|
My mate is a Renault breakdown mechanic and he was called to a vehicle which wasn't starting.
After much head scratching he noticed some extra cabling and it was wired up to a "pay to drive" box and no payment had been made.
The car won't be turned off mid trip - You pay, receive a code and it then runs for another month. You receive notification a payment is required a few days before the next payment is due.
Edited by daveyjp on 12/07/2017 at 10:35
|
|
Euro 6 diesels with Adblue won't start if the Adblue tank is empty - it's doesn't stop if it empties during the journey and stop-start is deactivated.
|
|
|
|
FP another credit crisis is more frighning than a few freaks that are dumb enough to have a kill switch on their car
A credit crisis could wreck the economy
'Kill Switches' seem to be a feature in the bottom feeder element of car finance, loans for people with low incomes and high risk of default. While there are worries there I don't think it's a segment that could upset the economic applecart. The bit that is causing worry is the exponential growth in new cars bought on PCP; reportedly well over three quarters of all new private registrations. Unexpected chages in fianacing costs or bottom dropping out of used values could turn that into a real credit crisis.
|
The bit that is causing worry is the exponential growth in new cars bought on PCP; reportedly well over three quarters of all new private registrations. Unexpected chages in fianacing costs or bottom dropping out of used values could turn that into a real credit crisis.
If you think that, then you've completely misunderstood PCPs.
The interest rate is fixed at the point of taking out the PCP. Your payments are for £xxx per month, for xx months. No matter what happens to interest rates. Take out a PCP today and interest rates rocket to 20% tomorrow, it doesn't matter. Your costs are fixed.
At the end of the agreement, the 'bottom dropping out of the used car market' would make no difference to a person with a PCP. They just hand back the car and walk away - the agreement has a GMFV - which stands for Garanteed Minimum Future Value. If the value of the car is more than that, then you've got cash in the car to use as part-ex or for another PCP deposit, if it's less than the GMFV then it's not your problem, it's the dealer's (or, more likely, the finance arm of the manufacturer)
|
|
Consumer debt has grown steadily for maybe 5 years after a a period of deleveraging following the banking crisis. Any tightening in the supply of credit, or the cost, threatens consumer spending. Similarly a big fall in used values will eat into equity as PCPs roll over and exacerbate that.
There is just too much debt, government, financial sector, corporate, and personal. There will be an unwinding and it might be painful.
|
|
|
If you think that, then you've completely misunderstood PCPs.
No I understand PCP's perfectly well thank you. The subject at issue here is a credit crisis affecting the solvency of financial institutions. A change in finance costs, if not fully hedged, or a flood of vehicles turned in at or before expiry of the contract passes the problem to the finance arm of the manufacturer and its bankers. Too much of that and, as with ninja mortgages, the solvency of banks is called into question.
Edited by Bromptonaut on 13/07/2017 at 18:49
|
|
|
|
FP another credit crisis is more frighning than a few freaks that are dumb enough to have a kill switch on their car
A credit crisis could wreck the economy
'Kill Switches' seem to be a feature in the bottom feeder element of car finance, loans for people with low incomes and high risk of default. While there are worries there I don't think it's a segment that could upset the economic applecart. The bit that is causing worry is the exponential growth in new cars bought on PCP; reportedly well over three quarters of all new private registrations. Unexpected chages in fianacing costs or bottom dropping out of used values could turn that into a real credit crisis.
I don't understand - the interest rate is fixed at the start of a PCP and any drop in used value below the GMV hits the finance company, not the user.
Beaten to it by RobJP
Edited by RT on 12/07/2017 at 16:17
|
|
An individual may not be affected by changes to interest rates once a deal is signed.
But if s/h values are eroded most punters may chose to hand the car back, particularly if they are personally impacted by recessionary pressures.
Finance companies unable to recover the GMP will realise low values for cars returned and fewer new customers if interest rates increase. In short they could easily become insolvent - and ultimately the banks who fund them will feel the pain.
UK car sales funded by borrowing are at a rate significatly above that which is justified by cars reaching the end of their serviceable lives.
Iindividuals may feel they are justified in spending and deserve the joy of a new car even though it clearly becomes second hand after six months, and probably superceded by an upgraded model within three years.
But they should avoid self-deception and clearlydistinguish between NEED and WANT. Borrowing money for the latter is plain stupidity
|
|
Again ,the press have not quite reported the exact facts.These "finance boxes" only prevent the car starting ,they cannot stop the car whilst it is running, as they are wired into the starter motor circuit.
|
|
Terry W says that "Iindividuals may feel they are justified in spending and deserve the joy of a new car even though it clearly becomes second hand after six months, and probably superceded by an upgraded model within three years."
I was under the impression that a vehicle is socond hand as soon as you drive away from the showroom.
|
|
It may just be time for the credit industry to implode. I see lots of, mainly younger, people around here with all the latest gadgets, vehicles, mobiles etc etc. Things that I would think twice about buying and I am not on the breadline. At least it may stop all the 'yummy mummys' from buying a large SUV to take little Chardonay and Merlot to school.and creating havoc in and around the area twice a day!! It seems they regard their monthly income as a challenge!! Living a bit close to the edge for my taste, but it's all a matter of choice.
Cheers Concrete
|
It may just be time for the credit industry to implode. I see lots of, mainly younger, people around here with all the latest gadgets, vehicles, mobiles etc etc. Things that I would think twice about buying and I am not on the breadline. At least it may stop all the 'yummy mummys' from buying a large SUV to take little Chardonay and Merlot to school.and creating havoc in and around the area twice a day!! It seems they regard their monthly income as a challenge!! Living a bit close to the edge for my taste, but it's all a matter of choice.
Cheers Concrete
And yet they all think the finance industry should take responsibility if/when it does all implode - we need to go back to when people took responsibilty for their own lives.
|
|
"And yet they all think the finance industry should take responsibility if/when it does all implode - we need to go back to when people took responsibilty for their own lives."
On the whole I agree, especially about people taking responsibility. However, the finance industry is far from blameless. An example: I had a letter the other day from my credit card provider.
"Dear Mr FP... Your credit limit will be increasing. We have good news for you. We wanted to thank you for being a ----- customer, and, after careful consideration, we've decided to increase your credit limit from £8850 to £9350."
I was flabbergasted. I don't want this increase. I don't even need £8850 - I never get anywhere near that on my monthly spending. And is this responsible behaviour by the credit card company? Why would they increase the credit limit if not to encourage more spending?
So I rang them up and told them.
Edited by FP on 20/07/2017 at 17:40
|
"And yet they all think the finance industry should take responsibility if/when it does all implode - we need to go back to when people took responsibilty for their own lives."
On the whole I agree, especially about people taking responsibility. However, the finance industry is far from blameless. An example: I had a letter the other day from my credit card provider.
"Dear Mr FP... Your credit limit will be increasing. We have good news for you. We wanted to thank you for being a ----- customer, and, after careful consideration, we've decided to increase your credit limit from £8850 to £9350."
I was flabbergasted. I don't want this increase. I don't even need £8850 - I never get anywhere near that on my monthly spending. And is this responsible behaviour by the credit card company? Why would they increase the credit limit if not to encourage more spending?
So I rang them up and told them.
But very easy to be responsible, as you seem to be, by simply not using all that credit
|
I was flabbergasted. I don't want this increase. I don't even need £8850 - I never get anywhere near that on my monthly spending. And is this responsible behaviour by the credit card company? Why would they increase the credit limit if not to encourage more spending?
So I rang them up and told them.
But very easy to be responsible, as you seem to be, by simply not using all that credit
Have had the same "problem" Your limit has been increased to £xxxx no thank you.
Have told them that when we travel, card(s) will only be used for food and accomodation and tickets, and that was accepted. credit limit is deliberately lowish to lessen chances of fraud as card would be declined. One particular card is specifically for internet shopping as well. one card has no transaction fees used abroad or exchange fees.
However should be interesting when card fees are abolished, making it easier to spend on credit.
|
|
There was TV programme this evening illustrating how good hearted people are supplying bags of food to schoolchildren whose parents can't feed them adequately. They also interviewed parents. What they didn't ask them is what car they drive, how many they have, and what expensive mobile phone they use constantly to talk to friends.
|
|
|
|
