BBC News item of the day, Wednesday 14th December 2005 – Yes Car Credit

I feel a little guilty about featuring this item, particularly as it relates to the failure of a business with the resultant loss of 820 jobs. The Yes Car Credit business is to close, apparently the core business model that it operated on is now unviable – check the content of the article as to why.

Together with the other numerous financial services adverts that feature on the satellite channels, the wee blonde lassie with the green body warmer made a brief impact on popular culture. Ok, so the advert was taken off on chewin the fat with their “Aye car credit” sketch. I say that is some indication of their level in contemporary culture.

From what I know they sold to what the banks call the sub-prime sector of lending, with corresponding cheap cars and interest rates matched to the risk of the market. I guess their margins were tight, and didn’t cope with the increased expectations on them. This makes me wonder how long the budget airlines will be cheap in the face of increased demand for the cover and service of the bigger airlines. I don’t get how people expect to pay peanuts then complain bitterly when their flight it cancelled. Surely the extra margin of the not-so-budget airlines is there to provide such “frills”? Or maybe I’m a bit soft.