Government Sub Prime Car Finance – OH NO!

Over the last ten years people have got into the habit of spending money they haven’t got. The Governments proposed solution? Lend them some more.

Rumour has it that Gordon Brown and Lord Mandelson (Mandy to his friends) fancy going into the car finance business. You can read the full article here http://www.timesonline.co.uk/tol/news/politics/article5519737.ece

Now I may be a bit daft, but even I can work out that it is difficult to get people out of debt by offering them further loans. The so called ‘credit crunch’ is a direct result of the banks lending money to people who now find it very hard to pay back. Whether this has been in the form of loans, credit cards or using the equity in their house as a cash point, many people in the UK now find themselves in debt. Some deeply in debt.

If people have a poor credit history they will have trouble getting finance. The reason why the economy is in freefall is because people feel it is their right to have things they cannot afford. Giving them further lines of credit can only ever exacerbate the situation.

For those who do have a solid credit history there are some great deals out there. Take a look at Broker4cars and Finance4cars, they are offering lease purchase deals with an APR from as little 6.9%, combined with great discounts on new cars. For those who either have the cash, or have a clean credit history, this is probably one of the best times to look at buying a new car.

PLEASE stop lending to people who have no money. Credit is not a god given right, it has to be earned. Otherwise say goodbye to capitalism and say hello to creditism.