RESSE

iTrader: (1)

I have a car at present (does not matter what it is but is not a Scoob, as I sold my 1994 WRX earlier this year).

I am desperate to get back into a Impreza......and my current car is worth approx. £13,000 with a HP settlement figure of £18,000 (£5,000 defecit). Does anyone know of a dealer who will increase the price of a new/used car (probably used) to take up the shortfall?

i.e buy a £12,000 scoob for £17,000? I do not know whether it can be done or not.............HELP PLEASE............Thanks in advance

Richard

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fast bloke

I would imagine most dealers would be happy to do this. Most finance comes from outside the dealership anyway, so they get commision based on what you take on finance, and they are guaranteed the money. I've spoken to a couple of dealers who actively encourage it. Easiest way to find out would be to give your local delaer a buzz

RESSE

iTrader: (1)

FB - thanks I will give them a try!

MikesWagon

Just a thought, but what sort of negative equity is this then going to give you as soon as you get Scooby'd?

Not trying to put a damper on your plan, but it's something I've wondered myself in the past.

Mike.

MattN

it's easy to do as a typical used car sale invoice looks something like this

Purchase price 12000
Part Exchange 13000-
Settlement HP 18000

Total Due 17000


But when you say your car is worth 13k is that what your going to get as a PX or what you want. Also, a dealer will be making a profit on th 12k scoob so it's true value is nearer 10k. There may be concerns over the value of the loan compared with the value of car it's secured on. Now we all know cars depricate quickly from new so there must be an allowance of some sort but 70% may be pushing it.

How old is your current car? You may find the depriciation slows down soon and in 12 months the negative equity may be less I.e car depricates another 1k but loan settlement is 2k lower.

RESSE

iTrader: (1)

Current car is a Vauxhall Frontera Sport RS V6 3200cc 24 valve with all the toys fitted, car registered 01/01/2001 currently showing 8,000 miles and I paid 18,400 for it from a Vauxhall main dealer, may be worth closer to 14-15,000??????

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boomer

Bet ya couldn't get yer Frontera under the barriers at the McDonalds drive-thru

mb

RESSE

iTrader: (1)

Boomer - how u doing?????????????

PS I drive straight through the barriers - LET'S OFF ROAD ..........etc etc

ptholt

The thing you have to bear in mind here is that the hp company will check how much you are borrowing compared to the value of the car listed in glasses guide or cap (retail) and if you seem to be paying way over the odds they will not finance it.

They will be fearful that if you throw the car back at the HP co they will have equity problems themselves trying to get rid of it.

What you need to do is twofold.

1. find a car thats quite low priced as this gives you room to adjust the figures to suit you. (and haggle to try and get it cheaper if poss).
2. when proposing the finance make sure they go into good detail explaining the cars immaculate condition, LOW mileage, and every conceivable extra in the parts catalogue (this will help to explain why it may seem expensive) If necessary take some digital photos of the car and send them over to help show that the car is a prime example, hence more money.**

** - i've done this with first national motor finance when trying to sell a seriously modified mr2 turbo which was WAY over book. (well it was compared to uk model).



[Edited by ptholt - 11/29/2001 11:28:52 AM]

blair

If it is a true HP contract can you not just return the car to the HP company and call it quits ?

I think you have to have paid at least 1/3 (maybe 1/2) of the instalments in the agreement before you can do this.

I did it with my MX3 which I was trying to sellprivately in a dead market to buy my current scoob.

Strangely the HP companies don't volunteer this information, you have to ask. I'd give them a call and ask about it to see if you can save yourself £5k.

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iTrader: (1)

Mnay mnay thaks for all your very helpful hints.

Thanks guys...................

Rob FTM

Mr Blair,

You are correct. I've just done it with a Scooby. Nothing doing regarding selling it privately and because I had already taken a SERIOUS loss on the bloody thing then a few more quid to get out of a deal was well worth it.

Don't let the finance company put you off by saying that they will put you on a "credit blacklist" because they cannot. They can however make a note to experian or whoever to say that you have had a voluntary termination of agreement but this has not affected my ability to get credit.

Rob