Long overdue or too much interference?

 

Affects on Automotive industry & future car sales?

 

https://www.autocar.co.uk/car-news/new-cars/bank-england-looks-regulate-pcp-car-finance-deals

 

 

seems a little daft to me as it's surely secured finance (against the car), so if you can't afford it they take the car back? 

That is the issue, the real value of the vehicle used at auction, back on forecourts, the manufacturers are Pyramid Financing and just piling them high, 

renting them out and vehicles are not as 'Safe as Houses' or Land Banking.  

Subprime lending of Money that is borrowed in the first place.  Their is no assets to the value of the borrowed money.

 

BCA & others lend Car Dealers money to buy stock to sell.

1 hour ago, Awayoffski said:

That is the issue, the real value of the vehicle used at auction, back on forecourts, the manufacturers are Pyramid Financing and just piling them high, 

renting them out and vehicles are not as 'Safe as Houses' or Land Banking.  

Subprime lending of Money that is borrowed in the first place.  Their is no assets to the value of the borrowed money.

 

BCA & others lend Car Dealers money to buy stock to sell.

Guess it reminds the B of E of their part in 2007 / 8 > 2017 CRASH !!

Tax payers bailout of very fat cats.

thing is it's often cheaper to PCP a car with no deposit for three years and had it back than it is to buy a used can and keep on top of maintenance etc.

 

I doubt I will buy another car, I will just lease from now on, doesn't make sense buying something that depreciates so much

s'pose it depends how hard you're working "their" depreciating asset----- whilst the BofE  didn't see it coming (officially)  someone was smart enough to move most of the pension fund assets (I think) from equity to bonds "howz vat werk"   "so that was nice"

On going,

 

https://www.autocar.co.uk/car-news/new-cars/bank-england-looks-regulate-pcp-car-finance-deals