We have discussed this a good few times and from what I can see nothing has changed in the past few years.
The Sunday Telegraph today 6th October has three articles, virtually word for word the same by three of their writers.
It boils down in the end to advising that the credit checks will be more realistic to make sure punters can afford the cars they PCP. Well we have heard that before and nothing happened.
Does anyone here think this will really tighten up the car credit market?
The only difference I can see here is this comment.
"The Financial Conduct Authority (FCA) is preparing new rules designed to protect car buyers from loan mis-selling. The clampdown, due later this year, has already sparked a gear shift.
Hedge fund tycoon Crispin Odey, one of the biggest investors in listed car dealer Pendragon, said the flood of cheap credit is drying up.
“We’re seeing this spike of people saying ‘I’m sorry, we’re not going to lend you the money’,” Mr Odey said. He has hedged his investment in Pendragon with a bet against Lookers. “What we’re talking about is a credit cycle that has been elongated.”
The slowing of Britain’s financing boom is expected to cause motor bosses to rethink their business models. Neil Woodford-backed lender RateSetter has already closed the doors on its consumer car loans arm. Rhydian Lewis, chief executive, said RateSetter was now “free from that [acquisition], we are older and wiser”.
