car finance

THE_LONE_RANGER_4

why do people go to companies like welcome car finance yes car credit and all these other types of companies why? are they mad? do they look at the rates etc ? are they gullible?

rdwarr

THE_LONE_RANGER wrote:

why do people go to companies like welcome car finance yes car credit and all these other types of companies why? are they mad? do they look at the rates etc ? are they gullible?

Remember that not everybody is as streetwise as MSE forum users. If you're hard up and have a poor credit rating it's easy to get taken in by these companies.
Imagine if you need a car but have been turned down for a few loans. You're then offered a nice-looking vehicle at a monthly rate you think you can afford. It can be very hard to walk away. And if 30% APR is the best offer you can get then you'll take it.
My problem with these companies is not so much the finance (which they hae to be upfront about) but the cars themselves. These are often in poor condition and can cost almost double their actual value.
So yes, some people don't look at the rates and are gullible but act out of necessity and desperation rather than madness. If they come here we can help them out.

THE_LONE_RANGER_4

i agree i know the trouble is they prey on these people we all know you dont need a newish or new car ,as some one who was in debt at one point i used to get all the leaflets offering cars etc as you said most of the cars are over priced no deals are given a big rip off, its a sad fact many who are benefiting from tax credits are now useing it to buy a flash car its a pity the public are not educated on finance matters before leaving school,....ps you can still get a cheap reliable motor with out getting credit

rdwarr

THE_LONE_RANGER wrote:

....ps you can still get a cheap reliable motor with out getting credit

Definitely. My daughter's Clio cost £400 two years ago and is still in almost perfect nick. It's had about £200 worth of work on it in that time and sailed through an MOT last month.