Latest Industry News

Motorbike Finance in the UK

Are you low on a budget but wish to own a motorbike? If this is so, then motorbike finance is what you require. A lot of UK companies offer motorbike finance, and there are various types of contracts to choose from. Even renowned companies like Yamaha and Honda offer car finance. You can get new as well as used motorbikes within the budget you have, without any hassle.

You can choose between HP, PCP or Personal loan contracts. HP is Hire Purchase. This allows you to pay the whole price of the bike over monthly instalments. The payment terms are fixed without any mileage restrictions. After full payment and end of the contract, you will have 100% ownership of the motorbike.

PCP lets you pay over monthly instalments too. You have to deposit some money in the beginning. Some dealers also offer no deposit policies, so you have an option if you are low on [...]

Warning Signs Emerge in the UK Car Finance Market

More and more people in the UK have started buying cars on loans. Even people with bad credit continue being given loans to buy more cars. The banks fail to learn from their previous mistakes of car finance for bad credit customers. All this has resulted in the warning bells going off. Many regulators now fear that increasing car loans will lead to another financial crisis of sub-prime loans.

Individuals already indebted continue being able to loan more money from banks. The banks keep giving out such loans for car finance for bad credit. Bad creditors are likely to continue being bad creditors in the future too. This means they won’t be able to pay back their loan. All of this will potentially lead to an economic crash. The crisis seems impending since interest rates and unemployment keeps rising.

Growth in Personal Contract Purchase Plans

Getting car finance even with bad credit has now become [...]

The Future of Auto loans & Wells Fargo

Auto loans were once increasingly popular in the US. But after the 2008 financial crisis, governmental intervention has increased. Hence resulting in a new set of policies being implemented across the country. A major chunk of Auto loans was financed by Wells Fargo and Company. However, the change in government’s policies after the 2008 financial crisis, hit them hard.

The Company

Auto loans, before 2008, were mostly financed by Wells Fargo and Company. Wells Fargo and Company is a US-based banking holding company. It is the second largest company by market capitalization. It is the second largest bank in mortgages, debit cards, and deposits. The company was involved in a mega-scandal in 2016. The bank’s employees had created millions of fake customer accounts.

Cuts in Auto Loans

Car loans, after mortgages are the driving force behind the US economy. In the light of the 2008 aftermath, the government has something else in mind. To prevent [...]

'Misleading' Car Finance Deals under Fire as Complaints Soar

In recent years, more and more people have started taking loans for their car finance. Companies and banks have continued handing out loans despite the credit score of customers. As the number of people taking loans increases so does the number of complaints. Many customers are now unsatisfied with their car finance packages and are raising many complaints.

Over the last year, many companies dealing with complaints about loans have seen an increase in the number of complaints. One such company, Resolver, a consumer advice provider, acknowledges that PCP and such car finance contracts make up a huge chunk of the 8,000 cases they handle.

PCP Loans being Mis-Sold

Personal Contract Purchase (PCP) loans have increased a great deal. They allow customers an alternate easier method of car finance instead of the traditional purchase method. In PCP loans, customers pay an initial amount and then monthly payments for a fixed duration of time. Customers can [...]

The Bank of England has voiced its concerns about the rising consumer debt levels, particularly in the car loan market. This, in turn, has made all the investors wary about the UK car loan market and the kind of bonds being sold in car loans.

If you’re wondering how loans and bonds are related, here’s how: the car loans are converted into tradable bonds. And these bonds are the one thing all investors are primarily interested in. As the focus shifts entirely to the car loan market, we see that the Bank of England has stepped in to take charge. Since the level of consumer credit still rising, the Bank of England has increased its counter-cyclical buffer. What this does is that it works to limit the lending of all the banks in the UK.

However, all of this doesn’t stop Ford Credit Europe from signing on a securitisation deal. A [...]

Personal Contract Purchase (PCP) deals are currently the most attractive in the UK car financing department.They’re a great way to get what you want by only paying monthly instalments for a fixed period of time, by the end of which you will finally own the car. But there’s a huge downside to these very sought-after PCP car finance deals. And we’re here to tell you all about it.
Are you aware of what’s going to happen if you have an accident or if your car gets stolen? That’s one of the critical things you should look into before signing any PCP agreement. Here’s the thing, if your car gets written off as an accident or it gets stolen before the completion of the car finance contract, then you’re in some serious trouble. And if you’re thinking you’ll be alright because no way is your car getting stolen or destroyed in an accident, then think [...]

What is a personal lease on a vehicle?

A car lease is a method which allows you to experience the luxury of driving a new car every few years without worrying about its resale value and other issues. Two types of car lease can be done. Personal lease or PCH i.e. personal contract hire and PCP personal contract purchase

With a car lease you can never own the car even at the end of all the lease payments, but with PCP you are allowed to purchase the car if you pay the full amount at the end. Mind you, if you want to purchase the car at the end of the leasing period, start saving big cash amounts right from today.

In some ways, a PCH is better than PCP. The monthly rental payments or simply said lease amounts are much lower for personal contract hire than PCP. They are often even lesser than the personal car loan that some people have to [...]

car on finance when someone dies

Car on finance is a procedure in which you borrow money and then return it over time (read more).  During this time, anything unexpected could happen, including a death of the borrower. What would happen in this case? Would the loan be forgiven or will the kin have to pay it instead?

Of course, the payment to the lender stops when a person dies. In such a case, the lender has the right to repossess the car. It is important to inform the lender about the death of the person so that arrangements can be made about whether the vehicle has to be returned to a lender or if the payments will be paid to the lender in future. This depends on the person who inherits rest of the property of the deceased. Whether the person can afford the car payments and wants the particular car all contributes to the decision.If there is a will, [...]

UK government targets diesels for restrictions

The government of UK has started to work on improving the air quality by reducing air pollution. Also, it is no news that diesel combustion is a source of air pollution and contributes to a large part of Nitrogen Dioxide levels in the air. The aim of the government is to minimize this level of Nitrogen dioxide since it is a cause of various respiratory diseases like asthma. Nitrogen dioxide’s high levels also cause a sore throat, sore eyes and other issues, especially among the older people. Therefore, not just manufacture of diesel cars is being stopped but the currently existing diesel cars on the road that are owned and used by people are also being ditched in order to make sure that health is prioritized.

In order to make it easier for people to give up on diesel cars, the government is providing discounts and incentives. There is as [...]

How safe is buying a car on finance

If you have made the exciting decision to purchase a new vehicle, you are probably looking into all the available options. Do I buy with cash? Should I go with car finance instead? These are questions that are probably going through your mind at the moment.

Don’t worry, anyone who has ever purchased a vehicle was faced with a similar dilemma. Although, car buying can be an exciting and fun experience, it can also be stressful and frustrating. Nobody wants it to be the latter, which is why we want to help people make the experience as hassle-free as possible.

One of the questions that we encounter a lot, when it comes to car finance is “How safe is buying a car on finance?”

It’s a reasonable question that not many people have the answer for, especially if they haven’t gone through the whole process ever before.

So, how safe is car finance exactly? Well, [...]
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