End of the road for ‘cheap’ car loans as crisis looms – Telegraph.co.uk, The Telegraph

An era of cheap and easy car loans is coming to an end amid warnings from investors and MPs that the massive debt boom that has kept the motor industry on the road threatens a mis-selling scandal and a crisis.

Research by The Sunday Telegraph has uncovered evidence of a gathering storm that could hit millions of drivers, Britain’s biggest car dealers and some of the world’s top manufacturers. Last year Britons took on £ 19 bn of car debt, more than three times the figure a decade earlier.

It comes as:

• the lending watchdog prepares a clampdown on the market;

 

• one leading car dealer investor predicts cheap loans will “disappear quite fast”;

 

• the lender RateSetter exits the car finance business; …