Car finance crisis

[Amarillo]

There are fears that the car finance market might collapse.

Fears of crisis in UK car finance market as owners seek payments help

As car sales plunge by almost half lenders offer repayment breaks or waive interest to halt ‘handbacks’

www.theguardian.com

 

[pjm-84]

Is anyone surprised?

My cousin has a fleet of black cabs (about 100). His business model is based on marginal returns. All bar one finance company has given him a 3 months break on the finance payments. He has 10 cabs with one finance company that has said no. I suspect they will change their mind and follow suit.

His insurance premium for the cabs is £24k a month so he has had to cancel this.

 

[Moakesy]

So it seems that this is another one of those press releases by a trade body highlighting unquantified risks and then saying it’s dependant on government support to avoid issues. And we haven’t even got to three full weeks of lockdown yet.

Given that we are in very abnormal times, there is no way the government can bail out every single business sector. Airlines have said the writing is on the wall (depsite keeping thousands of my pounds and many others money too), car manufacturers the same and many, many other large businesses.

I wonder what their plans are for dividend payments to shareholders this year, or Board salary cuts?

 

[blondebier]

It'll be the first of many if we don't lift the restrictions soon.

I was in support of a period of lockdown so that the NHS could prepare and increase the capacity of critical care beds.

However, I'm not sure public support will persist when they truly understand the real cost and people's livelihoods disappear.

 

[Moakesy]

Is anyone surprised?

My cousin has a fleet of black cabs (about 100). His business model is based on marginal returns. All bar one finance company has given him a 3 months break on the finance payments. He has 10 cabs with one finance company that has said no. I suspect they will change their mind and follow suit.

His insurance premium for the cabs is £24k a month so he has had to cancel this.

It’s good to hear that there are some companies trying to support their customers as best they can. It feels like the way it should be.

There are others who seem to feel they have a ‘right’ to keep the income stream coming in as normal. My step-daughter had an issue along the lines of ’pay as normal, even though you won’t receive the service you’re paying for’, which suddenly wasn’t an issue once they got wind she had contacted the BBC News team about it. Before she was even interviewed, they got in touch and the ’misunderstanding’ had been clarified!!

 

[Velma's Dad]

There are fears that the car finance market might collapse.

Fears of crisis in UK car finance market as owners seek payments help

As car sales plunge by almost half lenders offer repayment breaks or waive interest to halt ‘handbacks’

www.theguardian.com

Ha ha ha ha, they said the subprime loans market and CDOs could never happen again ha ha ha ha (sorry, just thinking about the last sequence in The Big Short).

The PCP edifice was already rotten and tottering before CV came along.

But the car finance market won't collapse for long. Soon enough there will again be people who want to have today what they can't afford to pay for until tomorrow, and car makers whose whole business model depends on giving that to them.

 

[The Poets]

I reckon there’ll be a few private plate Range Rover owners who’ll be removing all personal belongings from the glovebox before repossession.

 

[Sp0_0k]

People seriously have no idea the crisis was coming even without the virus? Seriously not following the most basic analytics on the modern economy? Well, a huge benefit for the governments to hide all the incompetence behind this pandemic.