General 1.4 16v Sporting to a . . . . . ? NEW CAR TIME

[Obrooks]

ok so im 21 and have 2 years NCB so insurance is rather tasty now. im looking at getting rid of my 08 plate 1.4 16v sporting starjet and getting a 1.9mjet for more power and the economy of diesel although if i see an abarth i might be tempted!

just wanted to know, from guys who prob have more experience than me, what is the best way of part exchanging/selling/getting a new car if im in a finance deal with around 7k still owed to them? on generic sites my car comes up as being worth between 6 and 7k. i know its best looking for deals, but what do you guys think is best way about it from your experiences?

Cheeeeers dudes/dudettes.

 

[Tris Harris]

you may just find your in a bit of negative equity, but it all depends on where they put the figures.

The figure to focus on is the cost to change

if your going with finance again, some garages are offering very good rates of 5% at the moment... dont be fooled by some garages offering 0%, they usually cover the interest by putting it on top of the cars price

 

[Obrooks]

yeah im expecting a tad of negative equity, but im paying far too much a month for mine now (£240) and i need to bring monthly outgoings down, so although i might lose some initially, i will save on how much i have going out each month! hence the possibility of a diesel for fuel costs.

 

[Garree001]

If you spend an extra £2k initially, you will never see that back in a diesel unless you do like 20k miles a year for 3 years. If you are in negative equity, expect to have to pay a large lump sum in order to get you out of it. Especially if you want to get a good AER on the loan. Deposit plus breaking even on car finance might be expensive.

The way round this would be to try and apply for unsecured loans of a greater amount that pay off the remainder of your existing car and buys the new one. Problem with this route is the loan will probably cost more at the moment. If you live at home with your parents expect to have to pay around 15 or even 20% interest. Living at home harms your credit rating - badly... It will also take more time to do, whereas financing a car is a faster way of getting one.

 

[Obrooks]

cheers dude helps a lot. to be honest because i was an idiot when i was 18, got into debt, then paid it all off, and never missed any payments or anything, my credit rating is very good and my bank offers me really good rates. also im a plus customer so i get more off again. so maybe this could work out quite well. i did consider a bank loan to cover the whole amount but if its starting to look like it wil cost me loads im not going to bother. i just really want to get my monthly costs down its killing me paying out £320 a month before petrol when i could be in something nicer for that amount.

im gona go to a few dealers this weekend see what they say and can offer me, and speak to my bank too. only way to truly find out i suppose.

 

[punto_matt]

Personally i would sell your car privately, pay the finance off then go to the bank and get a loan for whatever new car you want. That way if you change your mind and want to sell in 6months or a year or whatever then you own the car outright so you can sell it easier and you wont have big penaltys to pay on a finance agreement.

 

[Obrooks]

yeah another option i considered. just didnt know if part ex etc was a cheaper way around it. i know i will probably get a bit more selling it private than i wil part exchanging. and last time i rang finance company they gave me quite a good figure to pay out early. might see less negative equity that way too. hhmm!

another option ive got is to just hand the car back to finance company after half of payments have been made, which is in another 7 or 8 months yet, which seems more sensible, but in those 7 or 8 months i could be saving £100 a month on finance costs, and because im over my average mileage they would probably give me a nice bill for that.

 

[punto_matt]

P/ex value will be low. I got offered 5.5k for mine a month ago lol

 

[Obrooks]

ha yeah i know then they would whap it on the forecourt for 8k. just business i suppose but fecking annoying!

 

[kenyon]

ok i was in a simular situation last month but i owed 12k. so what i say is only from my own experiance.

if you want to apply for a loan even if you have a perfect credit history, you might not get accepted.
reason being say you earn 10k a year and you have a loan for 7k and need 7k to pay it off. they work it out asthey will lend you about 20%of yearly income + yearly income so 12k and the. you allready have 7k taken out of that so they will only lend you 5k. if that makes sense and that is based on a perfect credit history.

so then your best bet would be to ell the car.... untill the person finds out there is existing finance on it and then you back in the same situation.

you could part ex it if you can find a garage that will accept a car with finance owing on it. if you can lucky you i couldnt.

so best bet is to find a way of borrowing money off a family member pay the finance off.leave it for 6 months paying your monthly payments to family member and then get a loan to pay them back.

needless to say i am stuck with my car as my yearly income is only 13k like hiting my head against a brick wall ! let me know if you find a solution..

 

[Obrooks]

yeah i see where you are coming from but i have a well paid job for an IT company so getting a loan wont be an issue, they have rang me a few times offering me £15k loans at 9/10%. My bank like me

but yeah its a really annoying situation aint it. when i first got the car it was a really good option for me, suited perfectly, but now it just doesnt, and i know i could be in something far better for the money im paying. hopefully the bank can give me a decent loan and i can do it by selling privately, looks like best option so far!

cheers for all replies guys

 

[punto_matt]

What do you think you can get for £250-300 a month? And over how many years?

 

[Obrooks]

something with a slightly larger engine that what i have now thats what lol

edit - and if i get a loan i would work out over how many years works best for me. suppose it all depends on what figures i get when i look into doing it in the next few weeks.

 

[Garree001]

Those offers will still be subject to credit checks. They did this to me and then because I still lived at home - they whacked 5% on for the hell of it. And at the time, I had not a single mark against my name and only a good payment history spanning years. So just be warned that they may do this if you do live at home - hopefully they won't though. And my job is in local government - which is quite good when banks are looking at the risks associated with loans.

 

[Obrooks]

im pretty sure when they rang they said looking at my history and income etc etc they can offer me those rates. but yeah i never take anything for granted until they seal the deal with the same figures, which doesnt always happen!

 

[Tris Harris]

just after reading some of the reponses, they wont necessarily whack a lump of interest on because you live at home, they didnt for me! Im not saying they might not either though.

Obviously the best way to do it would be to sell yours privately and pay your finance settlement figure, but depends if you can be without a car for whatever amount of time... or can afford 2 loan repayments in the same month...

IMO (and its what i did) the best way to do it is to find the car you want and then tell the dealer your settlement figure, then they will work all the figures around that and will just finance the total new amount including any negative equity you may have... I was lucky, took out a 5 year finance deal and managed to escape negative equity after only 9 payments

 

[Obrooks]

yeah that way seems good apart from the fact they give you next to nothing for your car so i feel id be losing out quite a lot doing it that way, would save all the hassle obviously because they would sort it all, but stil, you lose enough on cars as it is i think id feel robbed getting say 5k for it and then paying the rest ontop the cost of my new car.

 

[Garree001]

And the best finance deals require a fairly good deposit... Main thing is that you get a car you'll love

 

[MrSaffron]

so then your best bet would be to ell the car.... untill the person finds out there is existing finance on it and then you back in the same situation.

you could part ex it if you can find a garage that will accept a car with finance owing on it. if you can lucky you i couldnt.

Maybe things work differently here in the antipodes but so what if the car has finance on it when you try to sell it privately? Just pay out the finance with the cheque from the purchaser (have him make it out to the finance company) and make up any negative equity and/or early exit fees yourself. Then you are back to square one and you can go out and crunch a dealer or a private seller for the car you want...

I have NEVER traded in a car just like I have never handed over thousands of dollars to a stranger on the street for no reason... Dealers will give you the WHOLESALE value which is often ~ 20% less than market value should you be buying the same car. Sure, selling a car privately is a pain in the arse because you have to deal with idiots but is the hassle worth the money you'll throw away by trading it in?

Having said that, it is appealing to drive in to a dealer and drive out with a new car but you pay for that convenience... If money is an issue then you should go shopping with CASH not an UNWANTED CAR because that puts you in strong position. You can even do well on the finance by teasing the dealer a bit. They will try to sell* you finance so you tell them, nah, no thanks, I already use $finance_company, but hey, you can give me a quote for say $x,000 over 4 and 5 yrs. When I did this I was very surprised because the dealer quote from Toyota Finance was significantly better than the quote from the finance company I had my wife's car with... WIN!

* Finance is just another product... People seem to forget that by talking about credit ratings, application forms, penalty rates etc... Another comment you can drop to finance ppl is something along the lines of "well, if you can't finance this for a sensible rate then I will just pull the money off my mortgage at ~ 7%... That gets them sharpening their pencils...

 

[BGreatholder]

Not sure about with finance, but I managed to get a great deal from VW on a new scirocco GT that ill pick up soon, I ordered it just before x-mas but ive been down under in Oz so need to check the build status, didnt trade anything in though, giving the GPS to my girlfriend.

Just saying if you shop around, there are still some great deals about!

Do companies still give 0% finiance on certain stuff w/ a large ish deposit?

which ever option you go down in tearms of finiance, what ever the dealer gives you, i would walk away first and do some sums at home... the internet might give you better rates for things.