receptionist Roz will be all over this. I hear she's already snapped up a shit load of 2003 Nissan micras in her daughter's name as her nest egg to rent out to the unborn. 

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