Oh, for a quiet life
Life these days has become pretty much excitement-free.Things
have gone a bit quiet on the totty front [language, Graham – Ed.]
and since I only get excited by sports that involve wheels or the
participation of England there’s not much to shout about. Of course
the England thing has ruled out the European Cup which, after
getting over the embarrassment of being knocked out before we could
really work out how to play the game, has not made me too unhappy.
No penalty-induced heart attacks or suffering the pain of watching
each and every game trying to work out if we will survive to the
next round. I have found that you can be very laid back when your
team isn’t playing.
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But just as I started to think that I may take up Sudoku for
some excitement I read a couple of reports in the Times
and Telegraph following up on an announcement by Glass’s
Guide that used car prices are likely to drop by 25 per cent this
year. Both reports talked about car finance, which in mine and Jo
Tacon’s book is not only exciting but also pretty sexy [oo-er –
Ed.]! Maybe we both need to get out more [speak for yourself –
Ed.].
Anyway, they started talking about PCPs and negative equity and
warned those that had taken out PCPs that they could be into
negative equity. What? Don’t they understand that the whole point
of a PCP is the ability to hand the car back and avoid negative
equity?
To add to this they warned about the negative position
throughout a finance term but no mention of Voluntary Termination
in a regulated HP agreement. Now I’m bloody furious!
As usual the national press that doesn’t know its APR from its
elbow is giving advice, and as usual it’s misleading. It’s times
like this that I despair and believe that FSA involvement is now
inevitable.
Unsporting behaviour?
But, just as I started to calm down, I then read that an auction
house is expanding its vehicle inspection business. The cost of
these inspections will run at £300. Who is going to pay for this?
If the funders are simply adding a tenner onto the monthly rentals,
making them less competitive and potentially losing business, they
will then be looking not only to recover their costs but also
receive a contribution towards the potential loss they will suffer
on the car, presumably as a result of the inspection – or what’s
the bloody point?
Any funders would surely be better off increasing the rentals by
a tenner and saying to customers they will allow the car to come
back with up to, say, £250-worth of repair work free and just
charge for work over and above. If there is no repair work the £250
could be used towards excess mileage charges. Now that is a good
marketing ploy and would create great customer relations. Great,
I’m feeling excited – come on Holland!
Motor Finance Issue: 44 – June 08
Published for the web: June 26 08 10:46
Last Updated: June 26 08 15:22
