I have an STIv4 on "baloon" finance.
The min guarenteed future value is set at £15,500.
My question is - does this put me in a good position or not ?
A low mileage STiv4 is probably worth about £15k at present, but my agreement has another year to run - by which time it will be worth (estimated) say £12/13 very max ??
The car is actually financed with IM, so does this mean I have to pay the £15k in a years time to break the contract?
My intention was to PX for a new shape Impreza but looking at the piccies I am now not so sure....

Brew.

[This message has been edited by BrewandBake (edited 26-07-2000).]

If you've got a guarantee of £15,500, then that's the minimum that you'd get for the car as a trade in, assuming you haven't broken any maximum mileage agreement and your car has no more than "fair wear and tear" wear and tear http://bbs.scoobynet.co.uk/smile.gif

If you choose not to trade up when the contract expires, you've generally got two other choices - pay the balance (which would appear to be a minimum of £15,500), or walk away. You only retain some kind of equity in the car if you continue the contract. The car becomes your total property if you pay the balance. If you walk away, you get nowt, but you're free to start again with another make or model.

Brian

Brian

Following on from what you have just said, as Brew's finance is with IM if he trades up can he go for another make or does it still have to be a Subaru? - not that anyone would want anything else of course http://bbs.scoobynet.co.uk/wink.gif

Peter

Thats one thing thats on my mind - The new Impreza looks pants & I am now not sure I want another one if it looks like that.
Plus this is my 5th year of Impreza Turbo owneraship & I fancy something else...

Brew

I was talking this issue through with the guys at Lancaster when considering a P1. They would have been more than happy to let me change 'makes' at the end of the contract providing I bought a car from a dealer in the Lancaster group.

May not help the current problem, but something to bear in mind for others

Yex

Peter,

The contract is with the finance company (in this case, IM) via the dealer. I'd guess that IM provide a service to their dealers' customers to ensure they keep as much of their customers' money as possible. In that case, I'd reckon IM would be happy to continue the finance deal on any make that the dealer can supply (perhaps not restricted to Subaru or Isuzu). I'd start by speaking to the dealer.

Brian

Cool.....the dealer is Bell & Colvill & they are a Lotus dealership - I feel its time for a new M250 (or whatever its called) to grace my drive !!

Brew

I know Audi Finance do it and I suspect other do if you want one of their cars they will buy out your contract and bundle it with a new one if you have anything left outstanding. So you can trade in anywhere that will do this.

When looking at a P1 on PCP, I found James at hawkins Fleet very helpful, and extremely competitive - ie, he matched the best deal I got through any Scooby dealer (including Lancaster at 7oaks) - You can call James on 020 8979 8181,

The point being, at the end of the contract, you are free to go for whatever car you choose - any marque / model. I just decided that the PCP deal was too pricey for what I wanted. The P1 worked out at £37,700 over the three year deal....and instead I've opted for a Type RA from Japan.

Just to clarify a couple of the points raised, you are not tied in to an I M(eg Subaru,Isuzu,Daihatsu) product when deciding which car to buy next.Your GMFV is only really bought into play if you "walk away" at the end of the term.
I am surprised that you have got a GMFV of over £15k, the U.K models carry around £10K- are you sure you're in a PCP scheme or is it a Lease Purchase?
I'd be interested to find out.
Frankie

Frankie

Using very crude maths it seems that MGFV's seem to be roughly 50% of the cars new value - ie £10k for a £20k uk car.
This follows with mine as the original first owner of the car paid just over £30k for it !! This was back during "Impreza Mania" when residuals were rock solid & demand was well over a year. Different story now though.

Brew