Too many people are buying cars using financial products they do not understand

Re:Too many people are buying cars using financial products ... by Pica_soO on Sunday June 04, 2017 @03:59AM (#14480359)

My aunt lectures at a nursing and hospital-school. Many of her pupils are stuck in the "Car"-Deal. They all leased or lend a expensive car to show off, got into accidents or expensive repairs, could not pay off the accumulating debt, and now are basically indentured in debt-slavery to the car industry with half of their monthly paycheck.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by pzh on Sunday June 04, 2017 @05:06AM (#14480477)

I thought full insurance would be an unwaivable requirement in those cases of leasing. How could they be in debt for accidents?

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by buro9 on Sunday June 04, 2017 @05:33AM (#14480531)

In the UK a new car purchase/lease requires comprehensive insurance for the duration of the lease. Only after the lease has expired and you've purchased could you opt for 3rd party, fire and theft insurance.

The maximum exposure during the period of a lease is whatever the excess on the policy is.

The GP comment can't be applicable to the UK.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by sugarrush on Sunday June 04, 2017 @11:40AM (#14482064)

I never take a loan to buy a car or motorcycle, but I have written off a few vehicles (all my fault, and none involving other people. One amusing-in-distant-hindsight-only case was when I spilled paint all over the interior of a car, written off by the insurance company as beyond economic repair).

In each case I only got the value of that vehicle as per the lowest price the insurance adjustor could find, taking the mileage and age into account. That was never enough to buy something of equal value to me, and I assume totally inadequate to pay off the outstanding loan amount.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by Pica_soO on Sunday June 04, 2017 @05:40AM (#14480551)

Most people dont know, but insurances regularly wriggle themselves out of anti-debt-insurance that are usually sold with leasing contracts.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by buro9 on Sunday June 04, 2017 @10:48AM (#14481840)

In the UK this does not happen.

You are required to get your own fully comprehensive insurance, and can select from the whole market. The vehicle will not be released to you from the car dealership without proof that you possess such insurance.

Please declare which country you are talking about, as the article described the UK and your claims are not true with regard to the UK.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by sugarrush on Sunday June 04, 2017 @11:43AM (#14482086)

There are many UK car dealers that will sell you a 7 day insurance certificate to 'drive away today'. This is quite convenient usually as it allows them to tax the car as well for you, so it becomes road legal.

[ Parent | on HN ]

Re:Too many people are buying cars using financial products ... by TrickyRick on Sunday June 04, 2017 @10:09AM (#14481669)

Perhaps the insurance only covers the current car value, not all future interest payments and as such there is still quite a bit left even after insurance claims.

[ Parent | on HN ]