PCP the next toxic debt threat or is it?

[BrilloPad]

19 posts on this thread, and only one feeble attempt to change it to another bl**dy boring brexit thread ! there's hope for this forum yet!

There really does need to be a b***t forum.....

[DallasDad]

Thanks for the replies I am still none the wiser re if the world is going to end but perhaps PCP won't be the initiator after all

Thinks, better recheck the WW3 imminent thread......

[greenlake]

Good stuff that angel dust.

mellow, man, really really mellow.

[bobspud]

Thanks for the replies I am still none the wiser re if the world is going to end but perhaps PCP won't be the initiator after all

Thinks, better recheck the WW3 imminent thread......

It's not going to be the debt that ****s them. It's going to be the new PPI scandal that is on its way once the FCA opens an enquiry that can prove the financial houses knowingly gave over optimistic final values to vehicles on the basis that the shortfall would make the punters give the cars back and buy new vehicles rather than being in the position to refinance the car at a fair book value.

[Hobosapien]

It's not going to be the debt that ****s them. It's going to be the new PPI scandal that is on its way once the FCA opens an enquiry that can prove the financial houses knowingly gave over optimistic final values to vehicles on the basis that the shortfall would make the punters give the cars back and buy new vehicles rather than being in the position to refinance the car at a fair book value.

Not sure of that logic. The punter would have to pay the overall amount regardless of how it was broken down across the two loan cycles if they wanted to keep it after the first cycle. The financiers would argue that by giving high GFV they're helping those who are not interested in entering second cycle, only want a new vehicle every 2/3 years so only ever go through the first cycle.

As for toxic debt problem, maybe the manufacturers who are also offering in house finance, know the true cost of manufacture and their profit margin is within tolerance of the seeming poor residual value. After all they're mostly robot built so only costs are the materials and leccy.