Saving For a Space Ship Posted March 5, 2019 Share Posted March 5, 2019 Car buyers overcharged £1,000 by dealers for loans, says watchdog https://www.bbc.co.uk/news/business-47438681 I posted this on the long running pcp car thread, but thought it deserved its own thread https://www.housepricecrash.co.uk/forum/index.php?/topic/229784-boe-investigates-terrifying-rise-in-borrowing-to-fund-new-car-purchases/page/44/ Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 5, 2019 Share Posted March 5, 2019 Looks like another cash back scheme for feckless borrowers. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted March 5, 2019 Share Posted March 5, 2019 Exactly, looks like another PPI in the works. Got to keep funneling money into the pockets of your reckless borrowers. Quote Link to comment Share on other sites More sharing options...
thewig Posted March 5, 2019 Share Posted March 5, 2019 I’d rather overpay £1k for a car than £200k for a house Quote Link to comment Share on other sites More sharing options...
hurlerontheditch Posted March 5, 2019 Share Posted March 5, 2019 doubt a lot of them would have cared, as long as they got a new Ranger Rover Evoque to park out side the nail bar Quote Link to comment Share on other sites More sharing options...
Monkey Posted March 5, 2019 Share Posted March 5, 2019 (edited) The customer would probably be told that they have failed the loan/PCP application unless they took the higher rate of interest, and as its only an additional £22.92 pcm its manageable. 1 take away a month less to get the car of your dreams.... Edited March 5, 2019 by Monkey Quote Link to comment Share on other sites More sharing options...
Orb Posted March 5, 2019 Share Posted March 5, 2019 Jesus..... how the other half live! I usually pay £1000 for an entire car! Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted March 6, 2019 Share Posted March 6, 2019 Definitely another PPI in the works, to reward the feckless and keep them spending. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 6, 2019 Share Posted March 6, 2019 52 minutes ago, dpg50000 said: Definitely another PPI in the works, to reward the feckless and keep them spending. Good job that Mark Carney is being so vigilant. Nurse! Quote Link to comment Share on other sites More sharing options...
thewig Posted March 6, 2019 Share Posted March 6, 2019 STEALTHY stimulus into the DEBTpile of the grateful plebs... incoming!! Quote Link to comment Share on other sites More sharing options...
Andy T Posted March 6, 2019 Share Posted March 6, 2019 What's so wrong with them setting their own interest rates? The banks already do this for personal loans, based on your circumstances/history. Thick buyers who can't use an interest calculator, or make a basic comparison with rates at other car dealers. They'll always be the case of poor credit rating buyers who will eventually find finance but at a higher rate to offset the risk. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 6, 2019 Share Posted March 6, 2019 1 hour ago, Andy T said: What's so wrong with them setting their own interest rates? The banks already do this for personal loans, based on your circumstances/history. Thick buyers who can't use an interest calculator, or make a basic comparison with rates at other car dealers. They'll always be the case of poor credit rating buyers who will eventually find finance but at a higher rate to offset the risk. Why are people surprised that the interest rates offered by the car dealerships are higher than if you shop around? Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted March 6, 2019 Share Posted March 6, 2019 8 hours ago, Si1 said: Why are people surprised that the interest rates offered by the car dealerships are higher than if you shop around? Exactly. I bought a car using a bank loan about 15 years ago. The dealership were pushing hard for me to take their finance. I'd already done my homework and got a personal loan approval in principle from the bank, I knew the dealership wasn't competitive, so I shut them up by saying "If your interest rate is lower than 5.9%, then I'll gladly take your credit." Funnily enough, they gave up at that point. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted March 7, 2019 Share Posted March 7, 2019 I bought my car outright but the dealership was still trying to push finance as "wouldn't you rather have the money in the bank" ... not at <1% interest paid by bank vs ~3% interest asked for the loan. Quote Link to comment Share on other sites More sharing options...
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