nyneil
Member of DD Central
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Post by nyneil on Dec 19, 2021 14:44:59 GMT
If they go down the luxury car route, I hope proper checks and due diligence are carried out; HPI etc. Yes MT, I'm thinking of your incompetence here
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Post by Ace on Dec 19, 2021 15:01:58 GMT
My concern, as it was with FS, is the number of Rollovers. At what stage will the borrower just say enough is enough and allow the item to default? CL need to reappraise the item at every rollover, especially watches, as the value declines with time and this will increase the LTV and risk profile.. I could be wrong, but I don't think watches depreciate. The number of rollovers depend on each borrower's personal circumstances. I recall some rollovers continued for few years on other pawn platforms. Regardless, I'm pretty sure I've seen some rollovers on CL where the security value has changed, so I assume that they do revalue the assets at each rollover. It would good if connectivelending could confirm this.
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Post by df on Dec 19, 2021 16:58:11 GMT
If they go down the luxury car route, I hope proper checks and due diligence are carried out; HPI etc. Yes MT, I'm thinking of your incompetence here ... and FS gave us slices of the same loan. If I ever come across pawn loans secured on vehicles I will want to see copies of all documents proving that the item is in legal and physical possession of lending platform before committing any funds.
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Post by connectivelending on Dec 19, 2021 20:27:08 GMT
Dear All, Just to answer one or two points as I read this thread. 1 : A renewal would only be a renewal of the same loan and asset. If a borrower wanted to take or add any items to a loan this would be posted as a redemption and then a new loan with descriptions added. 2 : I have lent on many cars over the years and always added a HPi marker, (we have an account) and taken possession. I have mentioned this on previous posts : the first rule of pawnbroking is you take control of the asset !! I have heard of the stories where other lenders have left assets with borrowers which as a lifelong pawnbroker makes me feel physically unwell !!!. 3 : We will consider vehicles and you can be sure that we will look, not only, at value but also at length of time to sale when deciding on LTV's. Whilst asking prices can be seen easily on the internet that does not mean a vehicle will sell quickly unless sold well below the market asking prices so this is an important factor. Auctions are a fairly safe way to deal with disposals but again not everything sells first time so the type of vehicle is important. A Classic Mercedes vs a Classic Fire Engine would be a good example of size of market and ease of sale for example. LTV will play a big part in both our decision and your judgement of our decision when you decide to invest or not.
Kind regards and Happy Christmas to all. Danny Grimes
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Jaydee
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Post by Jaydee on Dec 20, 2021 14:06:11 GMT
My concern, as it was with FS, is the number of Rollovers. At what stage will the borrower just say enough is enough and allow the item to default? CL need to reappraise the item at every rollover, especially watches, as the value declines with time and this will increase the LTV and risk profile.. I could be wrong, but I don't think watches depreciate. The number of rollovers depend on each borrower's personal circumstances. I recall some rollovers continued for few years on other pawn platforms. Watches, especially luxury ones, Rolex, Omega etc etc do depreciate with time. Look at the watchfinder.co.uk site as an example. Whilst there may be minimal deprecation over a 6 or 12 month period, any longer than this may see the initial pawn value decrease.
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Post by df on Dec 20, 2021 15:52:34 GMT
I could be wrong, but I don't think watches depreciate. The number of rollovers depend on each borrower's personal circumstances. I recall some rollovers continued for few years on other pawn platforms. Watches, especially luxury ones, Rolex, Omega etc etc do depreciate with time. Look at the watchfinder.co.uk site as an example. Whilst there may be minimal deprecation over a 6 or 12 month period, any longer than this may see the initial pawn value decrease. I'm no expert, so had to go by reading a number of articles on the subject and summarise the results. It appears that some brands (Rolex, Patek Philippe, Breitling, Omega) grow in value, whilst some others depreciate.
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Jaydee
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Post by Jaydee on Dec 21, 2021 12:26:17 GMT
Most luxury watches will lose value over time. The only way to prevent this is to keep it in it's box and never wear it. For a watch to increase in value it needs to be exclusive and rare. Generally the watches pawned are "run of the mill" albeit luxury watches. Look at the pawn value of the Rolexes on CL and how much this has dropped from the original purchase price. The Rolex SS date-just would have cost around £5k new but is valued at around half of that now. The same applies to other pawned watches.
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toffeeboy
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Post by toffeeboy on Dec 23, 2021 10:59:41 GMT
My concern, as it was with FS, is the number of Rollovers. At what stage will the borrower just say enough is enough and allow the item to default? CL need to reappraise the item at every rollover, especially watches, as the value declines with time and this will increase the LTV and risk profile.. But you don't have to renew when the borrower renews so it shouldn't be a concern. Each six months is a new loan whether a renewal or not, the only difference is that those that were in the previous loan get first dibs is all. It has been mentioned before that the value is reviewed at time of renewal.
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Post by Penny Pincher on Dec 24, 2021 14:26:31 GMT
Most luxury watches will lose value over time. The only way to prevent this is to keep it in it's box and never wear it. For a watch to increase in value it needs to be exclusive and rare. Generally the watches pawned are "run of the mill" albeit luxury watches. Look at the pawn value of the Rolexes on CL and how much this has dropped from the original purchase price. The Rolex SS date-just would have cost around £5k new but is valued at around half of that now. The same applies to other pawned watches. Of course many/most watches depreciate from their original retail price but a pawn broker doesn't value a watch by the original retail price, they value it at the current likely auction price. I would imagine, that most luxury watches, whether or not they are exclusive and rare, hold their auction value when not used and stored properly. The key is that initial valuation, if this is accurate then I don't think any potential fall in value over 6 months is likely to trouble the buffer built in to the LTV ratio.
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Post by overthehill on Jan 6, 2022 15:00:51 GMT
When you have a loan about to be renewed, do you need any funds in your account ?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 6, 2022 15:33:12 GMT
When you have a loan about to be renewed, do you need any funds in your account ?
To do what? If you are just rolling over your existing investment then no, the system effectively ringfences your allocation in the new loan until the old loan is repaid and the funds can be moved over automatically. If you want to change anything, say reduce your holding or change tranche then you will need funds to invest the new sum as the existing funds wont be repaid until after the loan is filled & goes live.
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Post by mfaxford on Jan 6, 2022 17:51:11 GMT
When you have a loan about to be renewed, do you need any funds in your account ?
If you're rolling over an existing loan make sure you've set it to renew at least an hour before the new loan goes live. Everything else is as ilmoro has already said.
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iRobot
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Post by iRobot on Jan 28, 2022 12:28:57 GMT
I maintain a web monitor on the Ts&Cs pages of sites I am either actively involved with or, as in this case, might be considering. My monitor for CL threw an alert yesterday (27/01) to let me know that the following had been removed from the displayed Ts&Cs in section '5.2 Lending': It's possibly CL just tidying things up in the absence of an SM? Or maybe clearing the decks in readiness for an SM launch (and the additional Ts&Cs that go with it)? Dunno. connectivelending ??
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 28, 2022 13:22:11 GMT
I maintain a web monitor on the Ts&Cs pages of sites I am either actively involved with or, as in this case, might be considering. My monitor for CL threw an alert yesterday (27/01) to let me know that the following had been removed from the displayed Ts&Cs in section '5.2 Lending': It's possibly CL just tidying things up in the absence of an SM? Or maybe clearing the decks in readiness for an SM launch (and the additional Ts&Cs that go with it)? Dunno. connectivelending ?? 2.5 days of maintenance and updates on the website coming
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Post by Badly Drawn Stickman on Jan 28, 2022 13:22:17 GMT
I maintain a web monitor on the Ts&Cs pages of sites I am either actively involved with or, as in this case, might be considering. My monitor for CL threw an alert yesterday (27/01) to let me know that the following had been removed from the displayed Ts&Cs in section '5.2 Lending': It's possibly CL just tidying things up in the absence of an SM? Or maybe clearing the decks in readiness for an SM launch (and the additional Ts&Cs that go with it)? Dunno. connectivelending ?? May be connected. The site is down for routine maintenance from 6 o'clock tonight till 31st?
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