Car finance issues
Discussion
Report out today from the Financial Ombudsman.
In 2021 90% of cars were bought on finance. It is currently running at 78%.
Complaints about car finance have doubled in the last year. They now account for 25% of all complaints received, up from 18% last year, second only to bank account complaints.
Insurance costs have increased by 41% in the last year.
In 2021 90% of cars were bought on finance. It is currently running at 78%.
Complaints about car finance have doubled in the last year. They now account for 25% of all complaints received, up from 18% last year, second only to bank account complaints.
Insurance costs have increased by 41% in the last year.
mtvessel said:
Report out today from the Financial Ombudsman.
In 2021 90% of cars were bought on finance. It is currently running at 78%.
Complaints about car finance have doubled in the last year. They now account for 25% of all complaints received, up from 18% last year, second only to bank account complaints.
Insurance costs have increased by 41% in the last year.
The complaints sound bite doesnt tell the whole story.In 2021 90% of cars were bought on finance. It is currently running at 78%.
Complaints about car finance have doubled in the last year. They now account for 25% of all complaints received, up from 18% last year, second only to bank account complaints.
Insurance costs have increased by 41% in the last year.
LONDON, Dec 14 (Reuters) - Britain's Financial Ombudsman Service (FOS) said on Thursday that complaints about financing and insuring cars have spiked as claims management firms pile in with "speculative" claims that are mostly rejected.
So most of the new claims are speculative by claims companies.
Less (new?) cars financed is a good thing i'd have thought. Though i suspect many will have opted for a (by comparison) cheap personal loan.
Insurance - yes, its gone a bit nuts.
Insurance cos are citing rising costs, parts availability, used car prices being higher (thus claims payouts are higher).
Hopefully it will drop again (ideally before my car insurance is due to renew
)
Insurance - yes, its gone a bit nuts.
Insurance cos are citing rising costs, parts availability, used car prices being higher (thus claims payouts are higher).
Hopefully it will drop again (ideally before my car insurance is due to renew
)Edited by Deep Thought on Thursday 14th December 11:32
vikingaero said:
People started dumping cars after Covid in 2020 and WFH as they had money tied up in cars sitting on their drives covering next to no mileage.
Did they?The number of cars in the UK is up compared to pre COVID. Used prices also up.
Whilst people drove / drive their cars less, they still need them. I dont need my car to drive to work any more, but i do need it still to go to the shops, out for the evening, visiting friends and family, etc.
Joey Deacon said:
I wonder what percentage of those saw what was coming with interest rates and either sold and bought a cheaper car or got off the PCP/Leasing hamster wheel?
I have no idea how anybody can sign up to dealers used car finance now the rates are around 13.9% (BMW example)
I think buying habits changed. Particularly given the massive jump in new car prices, increase in used car prices, and car finance rates.I have no idea how anybody can sign up to dealers used car finance now the rates are around 13.9% (BMW example)
I doubt too many saw what was coming but at trade in time were hit with unpalatable figures and chose an alternative route
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