BRFR Cake Stop 'breaking news' miscellany

[midlandsgrimpeur]

Easy credit has funded a different attitude to risk amongst younger people I think.

I'm not sure on this, I think young people (under 35's) are less risk averse. Lower wages, poorer jobs prospects, rents and lack of home ownership prospects have really squeezed them. Your money already has to stretch quite far, so you are probably less inclined to purchase things on credit and put yourself into even greater financial difficulty. Purely speculation on my part though I admit.

 

[C R]

And I am fortunate in that I have an above average number of legs.

I should have pointed out that I was talking about continous variables..

 

[midlandsgrimpeur]

PCPs are an odd form of debt though, because they are secured against the car itself. If you don't keep payments up, your exposure is the amount you borrowed, less the current value of the car, until the two converge at the end of the deal.

In theory you could have more value in the car than the balloon payment, but a dealer will never give you more, and you would need to find another buyer who would. Since there dealerships effectively set market price by this mechanism, that's also unlikely.

Since interest rates have gone up, more people are now leasing. So they never own the car at all.

I think they can make sense if you are in a reasonable financial position and wrap up the monthly payment in your outgoings without over extending, and are either happy to not own the car at the end, or as Boldon Lad says, sell it for an amount the exceeds the balloon payment.

Either way, you have to accept that the monthly payments are basically written off, and also a trade off against that money being saved or spent elsewhere. That is just personal choice though.

 

[briantrumpet]

Of course they do, and no problem at all with that. My worry is people in debt adding further to said debt buying things they cannot afford. A good mate of mine owed £200k to the bank and felt it was a good idea to spend £10k he had made from labouring jobs on a 2nd hand Merc.

Undoubtedly many people taking things on finance will have budgeted accordingly, but I suspect a decent number will also just be adding to existing debt.

Which, of course is their right. But I still think the whole aspirational thing about shiny cars based entirely on debt has been a masterstroke of manipulation, designed to get people trapped in the system.

 

[midlandsgrimpeur]

Which, of course is their right. But I still think the whole aspirational thing about shiny cars based entirely on debt has been a masterstroke of manipulation, designed to get people trapped in the system.

I agree with you. I think car finance is quite a different proposition to most other 'luxury' goods as the very fact that it exists makes something very expensive available to a wider market in a way that other goods are not. You can't buy a Patek watch or a Savile Row suit on finance, but you can buy a Porsche. I have no doubt the car industry has engineered it that way (pun intended!).

 

[BoldonLad]

I agree with you. I think car finance is quite a different proposition to most other 'luxury' goods as the very fact that it exists makes something very expensive available to a wider market in a way that other goods are not. You can't buy a Patek watch or a Savile Row suit on finance, but you can buy a Porsche. I have no doubt the car industry has engineered it that way (pun intended!).

I have not tried to Finance a Saville Row suit or a Patek watch, but, are you sure klarna would not do you three equal payments, or 12 months at 50%apr? 😂

 

[briantrumpet]

I have not tried to Finance a Saville Row suit or a Patek watch, but, are you sure klarna would not do you three equal payments, or 12 months at 50%apr? 😂

Most things you can buy on some finance scheme or another (even stuff from eBay), but what started the discussion was that the car finance companies were stretching the schemes over seven years because the cars are so expensive. It's not exactly like a house that is probably going to at least retain its market value or increase over the term of the loan.

 

[Dorset Boy]

I think they can make sense if you are in a reasonable financial position and wrap up the monthly payment in your outgoings without over extending, and are either happy to not own the car at the end, or as Boldon Lad says, sell it for an amount the exceeds the balloon payment.

Either way, you have to accept that the monthly payments are basically written off, and also a trade off against that money being saved or spent elsewhere. That is just personal choice though.

Part of any money you use to buy a car is a write down as cars fall in value as they get older (until they become a classic). So you can write off a lump sum up front, or do it monthly through a finance agreement, or lease it.

The 7 year article seemed to be referring to the US market - are 7 year PCP type finance deals happening here?

 

[briantrumpet]

The 7 year article seemed to be referring to the US market - are 7 year PCP type finance deals happening here?

Yes, that was a US article, though I'd guess where they lead, others will follow, if it makes money.

Let's hope the willingness to lend to people who can't afford to repay on assets that are devaluing doesn't follow the example of subprime mortgages.

 

[briantrumpet]

Can't think why Isabel Oakeshott hasn't said anything about this assault on free speech... and on plucky 'expats' too!

 

[AndyRM]

5 Creme Eggs is decent though.

 

[midlandsgrimpeur]

5 Creme Eggs is decent though.

Worth £2.90? Shows how out of touch the DM is, a 5 pack is £4 in Tesco.

 

[Pblakeney]

Worth £2.90? Shows how out of touch the DM is, a 5 pack is £4 in Tesco.

£2.50. So you save 20p but have to discard the paper. 😉
https://www.tesco.com/groceries/en-GB/search?query=cream eggs

 

[briantrumpet]

Worth £2.90? Shows how out of touch the DM is, a 5 pack is £4 in Tesco.

I blame Starmer.