Among the Mail reporters’ findings: In some cases, dealers are contributing up to £1,000 to the personal contract purchase (PCP) deals and offering zero per cent interest rates as incentives. Some UK car salesmen are " forgetting the lessons of the past " by selling vehicles to customers on low wages or with poor credit ratings , prompting fears of mass defaults and a crash in the market . The risks stem from long - term personal car purchase deals , under which customers lose thousands of pounds over several years , a cycle which is also depressing the second - hand car market . The Bank of England warned car finance debt incurred by UK banks has risen 15 % in the past year to £ 58bn and that banks could lose up to £ 1.7bn ( $ 2.2bn ) if the price of second - hand cars keeps falling .
Some UK car salesmen are " forgetting the lessons of the past " by selling vehicles to customers on low wages or with poor credit ratings , prompting fears of mass defaults and a crash in the market . The risks stem from long - term personal car purchase deals , under which customers lose thousands of pounds over several years , a cycle which is also depressing the second - hand car market . The Bank of England warned car finance debt incurred by UK banks has risen 15 % in the past year to £ 58bn and that banks could lose up to £ 1.7bn ( $ 2.2bn ) if the price of second - hand cars keeps falling .