Update on the FCA’s review of motor car finance deals

The review of car finance being carried out by… You’re reading the blog post Update on the FCA s review of motor car finance deals that was written by and first published on Money Saving Matters – Blog about Loans, Credit & Finance.


Car Finance – the worry of extra charges

Car finance is an enormously popular way to own a car in the UK. Personal Contract Plans (PCPs) are now used for four in five new cars that are purchased and there are millions of these loans now in force in this country. However, some consumers have found that when the time comes to hand back the vehicle, if this is done via a voluntary surrender then there may well be some unanticipated additional costs. The mechanics of the PCP The PCP is essentially a hire purchase agreement that enables someone without the cash to buy a car up front to borrow the money and repay in instalments. PCPs are structured around an initial deposit and a series of monthly payments that are made over three to four years. These monthly payments are calculated to cover the fall in value of the car as it ages. When the PCP contract comes to an end the car can either be purchased or it can be handed back without any additional cash to pay. If the car is to be handed back then it must be in decent condition and

Why car sharing may be better than car ownership

Sales of new cars fell by 9.3% in September this year. Car insurance, petrol, maintenance and the congestion charge all add up for car buying consumers. So much so that the trend is increasingly towards not owning a car at all. The demands of family life, school runs, weekly shops or emergencies such as a doctor’s visit might seem to necessitate your own set of wheels. However, for many – especially Millennials – that’s simply no longer the case. And build in the fact that on average a car is parked for 95% of the time! And when not parked your commute is likely to be at an average 20 mph such is the effect of traffic congestion. What are the alternatives to car ownership? The only alternative to car ownership used to be a standard rental. This came with its own set of costs and conditions and was a pretty inflexible method for those who didn’t need a car for a particularly extensive length of time. Today, there are many more options, from those that let you “rent” a sea

How to find a really good second hand used car

The second hand car market in the UK is expanding. In the first quarter of 2017, sales of used cars reached an all time high. In fact, we’re buying so many used cars now that earlier this year the sales of new cars fell for the first time in eight years! There are a number of different reasons why used cars have become so incredibly popular. Perhaps the most significant is the Personal Contract Purchase (PCP). The PCP is the type of financing that many people use to buy a new car. It enables a buyer to make payments over a period of time and then at the end of say 3-4 years decide whether or not to make a large final payment to keep the car – or to hand it back and enter into another PCP for a different car. As more and more people choose to hand back these slightly used cars the vehicles make their way into the used car market, increasing both the volume and the options available. Why opt for a used car? ‘Second hand car’ might once have conjured up an image of an old banger

How to buy a used car using car finance

The UK market for used cars is thriving. According to the Society of Motor Manufacturers and Traders, 2016 was a bumper year for the used car industry and set a record for sales. 8.2 million used cars were sold last year, which represents a 7.3% increase on the year before. So, the market is booming – and for many people the simplest and fastest way to secure the right second hand car is with car finance. But what are the options if you’re looking for used car finance and are there any risks in doing so? Used car finance – the market If you’re looking for a cost effective car purchase then the chances are you have considered a second hand vehicle. The market for used cars is very different today to 20 years ago. Back then, if you were looking for a used car, then you were most likely going to be buying from an individual or a dealership handling genuinely second hand cars that had seen relatively intense road usage. Today, it’s a different story. When it comes to buying bran

How to protect yourself from being ripped off by car hire companies

The car hire industry in Europe and the UK is going through a pretty tough time right now. Consumer confidence is at an all time low, with a 30% rise in complaints about car hire practices in the past 12 months. Plus, one of Europe’s major rental companies is now the subject of an investigation into systemic over charging of customers. Of course, not all rental operations are the same – but if you’re looking to hire a car then you need to make sure you protect yourself from being ripped off. What’s going on in the industry? Problems in the car hire industry have got to a critical point. The Spanish Tourist Board has even said that the issues with hire cars and hidden fees, for example, are damaging the reputation of the country. Consumers have less confidence in car hire companies than ever before and it’s not helped by the fact that some of the biggest names are currently in the dock for bad practices. Europcar, for example, is under investigation by Trading Standards for s