18 Year Old PCP

Mike967angus

I think than PCP makes cars that Shouldn't be affordable affordable if that makes sense. At my age I'm wise enough to know that low payments don't mean low running costs.
If it was a case of purchasing a 19k car with cash or regular finance it would never have been a possibility and you wouldn't consider the purchase. The balloon payment compounds matters really meaning you have to keep.the car for the duration of take a massive hit.
If you've got 19k cash insurance shouldn't be a major problem and regular HP payments would be too high and stop young or impressionable people getting into a pickle.:D
BTW motorguy is right the car was inappropriate bearing in mind fuel and insurance costs can always go up.

motorguy

Mike967angus wrote: »

I think than PCP makes cars that Shouldn't be affordable affordable if that makes sense. At my age I'm wise enough to know that low payments don't mean low running costs.
If it was a case of purchasing a 19k car with cash or regular finance it would never have been a possibility and you wouldn't consider the purchase. The balloon payment compounds matters really meaning you have to keep.the car for the duration of take a massive hit.
If you've got 19k cash insurance shouldn't be a major problem and regular HP payments would be too high and stop young or impressionable people getting into a pickle.:D
BTW motorguy is right the car was inappropriate bearing in mind fuel and insurance costs can always go up.

As a parent i can relate to your frustration (particularly when it comes to cars and driving abilities) - ultimately its a harsh lesson for him, but if he learns from it and thats the worst happens to him he'll be grand

Robisere

motorguy wrote: »

Has anyone criticised the sons choice to buy the car? I know i havent?

What has been criticised is the "blame culture" attitude that it must be someone elses fault.

I mentioned no names and was not pointing fingers at anyone specific. You are either overly sensitive, or perhaps the cap fits ...

uknick

motorguy wrote: »

That wasnt the issue of mis-selling endowment mortgages - it was people being missold endowment policies under false pretenses as to what they would achieve.

An interest only mortgage is not unusual nor is it necessarily a problem.

I didn't say the story I heard on Money Box had anything to do with endowment mortgages. The Money Box story is about people taking out interest only mortgages thinking that at the end of the period if they didn't have the means to repay the capital the lender would let them keep paying interest until they did. Or, the lender would wait until the borrower died and then take the capital back from the sale proceeds of the house.

motorguy

Robisere wrote: »

I mentioned no names and was not pointing fingers at anyone specific. You are either overly sensitive, or perhaps the cap fits ...

No - i'm pointing out that people on here are predominantly criticising the blame someone else attitude / mis-selling eluded to initially by the O/P NOT the fact he got the car.

If anyone is interpreting otherwise of this thread, then they're the ones mis-reading it / chosing to read it how they want.

And dont make veiled allegations without backing them up - WHERE did i say he shouldnt have got the car in the first place?

motorguy

uknick wrote: »

I didn't say the story I heard on Money Box had anything to do with endowment mortgages. The Money Box story is about people taking out interest only mortgages thinking that at the end of the period if they didn't have the means to repay the capital the lender would let them keep paying interest until they did. Or, the lender would wait until the borrower died and then take the capital back from the sale proceeds of the house.

Oh thats just nuts. :eek:

reeac

Back in the day endowment backed mortgages were an excellent choice. We started one in 1965 and added to it a few times with the whole thing maturing in the late 1990s with terminal bonuses considerably bigger than had been predicted. That was just lucky timing as the 1990s saw a continuous stock market boom. On the other hand the lending bodies operated strict rules regarding size of loan relative to family income. That all went to pot when those bodies started competing with each other, lending bigger and bigger multiples of income and property value during the 1980s until finally Northern Rock happened.

Mike967angus

He's my son and I know he shouldn't have got the car!
Mite have helped if the salesman had guided him towards a Polo Beats rather than a GTi. Wether he would have listened I don't know probably not.
The salesmans there to sell cars but long term they've now lost a customer.
My main gripe is PCP put a car he couldn't really afford to run just enough within his reach to buy it which he couldn't if it was on normal finance.

motorguy

Mike967angus wrote: »

The salesmans there to sell cars but long term they've now lost a customer.

Why?

They sold him the car he wanted and the car he told them he could afford? Turns out he cant for reasons outside of everyones control, so whys that their fault?

As you've said yourself, if they'd insisted he bought a Polo Beats he'd have walked and bought the GTI (or an equivalent) elsewhere so they'd have "lost a customer" anyway?

I once bought a brand new BMW X5 that was kindly "facilitated" by my local BMW dealer with a palatable PCP deal. Between the finance payments, the fuel consumption and the running costs there are probably small south american countries that cost less to run and i very quickly realised it had been a Very Bad Idea and ditched it at great expense.

Hardly the dealers fault though and i've bought various (more sensibly priced) cars off them since.

You do seem to be persisting with the view that someone should be "punished" or blamed for your sons situation?

Mike967angus

No as I said it's his mistake and the only person being punished is him and he will.learn from it.
It could be argued you can drink and smoke at 18 so whats different about buying a car you cant afford to run?
It's about opinions and you make some valid points.
I just feel these PCPs can make it too easy to be tempted as you obviously were.too.
Difference is.your a big lad like me with life experience to draw on and decided to take a punt.
As I've also said if he was in his twenties I wouldn't have given it a second thought.
Will see how.it goes with the settlement and 1st port of call will be the supplying dealer....That should be interesting