Comments on: Car leasing in England http://burlaki.com/blog/2009/07/03/car-leasing-in-england/ Wed, 10 Mar 2010 16:51:43 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Ilya http://burlaki.com/blog/2009/07/03/car-leasing-in-england/comment-page-1/#comment-7854 Ilya Wed, 08 Jul 2009 10:52:58 +0000 http://burlaki.com/blog/?p=2327#comment-7854 I don't have the statistics, Brian, but observationally, I do not feel the problem would be much greater than it is in America. I do not think the risk of default or the ability of the finance company to recoup losses is affected much by the unsecured nature of the loan here in England. I have to do some additional research to be able to intelligently explain it, though. I don’t have the statistics, Brian, but observationally, I do not feel the problem would be much greater than it is in America. I do not think the risk of default or the ability of the finance company to recoup losses is affected much by the unsecured nature of the loan here in England. I have to do some additional research to be able to intelligently explain it, though.

]]> By: Brian Greenberg http://burlaki.com/blog/2009/07/03/car-leasing-in-england/comment-page-1/#comment-7830 Brian Greenberg Tue, 07 Jul 2009 19:50:13 +0000 http://burlaki.com/blog/?p=2327#comment-7830 That's really interesting. So, basically, they're <i>giving</i> you the car under the condition that you take the (unsecured) loan. Defaults must be awfully interesting. I bet there's a significant number of people/cars each year that just go missing, with no payments and no sign of the person (or the car) to be found. Am I right? That’s really interesting. So, basically, they’re giving you the car under the condition that you take the (unsecured) loan.

Defaults must be awfully interesting. I bet there’s a significant number of people/cars each year that just go missing, with no payments and no sign of the person (or the car) to be found. Am I right?

]]> By: Ilya http://burlaki.com/blog/2009/07/03/car-leasing-in-england/comment-page-1/#comment-7795 Ilya Mon, 06 Jul 2009 16:58:39 +0000 http://burlaki.com/blog/?p=2327#comment-7795 Yes, exactly, this is pretty confusing. I own the car. Legal ownership and financial obligations get sort of separated in this scenario. The registration documents list me as an owner, and any insurance issues are to be dealt by me directly. If I choose to return the car at the end of the financed period, the ownership then is transferred to the finance company in the same way as it would be during a regular sale. The arrangement is akin to taking an unsecured personal loan to pay for the car. With a provision of using the vehicle itself for settlement of the final payment. Yes, exactly, this is pretty confusing. I own the car. Legal ownership and financial obligations get sort of separated in this scenario. The registration documents list me as an owner, and any insurance issues are to be dealt by me directly. If I choose to return the car at the end of the financed period, the ownership then is transferred to the finance company in the same way as it would be during a regular sale.

The arrangement is akin to taking an unsecured personal loan to pay for the car. With a provision of using the vehicle itself for settlement of the final payment.

]]> By: Brian Greenberg http://burlaki.com/blog/2009/07/03/car-leasing-in-england/comment-page-1/#comment-7793 Brian Greenberg Mon, 06 Jul 2009 16:01:07 +0000 http://burlaki.com/blog/?p=2327#comment-7793 Just out of curiosity (since I have no plans to procure a car in England any time soon): who owns the car during the PHP? In the US, the owner of the leased car is the financing company (my registration has the finance company listed as the owner, and when I had a fender-bender with my leased car, the insurance company dealt with them, and cc:ed me on documentation). From an admittedly American perspective, it strikes me as odd that you can sell something that isn't yours, or that you make monthly payments on something that is... Just out of curiosity (since I have no plans to procure a car in England any time soon): who owns the car during the PHP? In the US, the owner of the leased car is the financing company (my registration has the finance company listed as the owner, and when I had a fender-bender with my leased car, the insurance company dealt with them, and cc:ed me on documentation). From an admittedly American perspective, it strikes me as odd that you can sell something that isn’t yours, or that you make monthly payments on something that is…

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