Register to Comment
Page 29 of 30 FirstFirst ... 1927282930 LastLast
Results 281 to 290 of 298
Like Tree137Likes
  1. #281
    Burnout Burnout is offline
    Burnout's Avatar
    Join Date
    Oct 2009
    Posts
    7,382
    Twitter
    @

    Fears that complex car 'hire-purchase' deals are leaving buyers vulnerable - Independent.ie

    Fears that thousands of motorists are taking out finance deals without being aware of the pitfalls have prompted the State consumer protection body to launch a new study.
    The Competition and Consumer Protection Commission said personal contract plans (PCPs) were now one of the most popular ways to finance the buying of a car.

    There are also concerns whether the lenders providing PCPs are regulated, and about the regulatory status of car salespeople offering the deals.

    Not regulated, how unusual.
    Sign in or Register Now to reply

  2. #282
    artfoley56 artfoley56 is online now
    artfoley56's Avatar
    Join Date
    Mar 2011
    Posts
    8,997

    Quote Originally Posted by Burnout View Post
    Fears that complex car 'hire-purchase' deals are leaving buyers vulnerable - Independent.ie

    Fears that thousands of motorists are taking out finance deals without being aware of the pitfalls have prompted the State consumer protection body to launch a new study.
    The Competition and Consumer Protection Commission said personal contract plans (PCPs) were now one of the most popular ways to finance the buying of a car.

    There are also concerns whether the lenders providing PCPs are regulated, and about the regulatory status of car salespeople offering the deals.

    Not regulated, how unusual.
    given the state of regulation here, would you feel any better if they were "regulated" ?
    Sign in or Register Now to reply

  3. #283
    Orbit v2 Orbit v2 is offline

    Join Date
    Dec 2010
    Posts
    10,301

    They were talking about this on the radio and said one of the things that prompted the study was a lot of questions from consumers, wondering whether or not they owned the car at the end of the contract. Which suggests that these people didn't understand what they were signing up to.
    Sign in or Register Now to reply

  4. #284
    Vega1447 Vega1447 is online now
    Vega1447's Avatar
    Join Date
    Oct 2007
    Posts
    6,815

    Quote Originally Posted by Orbit v2 View Post
    They were talking about this on the radio and said one of the things that prompted the study was a lot of questions from consumers, wondering whether or not they owned the car at the end of the contract. Which suggests that these people didn't understand what they were signing up to.
    About two years ago a Renault dealer here in Limerick had a setup where they had their cars (along with Dacia's) on display in the Castletroy SC.

    If you wandered over to have a look you were given the invitation to attend a meeting/sales pitch in their hq on the Dock Rd.

    They refused point blank to give me any info at the stand. A bit reminiscent of time share sales guys when on holidays.

    I didn't take up the invite ....
    Sign in or Register Now to reply

  5. #285
    odie1kanobe odie1kanobe is offline

    Join Date
    Aug 2007
    Posts
    32,660

    Quote Originally Posted by Orbit v2 View Post
    They were talking about this on the radio and said one of the things that prompted the study was a lot of questions from consumers, wondering whether or not they owned the car at the end of the contract. Which suggests that these people didn't understand what they were signing up to.
    Some people are thick as pig5hit and even when you explain that at end of the 3 yrs if you make a payment of €X they will still assume that at the end of 3 years the car is theirs and they don't need to make the payment.
    Sign in or Register Now to reply

  6. #286
    robut robut is offline

    Join Date
    Apr 2008
    Posts
    6,889

    Mercedes Ireland executive unleashes unprecedented attack on new car market 'pre-regging' practice

    The new-car sales bubble is in danger of bursting because dealers are artificially inflating ‘sales’ figures, it is claimed.

    Dealers and distributors are being blamed for registering thousands of cars at the end of each month to bolster ‘sales’ figures - even though they have no ‘real’ buyers for them.

    The practice, perfectly legal, is called ‘pre-regging’. The ‘pre-regged’ cars are usually sold for thousands less over subsequent months as ‘nearly new’ or ‘newsed’ vehicles.
    Bold part .. BIZARRE ( Shades of the pre 08 light touch regulation in financial sector )

    Ciaran Allen, passenger sales manager for Mercedes in Ireland, didn’t specifically name any brand but warned that the law of supply and demand will “bring down the house of cards” on several dealers because the practice is not sustainable.

    The figures show how 8,500 cars (22pc of total) were registered in the last three days of January; 40pc of the total for February and 44pc for March and April.

    One unnamed brand ‘sold’ 48pc of their monthly total in the final three days of January.
    Mr Allen said: “We are being asked to believe that 34,000 people who bought a car this year did so in the last three days of the month.”

    And while the new-car market is officially down 14,000 - 10pc to 125,000 - to the end of August, Mr Allen believes the real figures represent something closer to a 14pc decline.
    Anyway read the rest ... salutary warning it seems. Similar to the few who spoke up and were correct pre the crash in 07/08
    Last edited by robut; 27th September 2017 at 09:17 PM.
    Sign in or Register Now to reply

  7. #287
    robut robut is offline

    Join Date
    Apr 2008
    Posts
    6,889

    MORE:

    Mercedes Ireland warns new car market here is dysfunctional .. Fake registering, not UK imports, is the greatest threat to the heath of the industry, according to Irish executive

    RE PCP:

    If correct, those figures paint a picture of an Irish car industry beset on one side by the rising tide of cheap UK imports, and on the other by dealers and distributors selling cars to themselves to generate volume figures - cars which then have to be sold on at a massive discount, further distorting values. The concern is that the twin effect will put further pressure on used car values, which could present serious problems for those dealers which have guaranteed the future value of cars sold on Personal Contract Purchase, or PCP plans.
    His biggest worry remains the state of the market, however. “If a country has a population of four-million people and a car market of, for argument’s sake, 100,000 and you’re trying to artificially push that volume to 150,000 - well, that can’t go on for ever” said Allen. “When the market is jumping up at rates of 20 per cent or more, then it can absorb that kind of sales dumping. But now we are starting to see those actions coming home to roost.”
    Sign in or Register Now to reply

  8. #288
    hammer hammer is offline
    hammer's Avatar
    Join Date
    Jul 2009
    Posts
    66,305

    Personal contract plans, or PCPs, now account for 43% of car-related bank debt.

    That's up from 25% at the end of April 2014, according to figures published by the Central Bank.

    At the end of 2017, Irish households held 126,249 contracts related to PCP finance, equivalent to €1.5 billion.



    Be careful out there.
    Sign in or Register Now to reply

  9. #289
    robut robut is offline

    Join Date
    Apr 2008
    Posts
    6,889

    Quote Originally Posted by hammer View Post
    Personal contract plans, or PCPs, now account for 43% of car-related bank debt.

    That's up from 25% at the end of April 2014, according to figures published by the Central Bank.

    At the end of 2017, Irish households held 126,249 contracts related to PCP finance, equivalent to €1.5 billion.



    Be careful out there.
    Alert over €1.5bn ‘exposure’ to PCP car loans

    Banks are exposed to the €1.5bn personal contract plan (PCP) car market if prices in the second-hand market were to dive further, the Central Bank has warned.

    Almost one-third of new car sales are now financed by PCP, a report from three economists said.

    Their study found that a further risk could include car owners falling into negative equity.

    The watchdog’s Martina Sherman, Tiernan Heffernan, and Bryan Cullen found that at the end of 2017, there were 126,249 PCP agreements worth €1.5bn — that is up from around 14,000 six years ago.
    The one line I am surprised at:

    Almost one-third of new car sales are now financed by PCP
    I actually thought it would be way higher? Is it that people are still hanging onto older cars? OR is it that way more people have CASH to blow on a new car? OR are other types of leasing taking up the "shortfall"?
    Last edited by robut; 29th March 2018 at 02:26 PM.
    Sign in or Register Now to reply

  10. #290
    Gin Soaked Gin Soaked is offline
    Gin Soaked's Avatar
    Join Date
    Apr 2016
    Posts
    2,980

    Quote Originally Posted by hammer View Post
    Personal contract plans, or PCPs, now account for 43% of car-related bank debt.

    That's up from 25% at the end of April 2014, according to figures published by the Central Bank.

    At the end of 2017, Irish households held 126,249 contracts related to PCP finance, equivalent to €1.5 billion.



    Be careful out there.
    From the bank's perspective, there is minimal risk as the deposit , payments and final payment all stay ahead of depreciation.

    So if i default, the bank are grand.

    Accept that it is really easy to crucify yourself on a PCP. Your tolerance for the PCP monthly should be far lower than what you would tolerate if you were actually paying the car off.
    Sign in or Register Now to reply

Page 29 of 30 FirstFirst ... 1927282930 LastLast
Sign in to CommentRegister to Comment