Modern cars are like white goods or mobile phones. You pay a monthly fee to use them, and either walk away after a while or start again. What's the issue?
That works for inexpensive cars. The problem is the more expensive cars that people want but could in reality afford.
They then hand the expensive car back after three years on a PCP but cannot afford to finance the new one as the usual trade in that you had with HP etc is lost to keep the monthly payments far too low on the first expensive car you could not afford on PCP.
There are now people with massive debts and the car manufacturers with massive stocks of three year old premium cars that have a book value well above reality.
The worry is that secondhand car prices will tank and the Banks will be in criss again.
