FrenchBoy

Anyone used them? I've got a mate who reckons they're offering him 4.9 APR on a loan of £5000!!!

I've asked him several times if its "APR" not monthly and he says yes.

This sounds too good to be true! So it prob isn't, anyone else had a loan from these guys?

OllyK

I may be wrong, but from their adverts I get the impression that they are targetting people with less than brilliant credit ratings, people that the banks and main dealers wouldn't touch. If this is the case, I would expect the APR to be way higher than normal as they need to mek more profit to cover themselves against the defaulters, may be wrong but that's how I see it reading between the lines.

Hanslow

Is this a secured or unsecured loan?

Could probably understand it on a secured as if he defaults, they get his stuff

FrenchBoy

Thats the way i see it too, i thought these guys are the car equivilant of loan sharks.

I just cant beleive someone would be offered 4.9% on a loan of 5k. Thats better than some mortgages!!

OllyK

Their website says typical APR 19.9 % - seems like a hell of a discount to me!!

FrenchBoy

Hanslow,

i think they secure it against the car, and you have to buy the car from one of their showrooms.

suprabeast

and you'll probably find that the car they allow you to have is over priced anyway!

jjones

m8 went to one of these places.

they took his driving licence and he had struggled to get it back without accepting credit terms. they figured out how much they could milk him for and then showed him 4-5 cars that fitted this budget (none of the cars had screen prices). they then bombarded him with figures and kept telling him what a good deal he would be getting. when ever he asked a question they left the room for 15-20 mins and then returned with sketchy information. he asked them how much the total repayments would be but they shirked the answer so he took his phone out and did the calculations on it. think he worked it out to be something like 10K for a car worth 4k over 5 years of payments.

bargepole don't touch

Buckrogers

Yes car credit appeared on Watchdog not so long ago, dodgy practices, steer well clear IMHO.

SiPie

Dodgy.... stay away

Extortionate rate of interest as most are bad risk

NACRO

Yes car credit has a very bad reputation- I very much doubt things are as they seem. They are a rip off outfit, do a few google searches to reveal the truth.

FrenchBoy

The more i think about it, the more i'm convinced my mate has been told a load of old cack!!

I've already told him he'll be mad to have anything to do with them.

He wants a SUV anyway so i suppose he deserves everything he gets!!!

cheers for the replies.

Newbie123

you sure there is a demical point between the 4 and 9 ?

49% APR seems much more likely from them.

WRX Wannabe

Yes you can get a car if you have a poor credit rating

2/3 years old with 80K - 100K on the clock and pay 2K over the top for it

ITS A CON stay away

imlach

He will have been quoted the flat rate, not the APR. It is the oldest trick in the book. While he was probably being told it was the APR, I suspect the numpty/devious c*nt at the other end would just have made a "mistake" if challenged.

Ask for the quote in writing.

They are legally obliged to tell you. They won't like it, but they HAVE to tell you.

The lowest unsecured loan around right now is about 5.9% APR from Cahoot.

fast bloke

I have come across two clients with Yes car credit - One of them bought a 3 year old 106 for 4.5k (I thought a new one was about 5k?) The charged him an indemnity insurance of 3k and an arrangement fee of £1499.00, then an 'APR' of 6.9%.
Cost him £182.00 per month for 5 years. They also insisted he take out payment protection insurance for £28.00 per month.... total amount payable was £12600.00

If they applied the same APR rules that mortgage lenders apply (all mandatory fees and insurance must be included in the quoted APR) he would have been paying well over 50%

As above - unless it is the only way to get a car, stay away

imlach

Yes Car Credit as a business is NOT a con. It is not doing anything illegal in principle.

People with bad credit history have trouble getting credit. Lenders are takign a higher risk, hence the higher APRs.

It is also unfortunate that those with bad credit history are often the ones who are not financially astute.

You could say Yes take advantage of lack of financial awareness to some degree, but at the end of the day, the customer should be shown the T&C's, and be quite clearly told the repayment amounts, and for how long.

Obviously they sound like they may allegedly have some sharp practices in play, but so do a lot of companies (double glazing/kitchens etc).

imlach

With respect, if anyone is charged £4.5k up front in fees for a £4.5k car and doesn't see it at the outset, I could only assume they cannot read. Sadly, to pass the driving test, you need to be able to read, so I'm at a loss.....

fast bloke

imlach - the con is how they make it look like you are getting a good deal, and as you say, take advantage of a lack of financial awareness. As a mortgage broker, I could make a fortune arranging the wrong mortgages for people who don't know the difference. I don't do it because it would be conning them - even though they get all the information required up front, it is packaged in such a way to hide reality.

fast bloke

The small print ran to about 15 pages - all he was told was 'This 106 for £182.00 a month - sign here'

OK - So he wasn't the cleverst chap on the planet.....this is , as you have correctly stated above, the target audience

BTW - the car should probably have been 2-2.5k from a main dealer

imlach

Given the number of non-astute people around on here, I'm tempted to set up my own Yes car credit.

There's enough people on this BBS who don't understand risk v returns, and also another bundle who continually seem to think MLMs and pyramid schemes are going to work.

I'd make an absolute mint from Scoobynet referrals alone!

fast bloke

mlms do work - if you start at the top

I was thinking of setting up my own pyramid, with my name on the first 5 levels - I could then sell my idea to others for £99.99 a time - I could set up a website called http://www.amazing2ndincomeforme.com

PETENAUD

Better way

Put away £182 per month, but first go to the car auctions, buy a car for £25 with 6 months mot, yes u can get them, do this for 1 - 2 years and then go buy a car cash with the money saved, buy it private, haggle and wave the dosh about.

Even if you only save for 6 months u will have over a grand.

Yes car credit buys ex fleet cars with between 50 - 80k miles on them, then sells them for top money, stay clear.

Dazza01

and if you ever drive past the Yes car credit showroom (well i use the term loosely) in Nott'm, u will notice that they never put the asking price for the car on the screen.

WELL DODGEY, STAY AWAY

ProperCharlie

their business model is dependant on obfuscating the true cost of the agreement. IMO that makes it a con. the fact that the people who are conned are conned because they are not asking the right questions does not make it less of a con. had the same bl**dy thing with a ford dealer:
"how much is this car?"
"well after the part exchange you have offered us, this car will be within your indicated budget, sir."
"no, but how much is the car if i were to buy it for cash?"
"well if we say that we will give you 9.5k for your p/x, the balance will be £xxx, sir."
"no, but how much is the actual car that you are selling, forgetting about the p/x for a moment?"
"well sir, i would have to check that with my manager."
"so you are selling something without knowing it's price then?"

Rally

I had a similar APR discussion with a Citroen main dealer who quoted me APR and then added administration fees on top.

The practices of YES do seem to pray on the members of society that are maybe the ones in most need of financial advice.

Going with what PETENAUD said, on a Thurs in Leeds is £25 and above night, there are loads of cars there from YES (and others) that they have taken in PX or as deposit, many are nice cars, just getting on a bit.