Ripped-Off Britain

* THE ONE AND ONLY, TRUE AND ORIGINAL, 'RIPPED-OFF' WEBSITE ON THE INTERNET *

SEE THE NEW "INTRODUCE YOURSELF" THREAD: HERE - - and - - LOOK AT OUR NEW "CAR-BUYING GUIDE" SUB-FORUM: HERE

    UK car sales highest since 2007

    Share
    avatar
    papa_umau
    Field Marshal
    Field Marshal

    Number of posts : 11956
    Points : 17981
    Reputation : -25
    Registration date : 2008-08-23
    Age : 73
    Location : Scotland

    UK car sales highest since 2007

    Post by papa_umau on Tue 07 Jan 2014, 11:51 am

    (Reuters) - British new car sales rose to their highest level since 2007 last year, bucking a gloomy European trend to grow by 10.8 percent on the year, industry data for the continent's second-largest new-car market showed on Tuesday.

    The Society of Motor Manufacturers and Traders said cheap finance deals helped shift 2.265 million cars in 2013, up from just over 2 million in 2012 and slightly beating its forecast for sales of 2.25 million.

    Read more about this from Reuters UK HERE




    This bit of news makes me wonder where all of this money is coming from ?

    Either there is much more money about at the top, ( from where most new cars are bought ), or this is just another example of people getting deeper into debt in order to try to live the high life.

    What do you folks think ?


    _________________
    Best of regards

    Papa......



    ex-newcarsalesman

    Number of posts : 21
    Points : 1313
    Reputation : 8
    Registration date : 2013-12-24

    Where is the money coming from

    Post by ex-newcarsalesman on Wed 08 Jan 2014, 10:27 am

    As an ex-new car salesman, let me expand on this.

    There are a couple of ways to buy a car: cash or finance. The number of cash sales I did in a year you could count on the fingers of one hand and were almost always to the 70+ age bracket.

    That leaves about 98% of buyers would bought on credit and when I say on credit, not using a personal loan but using Ford Credit. And Ford add an incentive for credit buyers by adding sometimes up to 2000 towards the deposit. Then we have two main ways of buying on credit:1. On a straight repayment finance and 2. On a PCP (personal contract purchase).

    I don't think I sold a single car on a straight finance agreement. That means ALL of my credit buyers were on a PCP agreement where you pay some (or no) deposit and monthly payments leaving a residual value (or guaranteed future value) to pay at the end of the agreement. Virtually all people trade their cars in before the end of the PCP agreement and start a new one.

    What it means is that you get a car quite cheaply with low monthly repayments BUT it isn't yours until you pay that residual balance at the end. Effectively, you are renting the car.

    avatar
    papa_umau
    Field Marshal
    Field Marshal

    Number of posts : 11956
    Points : 17981
    Reputation : -25
    Registration date : 2008-08-23
    Age : 73
    Location : Scotland

    Re: UK car sales highest since 2007

    Post by papa_umau on Wed 08 Jan 2014, 11:19 am

    Yes Carman, that is how I bought two of my last four new cars.

    After studying these kinds of deals I realised that while I was saving on the higher monthly payments that the straight hire-purchase deals cost, I found that when I come to trade the PCP cars in there was almost no value left with which to use as a deposit.

    Paying the GFV and buying the car outright at the end of the agreement means that I was being encouraged to keep it rather than using it in part exchange.

    When I came to hand back my Toyota Prius at the end of this contract, they would not even take it back at the outlet where I bought it, ( a full Toyota dealership ), and they said I would have to wait until an assessor came to my house and took the car back after charging me for any damage that they thought had been done plus a fee for his service of 200.

    I finished up trading it in at the Citroen garage, where they paid the GFV to Toyota and I finished up with a thousand pounds in my hands with which to use towards the deposit for my new Citroen DS4. ( Of course I had saved up the rest of the deposit in the three years that I was with the PCP contract ).

    I do not plan to use the PCP system ever again !


    _________________
    Best of regards

    Papa......


    avatar
    zathrus
    Field Marshal
    Field Marshal

    Number of posts : 2488
    Points : 5971
    Reputation : 97
    Registration date : 2008-08-21

    Re: UK car sales highest since 2007

    Post by zathrus on Thu 09 Jan 2014, 1:05 pm

    According to those figures it seems that there is still plenty of money or credit floating around out there.

    I simply do not know how they do it as I work bloody hard and I am struggling every day just to keep my head above water.

    The banks would not give me a loan to buy a packet of crisps, never mind a new car.
    avatar
    papa_umau
    Field Marshal
    Field Marshal

    Number of posts : 11956
    Points : 17981
    Reputation : -25
    Registration date : 2008-08-23
    Age : 73
    Location : Scotland

    Re: UK car sales highest since 2007

    Post by papa_umau on Fri 10 Jan 2014, 12:29 pm

    Sorry if I giggled at that comment mate, but it IS true that all of this wealth that "they" keep talking about certainly is floating around for some people to be able to keep on spending.

    As I see it, it would be much better if this wealth was in the hands of more people as if it was they too would want to spend it and help to lift the British economy out of the hole it is in.

    In other words, if the bottom half don't have it they cannot spend it.

    Of course this is what encourages the poorer folk to go to the payday lenders and the loan sharks in order to try to lift their living standards up a bit.


    _________________
    Best of regards

    Papa......



    ex-newcarsalesman

    Number of posts : 21
    Points : 1313
    Reputation : 8
    Registration date : 2013-12-24

    Re: UK car sales highest since 2007

    Post by ex-newcarsalesman on Mon 13 Jan 2014, 6:00 pm

    You'll be surprised how easy it is to get credit on a new car. If you buy a car on a PCP, then normal credit checks don't apply. Well they do, but they are not as strict.

    The whole capitalist system is now fully based on credit. And as a result, it can no longer function without that credit stream (as we saw when the banks stopped lending). Part of the problem is that for every 1 you deposit in a bank, they lend 8 out. The situation in the USA is 10 times worse.

    In my day, you borrowed against a house because frankly, it was an appreciating asset. Why would you borrow against a car which drops like a stone? The fact is that this kind of borrowing is basically a lease agreement. But the UK isn't quite ready for lease cars as private cars....but it's coming....watch the US and we follow about 5 years later.
    avatar
    papa_umau
    Field Marshal
    Field Marshal

    Number of posts : 11956
    Points : 17981
    Reputation : -25
    Registration date : 2008-08-23
    Age : 73
    Location : Scotland

    Re: UK car sales highest since 2007

    Post by papa_umau on Tue 14 Jan 2014, 12:16 pm

    I agree with your point that Britain is just not ready for the leasing of private cars yet and I also think that these deals need to be much more user-friendly for them to ever catch on outside of business.

    I have used this kind of service twice in my life, ( I have bought about thirty cars during my years of driving ), and I do not plan to use it again until it is much more consumer-driven and worthwhile to do.


    _________________
    Best of regards

    Papa......



    Sponsored content

    Re: UK car sales highest since 2007

    Post by Sponsored content


      Current date/time is Wed 28 Jun 2017, 9:47 am