Talk Morgan Forums Community The Malvern Arms PCP Car Finance Future Problems

My guess is that the volume car manufacturers are influencing the PCP financing as I understand it depends on a guaranteed residual at the end of the term. Feels a bit like ENRON as well as sub-prime mortgages. What will happen to the residuals on Diesel cars if the negative press continues as currently and assumedly there will be a bow-wave of cars financed through the PCP schemes hitting the used car market. It certainly will be a negative for someone in the system. I wonder who?

A major feature in the Sunday Telegraph today on the subject.

The article suggested that the Regulator, the FCA is concerned that the clients ability to pay is being ignored and that they will both regulate forward and allow claims from customers who feel that they were pushed into finance without understanding both the consequences or the alternatives.

One comment is that this level of "miss selling" may be bigger, in £ terms, than PPI...

The regulator is also concerned that a PCP finance deal on a new car is often cheaper than a similar finance deal on a used car, for the same amount borrowed.

The largest provider of PCP Finance is LLoyds Bank.

Yep the money programme on radio 4 ran with something similar

That probably explains why they closed the Dartmouth Branch and we are offered the chance of visiting their travelling "Horsebox" on Tuesday or Wednesday afternoons in the Public Car Park - 3rd world way of doing business or what .
Ideal on the Outer Hebrides and the like to have a travelling bank and I have used them whilst working up there on occasions.

Over Easter and the half term holidays all the hole in the wall machines ran dry at lunch time as they had removed this facility from the ex Lloyds building.
We just have the NatWest now, initially we had 3 other banks but slowly they have gone.

I suspect this will open the door for the pay to use cash machines now.

Said with feeling Richard

...or be another step on the road to the eradication of cash as a medium of exchange?

A few months ago they got rid of cash payments from one of the cafes at work, and instead they just have contactless payment. The biggest obstacle was purely psychological, it didn't seem 'right' to pay for such small transactions with a card.

The most impressive improvement has been the reduction in queue length at busy time, so everybody is happy.

On My trip to New Zealand I used a Credit Card almost exclusively. I am now using a Credit Card for almost all My Cash transactions. Sure I keep Cash available but realize I need Cash less and less. As I am in Canada a lot, the Credit Card is an easy way to get the best exchange rates.

Sorry Martin it really was a bit " Grumpy Old Man" on the re read.

Last week Lloyds sent me an online questionnaire regarding their service and specifically if my perception of them as a bank had changed at all which I diligently filled in ..

I don't think Dartmouth Ice Cream and Chip vendors are quite ready for this - but it could come yet.

Interesting I only use mine when I need protection on the purchase so mainly larger cost items.
I use the debit card all the while but it's tricky as not all retailers are happy using it on purchases of less than £5.