The Next Financial Crash?

[malg]

Just read an article where they reckon the next financial crash will be due to cheap car leasing deals. Some think there are parallels with the sub-prime mortgage scandal.

Last year 2.7m new cars were sold on Britain - that's 5 years growth in a row, and yet we're on our arse! The vast majority of new cars sold were financed by personal contract plans. Some of the leasing loans have been packaged into asset-backed securities and sold to investors such as pension funds (sub-prime anyone?). Rather unsurprisingly they have been rated Triple A safety rating by Standard & Poor's and Moody's (sub-prime anyone?). At present in the US (and this isn't Trump's fault) the total stock of outstanding car loans is $1.1trn.

Do they never fucking learn. I'm sure the loans have been packaged up and sold onto investors at great personal gain by every greedy financial **** involved.

 

[Millwallawayveteran1988]

The number of Range Rover Evoques on the road is evidence of that! Like the Ford Focus now.

 

[TCIB]

I agree, my bank balance is fine but a car acquired properly would smash my finances a bit, not terribly but it would inhibit me from say jetting off to somewhere for 2 weeks on a whim which i do, or used to, a lot. Right now i have tech stuff that is far more important to me than messing about with new dodgy finance schemes, if i need a car bad, i'll hire one, beyond that fuck it, i have servers to buy, fuck cars.

 

[Stoned Rose]

Interesting fing Malg.

The fact that most of what most of us 'own' is financed to fucking death tells us everything we need to know about the state of things.

 

[gordondaviesmoustache]

Given the rate at which they depreciate, the monthly cost of a car lease is unfeasibly cheap.

 

[ali benarbia's studs]

if there is another one, i ll start by beating politicians to death with a claw hammer.

 

[malg]

Given the rate at which they depreciate, the monthly cost of a car lease is unfeasibly cheap.

That's what I don't get. Why buy a new car when you can get a perfectly decent 2 year old motor at a ridiculously low price compared to what it cost 2 years previous.

 

[Barcon]

if there is another one, i ll start by beating politicians to death with a claw hammer.

I would lend you mine but it has some insurance agents to bludgeon first.

 

[bluegirl74]

I'm in the market for a new motor. I should get in quick. ;-)

 

[ali benarbia's studs]

I would lend you mine but it has some insurance agents to bludgeon first.

Thanks mate, appreciate to be thought of blue!