Taxpayers will fund loans for car buyers

  oresome 12:54 15 Jan 2009

Is this going to achieve anything? Should we be encouraging greater levels of consumer debt, particularly on a rapidly depreciating asset in the present climate?

Surely the market has dried up for new cars not because the credit finance is unavailable, but because purchasers have lost the confidence that their future employment situation is secure.

I concede the government is damned if it does and damned if it doesn't and I don't have an answer as to how to get the car industry started again. But if the taxpayer is going to get even further into debt with loans I'd prefer it was for housing or infrastructure improvements that have a lasting benefit.

click here

  donki 13:14 15 Jan 2009

I would agree, the government isn't accepting that people are being extremely nervous about getting into any long term debt, and rightly so. No matter how low the rates are the money will still have to be paid back and with redundances ever increasing some people are affraid.

  Quickbeam 13:17 15 Jan 2009

With the decrease in brewery sales causing so many pubs to close, will I get a beer loan soon...?

Where do you stop?

  wiz-king 13:57 15 Jan 2009

QB No.... drinking is bad for you, nobody is ever harmed by automobiles. *grin*

  the hick 14:14 15 Jan 2009

I reckon another reason for poor car sales may be because overall they are lasting a lot better than previously. In addition, car plant output may have increased, due to more automation, and Western firms bought-up the old Eastern-bloc plants, and upped output and quality considerably.

  interzone55 14:21 15 Jan 2009

I think the problem may also be that finance companies are being more careful about who they lend money to.

A couple of months back I needed a fridge - £300. Currys were offering Interest Free credit, so I thought I'd take up the offer.
I was turned down though, despite by 5* credit rating. So I just put the fridge on my new gold card that my bank trusted me with...

  donki 15:08 15 Jan 2009

A good point, my car will be 4 years old in April and due an MOT, it has 51,000 miles on the clock and still looks and goes as good as day 1. Really think the MOT interval should be looked at for newer cars...... but thats another topic.

  interzone55 08:51 16 Jan 2009

I had a car less than 6 months old that failed it's MOT.

Long story but I submitted it for an MOT on advise of an expert when I was trying to return the car because it was rubbish...

  donki 09:40 16 Jan 2009

Oh dear I am sure you were a happy camper, I take it that it was a new design/model and there was some teething problems?

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