DiQ
Member of DD Central
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Post by DiQ on Feb 12, 2017 12:07:42 GMT
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Post by richardthe4th on Feb 12, 2017 13:30:09 GMT
It is interesting - I never realised, if the figures are accurate, the extent of these leasing type arrangements.
Personally I'm not keen on cars as security. Prefer either something that doesn't move, or is in the possession of someone other than the lender!
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dan83
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Car loans
Feb 12, 2017 13:31:36 GMT
via mobile
Post by dan83 on Feb 12, 2017 13:31:36 GMT
Is this a joke post? I only read as far as lingcars.com then clicked the link.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Feb 12, 2017 13:41:28 GMT
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jfm
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Post by jfm on Feb 12, 2017 21:34:56 GMT
... in the possession of ... the lender! Yes - generally bad news when the Lender has to repossess the asset. Better if the Borrower keeps up the payments and retains the asset.
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DiQ
Member of DD Central
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Post by DiQ on Feb 13, 2017 12:59:04 GMT
I think the lingcars link is an example of where the lease industry is today rather than a joke. Looking at this a bit more and I came across this article on record sales, this article on pre-reg cars and then this article on the coming change in VED (road tax). What it looks like to be is car manufactures have managed to reduce the mpg and therefore the emissions on small cars to a stage where no or next to no VED is due. Suddenly getting yourself a Fiesta on lease costs the same each month as a Saturday night in the pub with next to no tax or fuel to pay for. This has caused people to jump on getting a new lease car, there's less upfront cost and less upkeep costs than buying used. This means the government gets less tax, second hand prices fall and people take out ever increasing amounts of debt. Hopefully the new VED rates will change all this with 66 plate and older becoming more sought after. VED rules are only ever changed on new cars, not existing. So to me this looks like the government's change of VED rates could well mitigate the issue, whether that's what their intention was or not. Which in turn makes me less concerned about car based loans available on MT. Or have I missed something?
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gt94sss2
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Post by gt94sss2 on Feb 13, 2017 13:40:27 GMT
Lets not forget that most of the AE loans (the majoirty of the car loans) are expected to refinance away from the MT platform later this year.
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archie
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Post by archie on Feb 13, 2017 13:44:55 GMT
My only worry with car loans on MT is where to invest the thousands I'll get back from the AE loans when they go.
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keystone
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Post by keystone on Feb 13, 2017 14:05:38 GMT
My only worry with car loans on MT is where to invest the thousands I'll get back from the AE loans when they go. Your capital is at risk..........etc IF you get them back
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DiQ
Member of DD Central
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Post by DiQ on Feb 13, 2017 15:16:35 GMT
Lets not forget that most of the AE loans (the majoirty of the car loans) are expected to refinance away from the MT platform later this year. Expected is the word here. If the price of the underlying asset changes significantly then it wouldn't be surprising if the plan for the future of that asset would also change. And with the asset already at 80% LTV it's not got to change by much. Remember when the subprime mortgages went bad people just handed in their keys and walked off. That's a lot easier to do with a car, you can get a bus home and not have to worry about where you're going to sleep.
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