"Drivers may face tougher affordability checks to qualify for car loans amid fears of a new financial crisis triggered by pay-as-you-drive deals.
The amount of money being borrowed to buy new cars has trebled over the past eight years to more than £30bn and there are growing concerns over the lack of financial checks made on potential borrowers.
Motorists can be offered loans worth more than their own salaries in a growing scandal which has echoes of the sub-prime mortgage boom which helped spark the global financial crisis.
Last night the Bank of England confirmed it is investigating car financing arrangements which could lead to regulators enforcing tougher affordability tests, potentially similar to those used on mortgages.
Nine in ten new car sales are now financed by "personal contract plans" which can enable people on low incomes and poor credit histories to afford brand new top-of-the range cars. "
Drivers face car loan crackdown to avoid new financial crisis
The amount of money being borrowed to buy new cars has trebled over the past eight years to more than £30bn and there are growing concerns over the lack of financial checks made on potential borrowers.
Motorists can be offered loans worth more than their own salaries in a growing scandal which has echoes of the sub-prime mortgage boom which helped spark the global financial crisis.
Last night the Bank of England confirmed it is investigating car financing arrangements which could lead to regulators enforcing tougher affordability tests, potentially similar to those used on mortgages.
Nine in ten new car sales are now financed by "personal contract plans" which can enable people on low incomes and poor credit histories to afford brand new top-of-the range cars. "
Drivers face car loan crackdown to avoid new financial crisis
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