Blu financial services

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  • djh77
    djh77 Posts: 99 Forumite
    fwor wrote: »
    This comment needs a response: have you really thought this aspect through?

    Do you realise how much a new car depreciates the instant you drive it away from the showroom? That depreciation would have bought an awful lot of MOTs and services for a secondhand car.

    If you're honest with yourself, you need to accept that your motivation is to have a shiny new car on the driveway, and not because it will be cheaper or significantly more reliable than carefully buying a one year old car - because it won't.

    No it isn't. Not trying to be funny here, but I have done the research and the maths. A 1 year old car will have already done the biggest depriciation it will have.

    For example a brand new SMax costs somewhere in the region of £28k. A 2010 plate will cost between £11k-£12k. That's a depreciation of £16k in 2 years!. A 5 year old SMax (which is how old the car will be by the time I finish paying for the loan) is currently selling for about £5.5k. So, in the 4 years a car I buy for say £12k will depriciate by £6.5k, so £1625 per year.

    I will save, as said, £40 per week in fuel (just to work) and another £20 per week for leisure use. So that's a saving of £3120 per year. That is double the depriciation value. My insurance would go down from currently paying £448 to £326 per year. Tax bracket drops by £120 per year. The servicing costs on the SMax would be cheaper. My car, for instance, needs the cambelt doing really within the next 3/4 months. Vauxhall (I wouldn't take it there btw) want £550 just for the cambelt change.

    I appreciate what you are saying with regards to an older car, but I believe they are false economy. Yes I would still make the savings with regards to fuel, but more than likely they are going to have more go wrong with them. I can't afford, with living the distance I do from work, to have an unreliable vehicle.

    The maths add's up. This isn't a 'whim'. I have no 'motivation' to have a brand new car. It is a one/two year old car I want. Since the bankrupcy I have been so careful with money and have watched every penny almost to an OCD level. The only good thing, from my point of view, to come out of me getting into massive amounts of debt and eventually bankrupt is that it has made me appreciate and respect money a lot more. This is why I am asking on here about these two companies. I do not want to get shafted.
  • fwor
    fwor Posts: 6,806
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    djh77 wrote: »
    It is a one/two year old car I want.

    Apologies, but your earlier posts on this seem unclear, and it looked (to me at least) as though you were ruling out a one year old car in favour of a new one.

    What you say makes sense, though if you're planning to buy a property soon it would make more sense (IMO) to keep your 9 year old until it breaks and save for a replacement in the meantime. Even the cost of a hire car for a few days when it does will be peanuts compared to the cost of a 12k loan.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    Yep, good luck but desire seems to be clouding your better judgement.

    This looks like a non standard horror to me.
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  • djh77
    djh77 Posts: 99 Forumite
    fwor wrote: »
    Apologies, but your earlier posts on this seem unclear, and it looked (to me at least) as though you were ruling out a one year old car in favour of a new one.

    What you say makes sense, though if you're planning to buy a property soon it would make more sense (IMO) to keep your 9 year old until it breaks and save for a replacement in the meantime. Even the cost of a hire car for a few days when it does will be peanuts compared to the cost of a 12k loan.

    Sorry, perhaps didn't make the totally clear. Would never buy a new car (well, unless I won the lottery) as they lose far too much money the moment you drive them off the forecourt.

    Property purchase, if we can do it because of the bankrupcy, won't be for 5 years as we need time to save. But, that is the long-term plan. I am pretty confident my car will be okay for the foresable future. It is in good condition, and I look after it. Have it service regular etc. It is just the running costs that I keep thinking to myself 'that money could be better spent'. I mean I average 24 MPG.
  • ineed
    ineed Posts: 4,432
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    zxspeccy wrote: »
    Looking at the Company details they were set up in 2006, so not a long standing finance company. Interestingly they were original called "Blue Finance Services Ltd" but changed to "Blu" in 2008 (this may have been inforced due to Bluefin not being happy). In addition there is are two "Compulsory Strike Off Suspended" registered against the company in 2010 and 2011. Not entirely sure what these are but assume that they breached Companies House rules at some stage.

    I would recommend you avoid due to the relatively cheap APR they are offering, and the fact that they don't seem to have a company website (as well as the info from Companies House).

    Agreed, I found them on 192.com hope its the same company.

    You can read about a notice of striking off action confirmed, although personally I wouldn't pay to see it in full just knowing its there is enough of a warning. Avoid this company. They seem very shady.
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  • djh77
    djh77 Posts: 99 Forumite
    KingElvis wrote: »
    Yep, good luck but desire seems to be clouding your better judgement.

    This looks like a non standard horror to me.

    I have a desire to get a new(er) car, but as I said in the op, that desire won't be fulfilled at the risk of our future (my pension). It is exactly why I posted here, to see if anyone knew of these two companies as I am having niggling doubts about them.

    Is there anywhere I can go, ie the FSA or somewhere, that might have some information on them?
  • djh77
    djh77 Posts: 99 Forumite
    Just a question though. If this is some kind of scam, what is the angle?

    I mean the pension option must be regulated or Standard Life (who I am with at the moment) wouldn't release the pension fund, would they? How, exactly, would they scam me?
  • ineed
    ineed Posts: 4,432
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    edited 11 May 2012 at 1:16PM
    Found this company website for Blu, seems they are also a debt management company? It's the same address.

    Edit: Just reading the fine print, they're not regulated by the FSA and the loans are secured?

    Quote: "Finance is subject to status, terms and conditions apply, you must be aged 18 or over to apply. Security may be required. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Blu Debt Management Limited is not regulated by the Financial Services Authority. Blu Debt Management Limited is an introducer to lenders and providers of finance."

    Do they want your pension to secure the loan? I'm a bit green with these companies so I hope I'm misinterpreting it.
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    One can pay back the loan of gold, but one dies forever in debt to those who are kind. ~Malayan Proverb
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    No excellent soul is exempt from a mixture of madness ~ Aristotle
  • tell_it_how_it_is
    tell_it_how_it_is Posts: 555
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    edited 11 May 2012 at 1:10PM
    I think sometimes you just have to let your head rule your decision.

    The fact you have had second thoughts about it and come on here, plus the fact there is a lack of information about each company (my albeit brief search would give me no confidence), arguably gives an indication things might not be rosy.

    I wouldn't dismiss the older car out of hand - you can get some cracking motors for a few thousand - though personally I would always steer clear of something which seems too good to be true. And lets face it, any car, old or new, has the potential to be a bad 'un.

    You don't say how much your current car is worth, but would it be enough to put a big percentage towards a decent second hand car? As your main aim is to get on the housing ladder, the less you can spend on a more economical car now might be a decent decision.
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • djh77
    djh77 Posts: 99 Forumite
    I think sometimes you just have to let your head rule your decision.

    The fact you have had second thoughts about it and come on here, plus the fact there is a lack of information about each company (my albeit brief search would give me no confidence), arguably gives an indication things might not be rosy.

    I wouldn't dismiss the older car out of hand - you can get some cracking motors for a few thousand - though personally I would always steer clear of something which seems too good to be true. And lets face it, any car, old or new, has the potential to be a bad 'un.

    You don't say how much your current car is worth, but would it be enough to put a big percentage towards a decent second hand car? As your main aim is to get on the housing ladder, the less you can spend on a more economical car now might be a decent decision.

    Yeah, that is my view tbh. If something is too good to be true.....................

    My car is probably worth £1500-£1800 private sale. Was offered £1200 as a trade in for it. So, with what we have saved up towards the house, I can put a total of £4000 for a new car. But, all that we have saved towards the house will go. But, I will have a cheaper car to run so can save more money quicker.......

    Argh, not an easy decision. However, the more I think about Blu the more confused I get.

    I applied for this loan for them back in February. It has taken this long to get to this stage, paperwork after paperwork that they required. They even require me, if I go ahead with it, to sign infront of a solicitor. So I do think that if they are just after it for my pension, why go to all that trouble? But, still it is still niggling me.
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