NeVeTaS2001

I'm thinking of buying a new car, trouble is:

I brought mine in 1998 for £17,000 took out 5 years finance. I've paid it off now for 3 years, settlement figure is £7,000 however the car is only worth £5,000.

So I need to pay someone £2,000 to buy the car.What if I just stop paying the finance, then they repo the car?

Anyone got any ideas, or am I fuc*ed :-(

LEE P

Hiya mate, not a good idea to stop paying for it as you have paid more than 50 percent of the car off, they will be reluctant to take the car unless you instruct them to.
only problem is they will send it to auction and it may only bring 3500 pound then you will have to pay 3500 to get out of it and no car!
if your next car is new or nearly new then trade in your motor try and get as much deposit you can tell dealer you situation and see how much they can play with the figures to make yours worth more on paper, so in theory your financing the negative equity of your old car on the new one, not ideal but it gets you out of the old motor. then maybe do a lease purchase to keep your monthlys down, but have a sensible final payment so your new one dosent end up in negative equity again. all depends on car and mileage per year, but if a dealer says it wil be worth 8500 in 3 years for a example suggest a figure of 4500 to 5000 and see what the monthlys come out at on there computer, atleast it leaves a bigger safety net.
get a few quotes from different finance houses, BMW finance do a good rate even on non BMW vehicles, get a quote from the deale where he car is fom and then take it to BMW and ask them to beat the quote. hope it helps
just my 2p worh
Lee

SteveYeowart

LEE_P sorry but thats absolute rubbish!!


My last scooby was worth less than what I owed on it so I wrung the finance company to find out what I could do, and was told as I had paid off 50% of the total finance I could just give it back to them provding it wasn't damaged and they would werite of the remainder of the loan sending the car too auction. I enquired about what would happen if the car didn't make as much as I owed on it at the auction, they replied it doesn't matter you won't owe us anything it is your right as a consumer... they even offered me the car an RB5 at auction reserve price which was £11,000 !!!!!!!!

So if' you've paid half the total of all the finance ring 'em and get shut easy!!

And if your worried about being black listed don't be, it doesn't go against you,I've bought a new car and got a several other loans a new credit card since. In fact having talked to a relation of mine, who's a bit of a wheeler dealer he informed me his last 5 cars all from the same dealer he has done exactly this with as it was the most cost effective way of buying the cars involved!!!!

47 NAT

If you read the 1/2's and 1/3's on your contract you can do a voluntary termination and this will give you the get out of jail free card you need and will save you £2k...After-all its not as though the Finance Company is going to go broke over it

Nath

mbc

vt it mate (give it back), i did this once with no hassle,just ring them up and they will tell you to put it in writing then they will contact you and tell you where to take it,as long as its in good nick with mot,fsh etc etc then you shouldnt have any problems at all,i had to take my old car straight to the auction house

mike

p.s some people say you will have trouble getting finance with that company again but thats bull cos my next car was financed with them.(ge capital),this was all 2 years ago though

Z75

£12,000 in 3 years! Bloody heck, what car did you buy?

You could always try selling it privately and you would definitely get more than the dealer is offering you. You will have to pay off the finance first though (with a personal loan) otherwise the finance will show up on the HPI check.

MichelleWRX1994

I had no problem selling my Puma back with HP - a price was agreed, I paid the difference and off it went. The finance company knew as well and it was a case of as long as the figure was settled before the car was handed over everything was okay.

As long as the buyer is fully aware of the situation and in agreement of how to settle the figure there should be no problem..........best in writing too.