Word of warning - car finance

CardinalWolsey

Rather than an affordability test perhaps an IQ test might have been more appropriate. Shows the levels that universities are recruiting down to now as well. And someone of that profile - I'm sure the daughter would have needed a guarantor - did the parents not have the balls to say "no"?

foxy-stoat

What a joke. The daughter should of VT'd it and had her credit file trashed for 6 years - that would of allowed her family to sleep better at night and hopefully learnt a hard lesson and had expensive credit for the next decade.

foxy-stoat

CardinalWolsey wrote: »

Rather than an affordability test perhaps an IQ test might have been more appropriate. Shows the levels that universities are recruiting down to now as well. And someone of that profile - I'm sure the daughter would have needed a guarantor - did the parents not have the balls to say "no"?

Doubt they needed too much of a guarantor - they have the car to take back to settle some of the debt.

uknick

Shock, horror; student with minimum wage job can't afford brand new Audi.

What next in surprising news, bears do it in the woods?

I heard the mother on Moneybox and couldn't believe the presenter was giving her the time of day.

AdrianC

iwb100 wrote: »

Come on. A student signed up for a £20000 second hand car on PCP and that's the lenders fault?

Well, perhaps they should have turned her down...

But, ultimately, it's a tenner a day. If that's an amount that's "ruining the family's lives", then why on earth did they think a near-new Audi was a good plan two and a bit years ago?

iwb100

AdrianC wrote: »

Well, perhaps they should have turned her down...

But, ultimately, it's a tenner a day. If that's an amount that's "ruining the family's lives", then why on earth did they think a near-new Audi was a good plan two and a bit years ago?

Yep that is the thing - you pay to drive a car for a fixed period of time. You know the monthly cost and decide if you can afford it or not. Its no different to any other contract. I can understand people not understanding the equity - and being bamboozled into thinking they'll have loads of equity at the end for a new deposit. And its wrong for dealers to mislead buyers there. But when you sign a contract for £329 a month - you know what you're signing for and the length of said deal....madness for someone in that position to sign up for it.

Smacks of short-termism - needing a car so agreeing to anything.

k6chris

The £329 a month for a 'status car' may seem worth it, in month one or two, when you get the warm glow and ego boost of a shiny new car. The problem is month fifteen or twenty when you have assigned the car to being part of your 'base package' and now hanker after something else to make you feel good. It's a similar problem to 'new' mobile phone packages. A really simple test is to do the calculation of number-of-months x monthly-cost, and ask yourself 'would I pay that?' The bargain £36 a month for a 2 year iPhone contact is in reality a massive £864. Chunter over......

foxy-stoat

We all get taught how to add up at school - the rest of it is down to us to work out, lessons, common sense, needs and wants, its not for the ombudsmen.

loskie

"Stupidity Tax" sums it up best. Frightening that this is the calibre of UK uni students.

LeeMcD

Wow, daughter walks in purchases 20k car, realises ouch this is going to cost me a lot.....so this must be the finance companies problem, fool and his money are soon parted.
how times have changed, I was very happy with my 1979 mini while I was in studying.