With
mortgage
lenders,
banks and
building societies electing not to lend to ‘risky’
sub-prime borrowers, it appears the impact of the
credit crunch has now reached into the
car finance sector.
Welcome Car Finance, one of the largest UK providers of
hire-purchase schemes for second-hand
vehicles, are now choosing not to lend to those borrowers with
heavy
adverse credit ratings.
Welcome have been regarded as a company who would lend no matter
what the circumstances, although often borrowers paid very high
interest rates for the privilege, some almost as high as
50%.
Welcome have around 700,000 customers, and revealed this week that
they would stop using
vehicle
brokers to arrange deals on their behalf. Now Welcome will only
offer
vehicle finance through their own
car showrooms.
Furthermore, Welcome will also concentrate on more expensive
vehicles, seen as posing lower risks.
