To think car payments and pcp’s will be the next crisis to hit the U.K. and the world

[Lardlizard]

Yes or no

FGS, for the hard of thinking: some people need a reliable car, it is vital to them to earn their living

Yes - that includes my husband, who has to commute to work. Not everyone falls for the advertising propaganda that a brand new car has to be of a particular, expensive brand to be reliable.

DH has a fucking car he refuses to let go of that costs more than the mate's PCP car. Arrggh! He loves that damn car. It's an old Sante Fe, FWIW.

Not everyone falls for the advertising propaganda that a brand new car has to be of a particular, expensive brand to be reliable.

Yes, hence, why some people on here have told you that they PCP used cars and ones that are of all types of makes and brands and their reasons why they do so, many of which have nothing to do with 'advertising propaganda' . But you continue to disregard this because it doesn't suit your narrow paradigm. We get it!

Cars are also a hobby to me. I'd wager that the additional cost of having a slightly sportier car is still no more than having a 'functional but decent' car and partaking in a separate hobby or going on holiday every three months.

I don't just want something reliable, I want something that goes fast when I put my foot down because....well it's fun.

FGS, for the hard of thinking: some people need a reliable car, it is vital to them to earn their living

I need a reliable car, it cost me 3k and works a treat. I've had it for 6 years and all it has needed is the odd new tyre to get through the MOT.
No need to spend a fortune,

Well, there's that, Custard, our mate is definitely a petrol head. He subscribes to car magazines, goes to car fairs and shows, even hires other cars just to try out the driving experience in them, belongs to some car clubs to do the same, has a lot of mechanic friends and just generally likes motors.

No need to spend a fortune,

And, again, plenty of people who lease a car are not spending what is a fortune to them.

I've paid that for cars in the past that sadly, did not turn out to be so reliable.

Yes, hence, why some people on here have told you that they PCP used cars and ones that are of all types of makes and brands and their reasons why they do so, many of which have nothing to do with 'advertising propaganda'

It all boils down to people wanting something they can't afford - otherwise, why would they commit to a monthly payment that includes interest? Would you buy a car outright and offer the dealer an extra 6% (minimum) for the hell of it? Bearing in mind that you couldn't earn anywhere near 6% on the funds in savings in the current market? No, no sane person would do this.

I don't think they should be. the PPI scandal was misselling because across the cohort of customers people were not getting what they paid for if they needed it because of all the exclusions and were often not aware that they were paying for it in any case.

neither of these issues apply to car finance. the documentation is clear and noone has such an arrangement without being aware of it.

the fact that it is really poor value for money does not intrinsically make it misselling. people have a right to make stupid decisions and fritter their cash away on effectively renting a car they can't afford to buy.

they do get what they pay for, and the interest charges applied to their debts and the massive depreciation in value of the car such that it is easy to owe much more than the car is worth, whilst unwelcome facts are actually realistic, reasonable and explained in the smallprint of the contract.

kids should be educated about how poor value for money it is as part of a life skills curriculum in schools. I am shocked how many first-jobbers straight out of university and still living with parents sign up for deals to give them a shiny posh car. nothing wrong with driving a £500 rust bucket for a couple of years (or using the bus) whilst saving up enough for something better. but it is a free country and it isn't illegal to part a fool from their cash if you aren't lying, cheating or deceiving to do so.

I love watching people tinker with cars, and I'd just as happily spend a weekend trying to fit something as I would out on the town - not that I don't enjoy the occasional drink too. I like the challenge/satisfaction of making small alterations and (contrary to common opinion) insurance often goes down for modified cars.

It's one reason I'm thinking of refinancing the balloon payment on current car (which will be peanuts) and doing a stage 3 remap.

Each to their own.

Oh my god!

It all boils down to people wanting something they can't afford - otherwise, why would they commit to a monthly payment that includes interest?

Here's a little thought for you, I know, I know, but give it a shot: some people do this not because they want something they can't afford but because they can and to them, the cost of the PCP is worth not dealing with a lot of the hassles of buying and owning a car (including selling it, they want to hassle free switch out their car every 3 years). Yes, it's true, several people on this thread alone have even stated this! They pay because they CBA'd to shop around, haggle, buy and sell the car, etc. They don't want to, so they lease one, however difficult it may be for some to realise that not everyone who doesn't behave as they do is automatically financially inferior to oneself, stupid, grasping, flashy or any other negative term; they just do things differently because it suits them. Imagine!

Now, now, Custard, you need to take a step back here ! Remember, some people do not even realise that PCP is hiring a car. Yes, I know, but there you are. Then you start in with balloon payments and stage 3 remaps and some might actually think you know what you're talking about, when really, we all know that you are just someone who can't save just like in The Good Ol' Days and all about flash and what you cannot afford.

I got a lease car because I have a long commute and there is no way in hell I'd put all those miles onto a car I own. I want to put he miles on them hand it back.
No deposit, set monthly amount, keep it in reasonable condition...easy.
I see it as renting a car. Big deal

A friend of mine had a Dacia. Bought it brand new (they're quite well off). I thought it was just her, she drives like hell, but man, that thing was a POS! It didn't last long.

FruitcakeOfHate We could all cite examples of people who are wealthy enough to remain untouched by any imminent financial crisis, no matter how they might choose to spunk away their money.

The point of the thread was that car payments/PCPs are driving the UK towards a financial crisis. I doubt the average person is choosing to pay inflated interest for the convenience of not having to go to a dealer and (goodness, how onerous!) ask about trading in their car when the time comes to change it.

The point of this thread is however it pans out, that's the nature of this site and AIBU. However, most country-wide financial crises have their origins in recklessness on the part of very large organisations and government rather than, say, individuals hiring a bloody car. And lots of average people choose to lease their cars for, well, the variety of reasons even stated on here. It is a hire contract. Lots of things are for hire. All have terms and conditions. You choose to conclude that people who do not behave as you do are financially and morally inferior despite other reasoning. That's okay. We all get it now. It's patently clear.

Not if cars end up being treated like mobile phones where they are effectively too expensive to buy outright so most people pay monthly or rent / lease them

Considering how complex modern cars are and people can’t fit them in their home garages with standard tools anymore I see no bad come of the lease movement
Pcp can be bad as some interest rates are high but savvy shoppers like with anything can always find a good deal

It’s the people who get suck weed in wanting something they can’t actually afford that will be the downfall

It all boils down to people wanting something they can't afford - otherwise, why would they commit to a monthly payment thatincludes interest?Would you buy a car outright and offer the dealer an extra 6% (minimum) for the hell of it? Bearing in mind that you couldn't earn anywhere near 6% on the funds in savings in the current market? No, no sane person would do this.

But if you have to sell it yourself, how can you be sure of the price you'll get, especially if a new model is announced, for example?

There are now pretty strict terms about the condition of a car upon return, so they can't shaft you with massive bills if you've looked after the car (and it isn't usually in their interest if you are a prospective repeat customer).

I could return a PCP/lease car in a condition much worse than I'd tolerate for a car I was keeping - e.g. they often can't charge you for dents smaller than a golfball size. If I was selling, I'd be thinking about sorting any little chips etc so the car was hopefully more aesthetically pleasing than the next one viewed.

Also, do you think people shouldn't get a mortgage if they can't afford to pay cash for their house? I mean, many people could live at their parents' house until 40yo and then buy a bedsit outright.

Say what you want, but I've been PCPing cars for years and my salary and savings both continue to increase, whilst any unfortunate life changing incident is covered by insurance. I can absolutely afford the car I lease, whatever you say - it's around 1/16th of my monthly salary. 🤷‍♀️

Fit = fix

You choose to conclude that people who do not behave as you do are financially and morally inferior despite other reasoning

Not at all.

• They might well be financially superior to me (I'm not especially well off).
• In all probability, they have better morals than I do - I don't set any particular store by society's idea of what is moral and what isn't.

However, I reserve the right to say that anyone who hands over interest payments in return for an item that will depreciate in value, unless it is a matter of life or death, is a fool.

Nothing is ever guaranteed to increase in value.

Anyhow, it's bedtime here in N. America.

I could return a PCP/lease car in a condition much worse than I'd tolerate for a car I was keeping - e.g. they often can't charge you for dents smaller than a golfball size.

Why on earth does it matter if your car has a dent in it, whatever the size? Unless it stops the car working, it's immaterial.

I'm not sure why there is so much sneering around car leasing. Yes some people want a nice shiny car for appearances sake but for others it's a measured option.

Now admittedly leasing has never appealed to me personally because I see new cars as a waste & not remotely into cars (ours is 2nd hand & we had savings to pay for it). About 4 yrs ago my brother leased a little Fiat as he was working on a project in zone 1. It cost him approx £147 a month which was pretty much the same as a travel card. It gave him the flexibility of getting around sites in London. He also didn't have to pay the congestion charge & therefore his parking permit outside his home was free (i think the emissions level is lower now). He handed the car back without paying anything else. I thought it made complete sense tbh.

Why on earth does it matter if your car has a dent in it, whatever the size? Unless it stops the car working, it's immaterial.

Why does it matter if your house needs painting or your jeans have stains not them if they're functional?

Either you're incredibly unimaginative or just too stubborn to concede in the face of logic. I wonder why there is a huge community around car detailing and exhibitions. 🤔 Could it actually be that some people enjoy the aesthetic element of a well maintained car or a classic which would've been long expired if not immaculately looked after.