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Drivers face car loan crackdown to avoid new financial crisis

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    Drivers face car loan crackdown to avoid new financial crisis

    "Drivers may face tougher affordability checks to qualify for car loans amid fears of a new financial crisis triggered by pay-as-you-drive deals.

    The amount of money being borrowed to buy new cars has trebled over the past eight years to more than £30bn and there are growing concerns over the lack of financial checks made on potential borrowers.

    Motorists can be offered loans worth more than their own salaries in a growing scandal which has echoes of the sub-prime mortgage boom which helped spark the global financial crisis.

    Last night the Bank of England confirmed it is investigating car financing arrangements which could lead to regulators enforcing tougher affordability tests, potentially similar to those used on mortgages.

    Nine in ten new car sales are now financed by "personal contract plans" which can enable people on low incomes and poor credit histories to afford brand new top-of-the range cars. "

    Drivers face car loan crackdown to avoid new financial crisis 


    #2
    next week we find out car loans are granted to day trip tourists and guess what, uk residents get to pay for the default.
    Always forgive your enemies; nothing annoys them so much.

    Comment


      #3
      Originally posted by AtW View Post
      "Drivers may face tougher affordability checks to qualify for car loans amid fears of a new financial crisis triggered by pay-as-you-drive deals.

      The amount of money being borrowed to buy new cars has trebled over the past eight years to more than £30bn and there are growing concerns over the lack of financial checks made on potential borrowers.

      Motorists can be offered loans worth more than their own salaries in a growing scandal which has echoes of the sub-prime mortgage boom which helped spark the global financial crisis.

      Last night the Bank of England confirmed it is investigating car financing arrangements which could lead to regulators enforcing tougher affordability tests, potentially similar to those used on mortgages.

      Nine in ten new car sales are now financed by "personal contract plans" which can enable people on low incomes and poor credit histories to afford brand new top-of-the range cars. "

      Drivers face car loan crackdown to avoid new financial crisis*

      Well when society stops putting kudos on owning a bottom spec 320d to put outside your little box of house we may move on.

      But till then fill your boots with a sofa in a range of fookin fabrics.

      Comment


        #4
        Originally posted by vetran View Post
        next week we find out car loans are granted to day trip tourists and guess what, uk residents get to pay for the default.
        You really do live in a paranoid parochial world, don't you.

        Anyway, back in reality: The loans are being put into bundles and become tradeable assets. Anyone seen "The Big Short"?
        Down with racism. Long live miscegenation!

        Comment


          #5
          Originally posted by original PM View Post
          Well when society stops putting kudos on owning a bottom spec 320d to put outside your little box of house we may move on.

          But till then fill your boots with a sofa in a range of fookin fabrics.
          Or a recession white Audi A1 [emoji23]
          http://www.cih.org/news-article/disp...housing_market

          Comment


            #6
            Lots of statistics here:

            Statistics Archive | The Money Charity

            This might be why people are borrowing and not saving:

            70p

            The interest someone on the average salary would receive if they saved 3.3% of their income in an average savings account for a year
            First Law of Contracting: Only the strong survive

            Comment


              #7
              Boom time for insolvency lawyers

              Personal insolvencies set to rise by as much as 30 per cent in 2017
              First Law of Contracting: Only the strong survive

              Comment


                #8
                Get down there, you know you want to: https://www.lingscars.com/
                Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                Comment


                  #9
                  Nothing will change until Carney leaves in June 2019. Until then it's spray the great unwashed with money, and let his replacement bail out the lenders again. By then he will have either retired on £1m a year pension, or moved onto the next gravy train at another unfortunate host country...
                  First Law of Contracting: Only the strong survive

                  Comment


                    #10
                    So just steal a car instead.

                    Comment

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