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  1. #11
    EUrJokingMeRight EUrJokingMeRight is offline
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    PCP - Dont do it.
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  2. #12
    Sierra Sierra is offline

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    Quote Originally Posted by robut View Post
    Credit debt in Ireland is still falling at the fastest rate in the European Union, even if some are using credit cards to pay bills. Overall debt is falling.

    Household debt falling at fastest pace in EU
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  3. #13
    Orbit v2 Orbit v2 is offline

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    Quote Originally Posted by Henry94. View Post
    The endowment mortgage was the big scam back then. Interest only on the loan but buy a policy which would generate the money to pay off the cost of the property at the end. Except it didn't and people got screwed.
    I had one of them, but thankfully converted it into a "vanilla pay my debt mortgage" ...

    I'm interested in these PCP car finance deals. I don't have one, and I wonder what the issue with them is. I suspect if the residual value is less than you were promised, maybe because you did more mileage, or damaged it some way, then you could be faced with a big bill, but it struck me if you are conservative and really want to change the motor every three years, then they're not a bad way to go....
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  4. #14
    robut robut is offline

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    Quote Originally Posted by Orbit v2 View Post
    I had one of them, but thankfully converted it into a "vanilla pay my debt mortgage" ...

    I'm interested in these PCP car finance deals. I don't have one, and I wonder what the issue with them is. I suspect if the residual value is less than you were promised, maybe because you did more mileage, or damaged it some way, then you could be faced with a big bill, but it struck me if you are conservative and really want to change the motor every three years, then they're not a bad way to go....
    Maybe an ans to your Q from Charlie Weston?

    Charlie Weston: PCP car finance deals could be a sub-prime mess all over again

    But a key aspect of a PCP is the need for the car to retain its agreed value at the end of the three or five-year deal. A surge in cheap imports from the UK, due to sterling's Brexit-induced collapse, means many PCP deals may bomb out.

    Also, the sheer volume of PCP deals being done at the moment means that there will be huge numbers of cars on the market when it is time to take out a new deal.

    All this means that PCPs could be the next lending bubble, akin to that sub-prime crisis that hit in 2008.

    .... Motor experts warn there is likely to be a glut of three-year-old cars as recent PCP deals mature.

    This is likely to push values down, meaning many cars bought with PCPs will be below their guaranteed minimum future values.
    This year is the end of the 1st 3 year PCP period in Ireland ..
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  5. #15
    Watcher2 Watcher2 is offline

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    Easy money and easy metal. No one reads the fine print. Disaster waiting to happen.
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  6. #16
    Mad as Fish Mad as Fish is offline

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    This implosion has been flagged on P.ie several times before, not least by yours truly who pointed out quite a while ago that increased car sales were not necessarily the best sign of economic recovery as touted by the usual shills of two or three years ago. Give them their due, the shut the feck up about it after a while.
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  7. #17
    sadcitizen sadcitizen is offline

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    If my figure above is approximately correct, on the order of 12b, then that's a massive chunk of total household debt (about 8%) just from a couple of years of car buying. And it looks like the arrears rate on unsecured non-mortgage loans is about 10% last year.
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  8. #18
    Burnout Burnout is offline
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    Quote Originally Posted by Watcher2 View Post
    Easy money and easy metal. No one reads the fine print. Disaster waiting to happen.
    Some people in Kildare have had enough bad news today. Have job, have money, no worries, borrow away....Overnight things change big time and so many of us are totally car dependent...like myself living in the country you gotta have a reliable car.
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  9. #19
    Orbit v2 Orbit v2 is offline

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    Quote Originally Posted by robut View Post
    Maybe an ans to your Q from Charlie Weston?

    Charlie Weston: PCP car finance deals could be a sub-prime mess all over again



    This year is the end of the 1st 3 year PCP period in Ireland ..
    Yeah, it seems the sneaky thing is this suggestion that you should have enough equity from the guaranteed value to finance the deposit for the next three year cycle. So, while the value might be guaranteed, the deposit for the next cycle isn't, and you are locked into that dealer it seems. Not good. Otherwise I guess you have to find the money to make the balloon payment at the end.

    I prefer to buy used cars. So, maybe the end of this 3 year term might see a lot of used cars available at good prices.
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  10. #20
    Mad as Fish Mad as Fish is offline

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    It's worth pointing out that with a PCP you are not actually borrowing the money, merely renting it off the finance company so you can if fact return the car and walk away from the commitment at any time. Of course there will be a financial penalty (three months payments or something like that) but you are not loaded with debt. The finance companies are the people with the major headache as they then have to dispose of all these used cars by dumping them on the market which may well mean they don't recover the value they had assumed at the start of the contract.
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