BBC News Story "Car payments are ruining our lives"

mark19

RMS Regular
Messages
3,616
Drives
golf
I've finance on my current car. Not hugely expensive by any stretch of the imagination but the dealer didn't even ask me my salary when filling out the form lol.

Really, for all he knew I was working for min wage somewhere. Was far too easy really.

Why would he ask that? It's not his job to ask can you afford the car, pretty sure it's up to you to work out can you afford it. They inform you of your monthly payments and end payment?

Not having a go at you btw !!!
 

pizza85

RMS Regular
Messages
2,508
Location
Newry
Drives
E92 M3
Why would he ask that? It's not his job to ask can you afford the car, pretty sure it's up to you to work out can you afford it. They inform you of your monthly payments and end payment?

Not having a go at you btw !!!
When filling out a finance form it's one of the relevant fields. Dealer doesn't need to know if I can afford it but the finance company do
 

Artoir

RMS Regular
Messages
10,669
Drives
V8/V6
Why would he ask that? It's not his job to ask can you afford the car, pretty sure it's up to you to work out can you afford it. They inform you of your monthly payments and end payment?

Not having a go at you btw !!!

That’s the attitude that led to the sub prime crash a decade ago. The responsibility for debt lies with both creditor and debtor.
 

swansty

RMS Regular
Messages
5,321
Location
Banbridge
Drives
Disco and Saxo
Which is of course what the dealers want and will probably get the person into another car on the lowest miles possible whilst also moving the debt owed into the new deal but telling the customer that the miles have been written off only for the same thing to happen 4 years down the line.

We have the Mrs car on PCP and have went over the miles as she changed jobs and her new one has a lot more travelling but had the sense to store the money for the balloon from day one. Dealer rang me not long ago saying I am in a bad position with the miles but they can get me into a newer car which will get me out of it. Just said no thanks I am going to pay the balloon as we like the car. Well why would you pay the balloon on a car thats not worth what the balloon is. Just responded with sooner or later the piper needs paid.

We were running a car and not paying the true cost per month due to the mileage so by hook or by crook that gap needs to be bridged.

Its a worrying trend as how many people will fall for the scare tactics.
PCP - you are doing it wrong..........If you are in a position to save for the final balloon payment then im sure there were cheaper ways to buy the car.
 

AlpineF30

RMS Regular
Messages
4,968
Drives
BMW M3
PCP - you are doing it wrong..........If you are in a position to save for the final balloon payment then im sure there were cheaper ways to buy the car.

Oh there was but at the time it worked then circumstances changed. The argument I am trying to make is a lot of people will get the car 'cheaper' via PCP then be shafted at the end of the deal.
 

pizza85

RMS Regular
Messages
2,508
Location
Newry
Drives
E92 M3
Oh there was but at the time it worked then circumstances changed. The argument I am trying to make is a lot of people will get the car 'cheaper' via PCP then be shafted at the end of the deal.
Your end of the deal plan mightnt be the best tho. If your car at the end is worth a couple of k less than the balloon, you could in theory walk away and buy a car with similar miles for a couple of k less. Or buy a car with less miles for the same money.

Obviously other things to factor in like you've had it from new etc but worth thinking about if the margins are large.
 

bennn

RMS Regular
Messages
363
Location
Belfast.
Drives
a bike
Ridiculous article from the beeb but there definitely are issues here. Dealerships are either incentivising or pressuring their salespeople too much.

Know a few people who work on the banks/financiers end and some of the lies they uncover are mad, a recent example being when a dealer forwarded proof of income to the lender and accidentally attached a full thread instead of the top email. Initial emails between dealer and customer showed that they were selling a student a Golf R and helped fabricate a job and a monthly income where there was none.
 

AlpineF30

RMS Regular
Messages
4,968
Drives
BMW M3
Your end of the deal plan mightnt be the best tho. If your car at the end is worth a couple of k less than the balloon, you could in theory walk away and buy a car with similar miles for a couple of k less. Or buy a car with less miles for the same money.

Obviously other things to factor in like you've had it from new etc but worth thinking about if the margins are large.

Yeah to be honest we are going to trade it in for something else when the time comes.

Its just a worrying thought of what happens to somebody who has bought car being told the miles don't matter and then stuck with the choice of get another car that they can't afford or hand it back and face the mileage fees or refinance elsewhere.

I think it could leave a lot of people left up **** creek as its not this magical cheaper way to afford a car that a lot of the dealers seem to paint it as especially if it comes back to bite you.

In my case we knew we were going over the miles but put the money away so we have options available to us when the time comes, the most likely option being trading the car and getting something for a used car dealer as we are doing too many miles at present and breaking out of the cycle.
 

Artoir

RMS Regular
Messages
10,669
Drives
V8/V6
PCP - you are doing it wrong..........If you are in a position to save for the final balloon payment then im sure there were cheaper ways to buy the car.

This is part of the problem - and the investigation I imagine.

Dealers are advertising inflated sticker prices then enticing buyers into PCP with “dealer contributions” which in reality cost them nothing. They’re sticking X on the price and then offering to discount it if you take this lovely finance package with low monthlies and a massive payment at the end that most people will never be able to afford.

I’ve heard of cases too where they’re rolling in stuff like GAP and Alloy insurance onto the monthlies without making it very clear or in some cases literally just chancing their arm and sticking a % point on the APR then offsetting it again with a larger balloon payment.

There’s a heap of dirty stuff going on that’s beyond some bint taking out finance she can’t afford.
 

swansty

RMS Regular
Messages
5,321
Location
Banbridge
Drives
Disco and Saxo
I fully agree that list prices are being artificially inflated to encourage people to go down the monthly payment route and make it look like a "great deal" because this £40k car is only £300 a month. To be fair though, PCP is not a mechanism to be used by someone who wants to keep the car. In any dealings I have had, they always try and sell the concept by saying you will get into a new car every 3-4 years. The target market is those who want a new car at this frequency. Like any finance, you need to go in with your eyes open.
 

Eager

RMS Regular
Messages
19,625
Location
fields
Drives
broooooom
Never financed a car or even a basic bank loan. The idea paying every month would torture me.
I test drive a Mercedes a year ago around 14k. Dealer kept pushing me to finance it and use my cash for holidays or home improvements, until I finally cracked and asked him what’s the apr, 13%. I laughed at him and said now that’s the first of a few reasons you may stop pushing it. But others would be balls deep at the idea of a few holidays or a new kitchen and blow there car savings basically.

He wasn’t selling a car, he was selling a never ending finance package
 

dub

RMS Regular
Messages
6,087
Drives
Aero Wagon
That doll can be summed up in one picture....

genius-meme.jpg


It's worrying that there are folk out there like this, have been and always will be it seems!
 

Coog

Admin
Messages
47,514
Drives
GTI
Most finance deals have fixed terms....the APR was woeful but how is it never-ending?

Or take the finance and incentives then clear with the savings in a couple of months time, which might be what the guy was hinting at.
 

Eager

RMS Regular
Messages
19,625
Location
fields
Drives
broooooom
Most finance deals have fixed terms....the APR was woeful but how is it never-ending?

Because many people realise 3 or 4 years into there 5 year deal they want to change. And the dealer is only happy to help by taking that car back as a trade in and get you into another car, and another finance deal for another few years. They want you in that loop
 

Eager

RMS Regular
Messages
19,625
Location
fields
Drives
broooooom
Or take the finance and incentives then clear with the savings in a couple of months time, which might be what the guy was hinting at.

Na this chap was wanting ya hooked in. ‘What’s the point spending your savings on a car’ or something he came off with.
 

richie_mck

RMS Regular
Messages
5,589
It's a sign of the times, no one wants to do hard graft in a 10 year old CAT D corsa with 150k on the clock until they work enough to buy something they can afford.

I also didn't need to be taught in school not to buy anything I couldn't afford, it was my parents taught me that. I think the mum needs to be taking some responsibility for her daughters decision rather than point fingers
 
Last edited:

Apis

RMS Regular
Messages
4,074
Location
NW
Drives
various
It's a sign of the times, no one wants to do hard graft in a 10 year old CAT D corsa with 150k on the clock until they work enough to buy something they can afford.

I also didn't need to be taught in school not to buy anything I couldn't afford, it was my parents taught me that. I think the mum needs to be taking some responsibility for her daughters decision rather than point fingers

This is true. Society blames the schools for everything, including lessons in common sense, but it's parents (or lack of) that are the problem.
People just don't know how to train kids at home anymore.
 

pizza85

RMS Regular
Messages
2,508
Location
Newry
Drives
E92 M3
In fairness there's parents caught in these traps too. How is someone who gets caught in the cycle going to teach their child how not to?
 

Chris100

RMS Regular
Messages
8,045
Drives
718 T
Why would he ask that? It's not his job to ask can you afford the car, pretty sure it's up to you to work out can you afford it. They inform you of your monthly payments and end payment?

Not having a go at you btw !!!

The FCA would disagree with you on that.

There are very clear rules these folks must stick to, and if it is proved they are not they need to prepare themselves for some hefty fines.
 

stevieturbo

RMS Regular
Messages
21,096
Location
Antrim
Drives
Old Ford
Na this chap was wanting ya hooked in. ‘What’s the point spending your savings on a car’ or something he came off with.

Or on the other hand....you could get hit by a bus tomorrow, or end up in a box and all the savings in the world are no use. Spend someone elses money and enjoy things now for a few quid a month

Although the interests rates many do charge are outrageous...and why some claim an APR....yet the finance rate is different is a bit of a mystery.
 
Top