Is PCP........... the next debt crisis???

roberteagle6 · Post by **roberteagle6** » Tue Mar 07, 2017 7:19 pm

Interesting, Harley Davidson lost 90% of their revenue in 2008/2009 due to these sub-prime loans, the finance companies had refused to take the risk on a number of applications to finance new harleys, so HD agreed to underwrite them. They had to shut Buell down, let go of MV Augusta for £1 after completely rebuilding the factory, and take a big loan from Warren Buffet.
I assume that they stockpiled the reposessions, then in 2011/2012 there were loads of used Harleys for auction with no reserve - they were selling for £3000 to £4000 below UK prices - exchange rate at the time was US 155/165 to £1.

moto al · Post by **moto al** » Tue Mar 07, 2017 7:31 pm

No names no pack drill ,I know someone who bought a BMW 1200 gs ,on that scheme ,has covered over 30k ,on a 4K a year limit . (thumbs) (thumbs) (thumbs) . What can the do kill him ,he owns nothing and has no assets .

Mike54 · Post by **Mike54** » Tue Mar 07, 2017 7:56 pm

more PCP bashing

what do you think is driving the car and bike industry? you people who dont buy new contribute nothing to the industry

johnnyboxer · Post by **johnnyboxer** » Tue Mar 07, 2017 8:01 pm

Mike54 wrote:more PCP bashing <yawn>

what do you think is driving the car and bike industry? you people who dont buy new contribute nothing to the industry

If you think the levels of uk debt on car PCP is great - then it's you that needs a 'yawn'

moto al · Post by **moto al** » Tue Mar 07, 2017 8:17 pm

Mike54 wrote:more PCP bashing <yawn>

what do you think is driving the car and bike industry? you people who dont buy new contribute nothing to the industry

Mike you forgot to mention motabilaty cars they also have a large influence in the motor industry. .Al

AlanHolt · Post by **AlanHolt** » Tue Mar 07, 2017 8:17 pm

Pcp simply allows people to drive/ride something they otherwise couldn't afford. It allows people to keep up with their neighbours when the reality is they can just about scrape together the monthly payments.

TomBoyNI · Post by **TomBoyNI** » Tue Mar 07, 2017 8:31 pm

IainD wrote:I don't get why folk keep bashing PCP, it is a great way to buy a bike.

You pay a deposit, then low monthly payments; either pay the balance, trade in against a new bike and do it again, or walk away. Very simple.

If you want to keep it and don't put some money away each month to cover the balance at the end (unless you already have it) then you are daft, but that is down to the buyer, however you don't get into financial trouble as you can still walk away debt free at the end of the period just a little wiser.

You can of course pay the balance, then sell on privately and (probably) end up with a little cash.

Further, like all credit agreements, you can end the agreement early by getting a balance to pay cost.

If you use the agreement to your advantage, you won't lose and it's probably financially safer than taking a loan for the full amount.

Whats not to like? (thumbs)

I'm with you (thumbs)

Even if interest rates go up PCP deals started before that will be unaffected, they aren't variable.

If you are happy with the idea of renting a car then PCP works well, and if you really want to keep it you can buy it for at the worst case scenario market value.

What is not to like?

johnnyboxer · Post by **johnnyboxer** » Tue Mar 07, 2017 8:32 pm

moto al wrote:
Mike54 wrote:more PCP bashing <yawn>

what do you think is driving the car and bike industry? you people who dont buy new contribute nothing to the industry
Mike you forgot to mention motabilaty cars they also have a large influence in the motor industry. .Al

Not for much longer under this Tory government & their PiP regime

johnnyboxer · Post by **johnnyboxer** » Tue Mar 07, 2017 8:36 pm

TomBoyNI wrote:
IainD wrote:I don't get why folk keep bashing PCP, it is a great way to buy a bike.

You pay a deposit, then low monthly payments; either pay the balance, trade in against a new bike and do it again, or walk away. Very simple.

If you want to keep it and don't put some money away each month to cover the balance at the end (unless you already have it) then you are daft, but that is down to the buyer, however you don't get into financial trouble as you can still walk away debt free at the end of the period just a little wiser.

You can of course pay the balance, then sell on privately and (probably) end up with a little cash.

Further, like all credit agreements, you can end the agreement early by getting a balance to pay cost.

If you use the agreement to your advantage, you won't lose and it's probably financially safer than taking a loan for the full amount.

Whats not to like? (thumbs)
I'm with you (thumbs)

Even if interest rates go up PCP deals started before that will be unaffected, they aren't variable.

If you are happy with the idea of renting a car then PCP works well, and if you really want to keep it you can buy it for at the worst case scenario market value.

What is not to like?

As long as you have the money to keep up the monthlies or you have a fair few grand to pay the final lump sum

If your income is already stretched and you find food/fuel/rent/mortgage goes up due to the economy or inflation & you feel the pinch

What's not to like?

moto al · Post by **moto al** » Tue Mar 07, 2017 8:37 pm

johnnyboxer wrote:
moto al wrote:
Mike54 wrote:more PCP bashing <yawn>

what do you think is driving the car and bike industry? you people who dont buy new contribute nothing to the industry
Mike you forgot to mention motabilaty cars they also have a large influence in the motor industry. .Al

Not for much longer under this Tory government & their PiP regime

hi bud thankfully I don't have Crystal balls ? (thumbs) . Ps and I'm just oot the naughty corner (thumbs) .sit safe .Al