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Audi Finance?

Discussion in 'A3/S3/Sportback (8P Chassis)' started by WolvesPhil, Aug 7, 2008.

  1. WolvesPhil
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    WolvesPhil Member

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    Sorry but not sure what section this should go in..

    Is the Audi finance offer an high interest rate as I have noticed in the past dealers tend to be.... Would a bank/building society be a better option?

    Is the PCP idea any good with the guaranteed buy back fee?

    Thanks in advance..
    #1
  2. 4real
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    4real RS3 Wannabe

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    Hi Mate,

    well i went through audi finance and found them to be the cheapest at the time, but after realy looking into it after 3 years im looking to pay £50k and i put down a 15k deposit.! for my S3 sooo id recomend looking around ..! as im just going to buy out of the audi contract
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  3. PNH80
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    PNH80 Low life livin' the high life.

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    When i bought mine the sales manager was going to try and negotiate a below base rate deal. I doubt you'll get a better rate taking out a personal loan than going with Audi.
    Also, getting finance with the dealer saves a lot of hassle. You can always haggle over the interest rate because don't forget, Audi make money out of it too.
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  4. PNH80
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    PNH80 Low life livin' the high life.

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    I don't understand.... You put down £15k on an S3 and you'll be paying back £50K after 3 years?!
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  5. WolvesPhil
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    WolvesPhil Member

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    I am assuming the 50K Is

    15k initial layout + final settlement + monthly payments?

    Is that how it works? What was the quoted price of the car when purchased?
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  6. PNH80
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    PNH80 Low life livin' the high life.

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    Thats not necessarily just a finance rate then, must be purchase lease hire with a balloon payment at the end and some serious interest!!

    You have to watch the finance smallprint. Audi will check your credit rating and go to whichever lender will pay out the money. If you're considered high risk they'll bang on the interest like any personal lender.
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  7. WolvesPhil
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    WolvesPhil Member

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    Going to the dealer tomorrow so will see what they offer...
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  8. Matt
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    Matt Active Member

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    My dealer matched the internet brokers interest rate that I was considering buying off
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  9. davemk
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    davemk Member

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    Good luck with it Phil. Would be interested to hear how you get on. Wolves Audi have been unreliable in my experience.
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  10. PNH80
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    PNH80 Low life livin' the high life.

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    All i'd suggest is do your research on all the financial in's and out's and what deals are available elsewhere before stepping foot into a dealer. We all know they'll have your pants down at every turn if it means earning a bit of commission from an inflated finance deal...

    Maybe i'm just sceptical!
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  11. bry865
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    bry865 Member

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    I was'nt happy with they way the repayment works, its front end loaded with interest. Bought a used car for £16500, paid a £2300 cash deposit financed £14200 and after paying £315 a month for 11 months it cost me £13700 to buy out the deal.
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  12. 4real
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    4real RS3 Wannabe

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    Yes thats right 15k deposit, monthly payments and settlement is 14k

    when i spoke to audi finance and worked out total with interest 50k .. had to change my underwear..! wont come to that though..! love the car but thats RS4 money..!
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  13. sat1983
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    sat1983 Member

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    My god I don't know how you guys can stomach finance. I suppose I was lucky enough to have about £20k in savings so bought my A3 cash- it really is the best way imo! I now am getting rid of it for a mini and only had to add £3k cash to own it.
    When I think how much a new car costs (or even used) to buy and run, especially on paying for it on credit it makes me sick. I only had to look at the mini cooper D- for the pleasure of using their finance you're giving them another £4k on top of what the car is worth + depreciation and everything else it's stupid!
    The one things i'd consider is lease hire- if you change them every 2-3 years (which most of us on here do) it's the right way to go- especially if you do lowish miles.
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  14. SteveTDCi
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    SteveTDCi Active Member

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    Always check the APR and not the flat rate that dealers use, and remember they all quote these silly admin fees and option to buy. I don't like PCP's you seem to pay more in interest. I always go down the route of a personal loan, its cheaper and less hassel if you want to change as the loan isn't secured in the car. The VW dealer couldn't get anywhere near tescos's. If you do go for a loan never borrow more than the car is worth, otherwise if something goes wrong and you end up with negative equity you will have a loan that you need to continue to pay and no car, sometimes GAP insurance is good to cover this, again buy this seperatly and not from the dealer and make sure you get the return to invoice value.
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  15. WolvesPhil
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    WolvesPhil Member

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    Technically I could pay for the car outright but am thinking I may be better putting the same money onto my mortgage to cut down the insurance I pay that way! Just weighing up options really...

    The PCP as an idea sounded interesting but reading into it is just looks like the money you pay for the 3 years has no effect on the balance as the deposit and the settlement figure almost equal the purchase price??

    Time to shop around for personal loans methinks - MoneySavingExpert here I come!

    I am buying from Sutton Coldfield Audi as I live inbetween the Wolves dealer and this one and prefer the Sutton one.
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  16. TrickyLad
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    TrickyLad is loving his new A3

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    PCP makes no sense to me at my age

    i was quoted a buy option over 3 years of 6k, car would be worth 9k and the 3k difference would be used as the deposit on the next car.

    i just got it on a flat loan with them. that way i will have 7k to put to the next car. it just made more sense to me. I have it on 4 years so i reckon i will sell it in 2 1/2 years and hopefully get about 8.5k and have about 3.5k left to pay on loan, so will use 5k as a deposit.

    its all to do with personal situation, depends on how much you can afford to pay per month. try and pay the most you can afford every month (because you choose not because the apr is really high) that way at the end of the contract you will own the majority of the car.
    I do however think i will be getting PCP on next car. although i am moving to london in near future so the car might be going very soon anyway :keule:
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  17. mac1403
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    mac1403 Member

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    For the S3 I just ordered I am paying half cash and half finance. Audi offered 6% on the remainder and not front loaded. You can also pay off whatever you can when you can to bring te payments down. If its as good as they make out it seems a more than fair finance agreemment....put like this, its better than the rate I can get from the bank and its better than all these people who say loans from 5%. When you apply it suddenly becomes 8% as they say you are not elligible for the lower rate...mmmm....let me think, I don't earn enough to get the lower interest rate so they charge me more. How dull is that!!!
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  18. WolvesPhil
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    WolvesPhil Member

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    Is that finance more a standard loan type thing rather than a PCP with a buyback option? Not really discussed options with dealer yet but will see what they offer tomoz...
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  19. Amchlolor
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    Amchlolor Active Member

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    Earnings have nothing to do with the rate you're offered.
    Credit history does.
    'Something' in your credit history is making the lower rate unobtainable to you.
    It could be you have too short a credit history, or you have a poor credit history (could be something about previous people in your address too).
    I have a long credit history and I am also classed as having an excellent one (it's easy enough to find out).
    I always get their advertised rates.
    It's never even an issue, I just get offered them straight away.
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  20. mac1403
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    mac1403 Member

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    Well you must be lucky then, or applying to better loan companies than me. Credit history is as far as I know perfect. Never been over drawn at the bank. Always paid own bills. No mortage.....In fact I don't owe anything! Maybe its cause I don't usually do credit.
    To answer the question before the rate I got offered from Audi is the HP rate.
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  21. Amchlolor
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    Amchlolor Active Member

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    You've answered the question there.
    Sounds like you don't have enough of a credit history, so they see you as a risk.
    My brother had this problem when he went for a mortgage.
    He'd never had a loan, never had a credit card, always paid cash.
    He had to go out and get a credit card, just to start a credit history for himself.
    I have several credit cards on the go at any time, and I'm constantly switching balances etc.etc.
    A credit card tart, they call us.;)
    Every time you cancel a credit card (different from paying it off, but keeping it open), your credit rating improves.
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  22. davemk
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    davemk Member

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    Yes, according to Martin Lewis, your credit rating (and therefore the rate at which interest is charged) is affected by credit available to you. In essence, this means that any credit card limits could go against you unless you cancel the card. Reducing your credit card limit on any cards that you do use will be advantageous for your credit history and loan applications as I understand it.
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  23. PNH80
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    PNH80 Low life livin' the high life.

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    I've always had this issue with my vredit history...Or lack of one more to the point! I'm a firm believer in 'if you can't pay for it, don't buy it'. Too many people have things on credit which they have no right to own! Hence the current bag of ***** economic climate. Irresponsible spending and borrowing.
    However by trying to do the right thing and living within my means (not spending on a credit card, not borrowing money, not having any store cards) i'm an outcast!
    You'd think that a person with a solid income, no outstanding credit and minimal debts would be a prime candidate for finance... But no. They like suckers who are up to the eyeballs in debt. Funny world we live in eh!

    It's a bit eye-watering some of the figures being thrown around here. Honestly, a lot of people need to assess how they 'own' a car. Finance companies must be having a right laugh at how easily people will pay up to 30% interest rates on something as disposable as a car!

    I will only be going lease hire from now on. No massive deposits, no worry about resale time or the bottom falling out of the car market, no borrowing big sums of money. I'll pay 30% of the value of the car, drive it for 2 years and give it back for a new one.... Thanks very much!
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  24. Amchlolor
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    Amchlolor Active Member

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    Wee bit unfair there, PNH80.;)
    They just want to see proof of you being able to pay off debt in a reliable manner.
    We ask for credit references when a new client asks for credit, it's the same thing really.
    Just as you have to build up a no-claims bonus, you have to build your credit rating.
    #24
  25. Staz
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    Staz is a retronaut Staff Member Moderator

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    That's about 6% interest. What was your APR?
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  26. marriedblonde
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    marriedblonde Moderator

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    Claire got her first credit car 2 weeks ago and she could only get a credit limit of £1000 :) Made me laugh. I had agreed to pay of her card each month so long as she didn't go mad.
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  27. PNH80
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    PNH80 Low life livin' the high life.

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    Agreed, but you know what i'm saying...banks and credit companies love lending to people who are already up sh*t creek in debt! Probably because they make good business in missed payment charges etc.
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  28. Amchlolor
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    Amchlolor Active Member

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    I see RBS have just announced the second biggest banking loss ever...
    Something like £694million.
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  29. Staz
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    Staz is a retronaut Staff Member Moderator

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    I fully agree. I couldn't believe it when in my late teens I found out that most people put the xmas shopping on credit cards. All those kids getting PS2s etc and their parents were going into debt to do it. My parents paid for everything I got, which wasn't a lot as they were poor but that didn't matter to me.

    I have 1 credit card which I only use when I buy online or when buying something more expensive. I use it because you get insurance on everything you buy and because I get 0.25% (was 0.5 when I got the card) cashback. I make sure I pay off the balance every month.

    So far I have made about £200 from my credit card company and they have taken about 3 quid from me when I made a cash withdrawal in Florida.

    Anyone who gets themselves into debt and gets their stuff repossesed fully deserves it in my eyes. They should look after their money and feel the repercussions when they don't. The government should not be introducing measures to help them out! How will anyone ever learn?!

    Bit of a rant there, I'm sorry.
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  30. mac1403
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    mac1403 Member

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    Well i understand the basics of the credit check sysytem, but it seems like a total load of bull to me. Its no wonder banks are in the **** showing massive losses. If they are prepared to lend money to people who have everything they own on a credit card, more fool them. The problem that then occurs is the bank gets into **** and has to be bailed out by taking all the money from the people they previously wouldn't give credit to. In this world of knowing exactly what everyone does surely a credit check should involve other aspects of how a person manages his finances. You could be sat in your own house with no morgage and a good disposable income. Before everyone says if you got your own house why are you after credit....you may not have the cash readily available.
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  31. marriedblonde
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    marriedblonde Moderator

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    It's not quite like though is it, they are looking for people with a history of using credit and paying it back before they are willing to lend them more and at a favourable rate.

    It's nothing to do with people having lots of debt and then wanting to get into more!

    J.
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  32. PNH80
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    PNH80 Low life livin' the high life.

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    But banks are in a mess financially because they haven't been properly checking people out.... Obviously they've been lending to people who can't pay it back without slipping into reposession the second interest rates go up by 2%! 5x annual income mortgages with no deposit etc. It's insane.
    I understand banks work on raw statistics but that only tells half a story. So if you're up to the eyeballs in debt but you pay it back on time at the minimum rate....You're a good customer? They should properly means test people.

    I've got several student mates with about 5 credit cards each!! Christ, only last year i got rejected by 3 credit card companies. That for me is enough evidence that banks prey on easy targets who they know are going to bang everything they buy onto a credit card.
    I pay for everything i own outright so i'm a **** customer in their eyes.

    EDIT: In fact, one of those 'poor students' was called in to see his bank manager last week who tried to sign him up to ANOTHER card with an higher credit limit. Banks want customers to stay in debt, make no mistake about it.
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  33. Amchlolor
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    Amchlolor Active Member

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    These student mates of yours must, at least, be able to make the minimum payments all the time though?
    They wouldn't get more cards if they had a history of missing payments.
    So, from that point of view, they have a good credit history.;)
    Also, from that point of view, they are the ideal client (always just paying the minimum).
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  34. PNH80
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    PNH80 Low life livin' the high life.

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    Yeh i agree totally, as crappy and immoral as it is, these people are ideal clients. EVERYTHING they buy goes on a card and then they take forever to clear it.

    My ex girlfriend got herself up a shitty creek with credit cards (£7000 approx) and she was only just making the base payments every month. And guess what.... She gets a call from the bank manager offering to double her credit limit.
    Surely to christ they know what's coming and going from her account? They must know she's scraping by as it is!
    Banks have got a lot to answer for and i think it's wrong for the government to bail them out.
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  35. mac1403
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    mac1403 Member

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    But surely that is the problem. Banks offer special rates to people who can just make the minimum payment. Its not rocket science that these people are not the most financially astute. The lower rates are a huge carrot to low the minimum payers....this is how people suddenly find themselves owing 10's of 1000's and never making any headway with the repayments. The banks then have to accept a financial settlement (which is usually considerably lower than the amount owing) This loss then gets passed on to others in some way or form
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  36. davemk
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    davemk Member

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    It makes me laugh when people blame the banks for them getting into trouble with money. The banks are there to make a profit. They're businesses, not charities!

    People need to take more responsibility for their own actions. Just because a bank will lend them money, doesn't mean they have to accept.
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  37. marriedblonde
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    marriedblonde Moderator

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    But the bank lends to people over the age of 18 who are supposed to be able to make sensible decisions. What your actually saying is that banks should only lend to be clever enough not to get into debt?

    So using that same logic should garages onl sell cars to people unlikley to crash them? Or do you think it's a garages fault for selling a certain car to a certain person?

    J.
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  38. marriedblonde
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    marriedblonde Moderator

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    Exactley if banks only gave credit to people who pay it off all our mortgage rates, loan rates etc would go through the roof.
    #38
  39. Amchlolor
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    Amchlolor Active Member

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    I'm not so sure they lend knowing the client can only make minimum payments.
    If the client chooses only to make minimum payments, that's their decision.
    I've known people lie about their earnings when applying for loans/credit cards too.
    How are the bank to blame for that?
    What happened to personal responsibility in this country?
    It's always someone else fault.

    (beaten to it by Dave and MB;))
    #39
  40. PNH80
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    PNH80 Low life livin' the high life.

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    If you work on the example i just gave of people i know....

    It would be the same as a garage monitoring some one's driving, seeing they speed excessively everywhere endangering the lives of others, then recommending they buy a faster, worse handling car. They know that person will get into the **** at some point but it's an easy client to sell to and they know they'll make easy money.

    So it's fair that banks target people who they know owe more on credit cards than they actually earn?

    I know what you're getting at MB, but banks have a responsibility.... It's the same as a bar tender refusing to serve some one who;s already had too much to drink.
    #40

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