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Expensive car loans cheating consumers

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March 24th, 2014


This article is more than 10 years old.

Hidden costs boosting new car prices

Car loans that initially seem like a good deal may wind up proving costly in the long run. Motorist organisation FDM and independent banking portal Mybanker say that loans for less than 100,000 kroner to purchase the popular mini-cars are especially problematic.

Although dealers offer competitive interest rates of 3 percent or lower, the cost of taking out the loan can often be as high as 15,000 kroner on an 80,000 kroner loan, effectively raising the annual percentage rate (APR) of the loan to nearly 10 percent.

“Car dealers are behaving like loan sharks,” John Norden from Mybanker told Politiken newspaper.

Have I got a deal for you
Allan Gunner Christensen from FDM said that dealers are making such a small amount of profit on the cars themselves that they are making up the difference by establishing their own loans and charging exorbitant interest rates. Christensen recommends that customers do their loan business with banks rather than car dealers.

READ MORE: Second-hand car sales streets ahead of new ones

Jens Brendstrup, the head of the Danish car dealers' association, rejected the criticism.

“The price of a loan is a commodity," Brendstrup told Politiken. “There is plenty of negotiating room.”


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”