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DiggerUK

Ninja Bubble

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When cheap, easy money, flows freely, a liquidity crisis soon follows. Debt bubbles bursting is nothing new.

The latest wheeze with car leasing, 'is a good plan that can be expanded Stan'. The reports of ninjas obtaining new vehicles struck me as 'silly season' MSM reports. But it is all real.....the reason being that these plans are not loans.   If they were, then loans could only be offered after checks as to the borrowers suitability to repay.

It is the equivalent of a non returnable advance rental/deposit  being paid, followed by a monthly rental, with the option to exercise a 'right to buy' option at the end of the rental period. All fine 'n dandy if the liquidity don't evaporate.https://www.moneyadviceservice.org.uk/en/articles/leasing-a-car

 

Just imagine what could happen if this brilliant wheeze is utilised in the housing market. BLT sharks will be in like fleas on dogs..._

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21 minutes ago, DiggerUK said:

When cheap, easy money, flows freely, a liquidity crisis soon follows. Debt bubbles bursting is nothing new.

The latest wheeze with car leasing, 'is a good plan that can be expanded Stan'. The reports of ninjas obtaining new vehicles struck me as 'silly season' MSM reports. But it is all real.....the reason being that these plans are not loans.   If they were, then loans could only be offered after checks as to the borrowers suitability to repay.

It is the equivalent of a non returnable advance rental/deposit  being paid, followed by a monthly rental, with the option to exercise a 'right to buy' option at the end of the rental period. All fine 'n dandy if the liquidity don't evaporate.https://www.moneyadviceservice.org.uk/en/articles/leasing-a-car

 

Just imagine what could happen if this brilliant wheeze is utilised in the housing market. BLT sharks will be in like fleas on dogs..._

Most of the car finance for cars supplied to private individuals are PCPs which are considered as a form of loan and come under (some of) the same rules as hire purchase.

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21 minutes ago, Lord D'arcy Pew said:

Who cares, I still have a few tulip bulbs left over from 1637. Everything will be dandy.

WOW, how much for the black one? :lol:

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9 hours ago, Option5 said:

Most of the car finance for cars supplied to private individuals are PCPs which are considered as a form of loan and come under (some of) the same rules as hire purchase.

That's as may be,  but not for PCH car deals.

All you need to do is go in with some form of i.d., a bank account, and bingo you have a car. It's these sales to ninjas that are going to 'balloon' 

This same principle can be utilised to sell just about anything, not cars..._

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The car industry is one of the most financialised markets out there. In the US they have to go ninja to keep the plants producing and in the UK all the manufacturers want is to hook up consumers to revolving deals. Just like mobile phones, but with scary numbers attached to them.

That's why they are not interested whatsoever in selling you a nearly new car, which always costs more than a new one - the difference being the APR  on the nearly new car being a silly number like 9%. 

In theory, I would not care about "not owning"' if my requirement were for a 99 quid a month Twingo on lease.  That almost makes sense. 

Those who sign up for a PCP on a ******ing Vauxhall Astra for 219GBP per month for 4 years and then have to hand it back OR get another one are lunatics to me, though. 

Personally, I'd steer away from any new metal. I bought the wife's car second hand with 2.5 years' warranty left on it and pait 55% of the original price. . 

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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