"PCPs are popular because people can afford it more than hire purchase," it said. "For many years, under UK/EU law, every credit deal has had to have affordability checks; they're mandatory. Basic logic is if any lender wants to lend, it only makes commercial sense if the lender gets its money back."
If the measures are introduced, a similar set of means and affordability tests would be implemented and the range of cars available to those on lower incomes would therefore be more limited.
Can you afford your car?
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
Previous: Macan GTS Night Blue
Previous: 981 Cayman S Agate
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- Location: Warrenpoint, N Ireland
718 S
I can then use my cash for reinvestment in my business, where I get a much better return..
Rhodium Silver Macan GTS (sold)
Britain's £40 billion car finance market could be heading towards a mis-selling scandal because of concerns about the reliance on debt to buy vehicles.
Nearly 90 per cent of new cars are sold using finance deals, most of which mean the owner in effect leases a vehicle for three or four years rather than buys it outright.
These so-called personal contract plans (PCPs) allow people to secure cars for monthly payments, helping to cause a motoring boom. Experts fear, however, that many customers are being sold loans without having the terms properly explained to them.
Analysts suggest a financial downturn could result in thousands of drivers unable to keep up payments, leaving dealers with a glut of second-hand cars they would struggle to sell.
The Times can reveal that The Car Finance Company, a provider of finance to those with poor credit histories, appears to be in financial trouble. Six directors of the "sub-prime" lender have quit since the beginning of March and its accounts are listed by Companies House as overdue.
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
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- Posts: 2522
- Joined: Thu Jul 28, 2016 8:38 pm
Finance / PCP is great but it's all down to the individuals to be sensible and responsible.
We have seen this with mortgages a few years ago.
The worst thing is you are financing something that is going down in value.
Never try and keep up with the Jones's as you will probably find out that they actually own nothing and it's all on finance and credit cards.
But it looks like they are millionaires.....
Saying all this life is too short and you do have to enjoy yourself a little
Whilst it is not relevent to me as I have bought both of my Porsches with cash had I been 10 years younger and still in business for myself then the Macan would have been bought on such a scheme and offset against the business to minimise the cash given to those bloodsucking vampires that are the Government (strickly a non political comment as there is no difference between any of the parties as far as I am concerned).
Macan Turbo
Air, 20” wheels, ACC, Pano, SurCam, 14w, LEDs, PS+, Int Light Pack, Heated seats and Steering, spare wheel, SC, Privacy glass, PDK gear, SD mirrors, Met Black, rear airbags
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