Word of warning - car finance

AdrianC

LeeMcD wrote: »

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.

It's taken two and a half years to reach that point, though...

I think Mum's just found out, and spat the dummy.

AnotherJoe

iwb100 wrote: »

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

The student takes her guidance from the mother who also has the same sense of complete lack of personal responsibility.

iwb100 wrote: »

But the people in the article need to take responsibility. You aren't forced to sign the contract. Engage brain before parting with cash.

"Responsibilty? Wassat? "



I have two levels of annoyance with this article.
1. The entitled snowflakes :mad:

2. The BBC for publishing this junk. :mad:

Clive_Woody

Presumably the desired outcome is that the loan is written off, her daughter gets to keep the car and the car dealer is reprimanded for it's irresponsible behaviour....maybe a compensation payout for good measure to cover distress and upset to the mother....

photome

attila_ wrote: »

Same stupidity as people who fell for pay day loan companies? Which is now heavily regulated?

These are all finance products, as the margins get tighter the screws gradually start to get turned on consumers (through mis-selling as example). At first glance it appears consumer fault but when its too late we then blame the financial instruments that consumers are being subjected to...

are you saying its not stupidity, a student with a part time job thinks she can afford a 20k car ?


I knew what I could afford when I was 19 and bought my first car

loskie

what's wrong with a student rail card that's what I had back in the day.

attila_

photome wrote: »

are you saying its not stupidity, a student with a part time job thinks she can afford a 20k car ?


I knew what I could afford when I was 19 and bought my first car

I think its far easier to blame this on act of stupidity on behalf of a consumer, and why not this is what payday loans companies initial pushback was until Gov stepped in, this is what (and still unbelieavably) the gambling industry said until measures were put in place and not too long ago what mortgage provisers were using it as an excuse when they were lending 105% mortgages with light touch checks. The theme of their argument is that it is consumer choice and they just sell the product.

These are all products that are sold to consumer (not businesses) and there is a reason consumer law is tighter. There will be stupid people out there, that’s inevitable. If you want to avoid selling to stupid people then don’t put a product for sale to the public.


Yet they still do, such as Audi in this case. With evidently little checks or even a sanity check on whether their product would be suitable to a student with a part time job.

The desire to have a new car for some people is greater than being able to manage a budget later on.

Scrapit

attila_ wrote: »

I think its far easier to blame this on act of stupidity on behalf of a consumer, and why not this is what payday loans companies initial pushback was until Gov stepped in, this is what (and still unbelieavably) the gambling industry said until measures were put in place and not too long ago what mortgage provisers were using it as an excuse when they were lending 105% mortgages with light touch checks. The theme of their argument is that it is consumer choice and they just sell the product.

These are all products that are sold to consumer (not businesses) and there is a reason consumer law is tighter. There will be stupid people out there, that’s inevitable. If you want to avoid selling to stupid people then don’t put a product for sale to the public.


Yet they still do, such as Audi in this case. With evidently little checks or even a sanity check on whether their product would be suitable to a student with a part time job.

The desire to have a new car for some people is greater than being able to manage a budget later on.

Unless it's been mis sold (doubt it) then this is entirely the consumers fault. There are alot of products that can be bought and used in a harmful way but that's not the intended usage. Can't police em all. People need to take some responsibility, this student would have been told the monthly payments. The same product at rhe same price for someone in employment could be totally suitable.

iwb100

There is a huge difference between this and payday loans. Payday loans were predatory as they simply offered desperate people a short term solution and prohibitively high costs. It was a way to prey on vulnerable people. And they were targeting their marketing in that way.

Buying a new car - you walk into the dealership and approach them. You know the costs clearly - 36 months at X. Nothing is hidden. Its clear what you will pay for the car you are looking at. It is not predatory in the slightest. Where dealers do confuse people is the promise that in 3 or 4 years they'll hand the car back and drive off with another new one - in theory yes - but they'll need a new deposit unless they are lucky or will pay higher costs...

Anyway - the difference is huge. It isn't Audi's responsibility to manage a student's budget. They do affordability checks but one assumes a guarantor was offered OR the student's income was high enough - either way they knew what they were signing up for.

AdrianC

iwb100 wrote: »

Buying a new car - you walk into the dealership and approach them.
...
Anyway - the difference is huge. It isn't Audi's responsibility to manage a student's budget.

Point of order, Sir. The article states this was a used car, and doesn't say whether it was from a franchise dealer or who the financier were.

Mercdriver

I thought the facebook memes about not wanting to 'adult' were a joke. Seems it's true with this case.