Property News · February 10, 2017

Are car loans driving us towards the next financial crash?


Fears are being raised that a boom in personal contract plans is fuelling another colossal build-up of debt in UK and US A huge increase in the amounts borrowed by already-indebted households in Britain and the US to buy new vehicles is fuelling fears that “sub-prime cars” could spark the next financial crash.British households borrowed a record £31.6bn in 2016 to buy cars, up 12% on the year before, said the Finance and Leasing Association on Friday. Nine out of ten private car buyers are now using personal contract plans (PCPs) that have boomed since interest rates fell to historic lows. Continue reading…

Source : theguardian.com
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