Car payments are ruining our lives - BBC

Associate
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Me thinks peeps need to get off there high horse .. I don’t do this and I don’t do that, sadly now you are in the minority.

Banks Finance bend over backwards to offer you money, even if you can’t afford it. Yes in my time it was cash until we started to adopt the traits of many other countries who already offered “tick” the whole culture had changed. Good on you give yourself a pat on the back for being able to calculate APR and also know if you can reasonably afford payment over x years. Sadly this is not the case and lending institutions are all to aware of it, as has already been stated in this thread if you ask a lot if people and they are willing to tel you. They are up to there necks in debt, long gone are the days if having at least 6 months wages in the bank for a rainy day
 
Soldato
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Regulation of this industry is a long way off yet imo, mainly because the consequences are relatively minor.

Can't keep up with the payments? Worst that should happen is they'll take your nice expensive car back and you'll have to suffer the indignity of a cheap car or a bus for a while.

It's not like a house where you're at risk of becoming homeless, having to move kids to different schools etc. Not keeping up with a mortgage can cause you major upheaval and long term financial issues, in a way that a car really isn't likely to match.
 
Soldato
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We teach teenagers that debt is OK and they should immediately go to university and 'study' something of interest to them regardless of long term employability. And most importantly the £50k of debt with a 6% interest rate is brushed under the carpet. "It's not a real debt." Are we surprised that the young then take on more debt without thinking through the consequences?
It’s not a debt though and it’s disingenuous to say that it is. It’s essentially a graduate tax. With its own threshold and %. You don’t earn, you don’t pay. No other loan is like that.
 
Soldato
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It’s not a debt though and it’s disingenuous to say that it is. It’s essentially a graduate tax. With its own threshold and %. You don’t earn, you don’t pay. No other loan is like that.

Yes, it has some generous terms like a initial payment threshold, payment rate and expiry date. But these come at a cost and it has interest and the interest is applied whether you are paying it off or not. Your payments may not even be enough to keep the balance steady every month! But it is the moral of the story that matters and the take away is that debt has to be part of every day life, the school you go to and your parents encourage you to get into it as soon as you turn 18 by signing a form.

I am not anti debt, nor university. It is a useful tool to leverage a strategic advantage in life, like getting a better job earlier on. Like buying a house. These are good debts. It is bad university courses because everyone has to go that teachers bad lessons to those who are susceptible to bad decisions. Like the person on the BBC.
 
Permabanned
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Regulation of this industry is a long way off yet imo, mainly because the consequences are relatively minor.

Can't keep up with the payments? Worst that should happen is they'll take your nice expensive car back and you'll have to suffer the indignity of a cheap car or a bus for a while.

It's not like a house where you're at risk of becoming homeless, having to move kids to different schools etc. Not keeping up with a mortgage can cause you major upheaval and long term financial issues, in a way that a car really isn't likely to match.
presumably she will still owe the outstanding debt until its settled?

Sorry if that has already been discussed.

I like the idea of the finance company losing the money if she can't pay, presumably some sort arbitration would be required.
 
Soldato
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They try to keep up appearance by buying German cars perceived as "premium" brands. But it kinda doesn't work when they make up the majority of cars on the road :p
 
Caporegime
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This ain't exactly new is it. Who was it on here a few years ago who was paying a ridiculous amount like of £300 a month for a 5 year old Ford Fiesta or something
 
Caporegime
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It’s always nice to see the perfect people putting all the blame on the people and none on the predatory practices of lenders.
 
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Caporegime
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Nope. Mathematics just teaches kids how to work out many apples John has left after he gives two to Susan and one to Jamal.

It doesn’t teach John how ****ed he is if he spends £5 more than he earns every week and makes up the difference with a credit card.

Funny, mine did. Before leaving first year I could add and subtract. That's, let's face it, the fundamental of this. Before finishing primary school I could work out interest rates. That's the second part of this. There you go, before GCSE's my school had taught me how not to be a fool.
 
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Soldato
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Basic/home economics needs to be a mandatory school subject.

This is a very good point and a potential solution rather than just blaming people. People who cannot afford to should not be able to get finance without a guarantor or committing fraud. This is protecting people from themselves and impulse decisions. In this example they should have to prove they can afford all the normal ongoing expenses of owning a car along with applicable general living expenses in most cases. Granted if they live with their parents their general living expenses would be minimal.
 
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