Quote:
Originally Posted by Wideboy
Nail on the head. There is so much wrong with societies attitudes towards goods these days. People now aspire to drive PCP Audi's and live in their new barratts "made from cheese" house, then spend their life living out of paying monthly payments. All really for the sake that they care what people think when they look at them. That might get some people's backs up but it's true. No one NEEDS to buy a new car or bike they just want to, which is fine, but then when they loose their income it's the governments fault for not paying enough job seakers.
Buying something on a loan/credit card fair enough if you can afford it, as SP1 said if all goes t!ts up you actually own the vehicle with no loans/finance secured against it, if you can still keep it great but if not just flog it to cover the repayments or pay it off. Purchasing things on finance on the other hand i just don't see the appeal. You don't own it until the end, you're locked into owning it until the end, realistically not many people will buy it off you until the finance is cleared, if it's written off you loose **** loads of money... ect ect.
I think alot of people look at buying stuff on finance because it's easy. The credit checks are easily passable for a child, everything gets arranged around you and all you have to do is sign your name and you never get to see what you're paying over the odds for.
As i said in the other thread, maybe I'm just old fashioned but I like owning stuff 100% and I like to hand over my money when I buy it.
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By and large, I agree with you but credit is, unfortunately the way of the world now. Nobody actually needs an iphone but millions of people are paying £500+ so that their kids can have one.
I do take exception to the "credit checks are easily passable for a child" - you clearly have no idea about the systems, reports and information that finance companies have access to, which is why we decline at least 30% of applicants (and even more get "termed"). In order to get finance you need to be registered on voters role for at least three years at the current address and also at previous addresses. You need to have established yourself as a good payer and have no adverse information at disclosed or undisclosed addresses (and we can find all linked addresses whether disclosed or not) - yes, big brother is watching!
Biggest issue with the credit card/personal loan is that even when people find that they can't afford the payments they still don't sell the goods to repay their loan. Also, the comment regarding "you're locked into owning it until the end", that is just wrong. If you want to pay off the outstanding amount you get most of the interest removed and can do this or a partial early settlement at any time during the agreement. As an indicator, taking all of our 36 month loans into account, only 25% are still live after 2 years. People just do whatever is convenient for them at the time.