upgrade my car on finance?

[Percyhahn]

as some of you probably know i have a grande punto 1.3 m jet. its great little car and i love her, but the travelling i do everyday (160 mile round trip) im thinking maybe a bigger engine bigger car may hold up better, plus a little extra power is always nice . iv always liked the bravos, and looking at some 1.9 diesel.
however i bought my car last year on a 5 year finance, of £211 a month with stoneacre. iv searched the forum, and looked at my contract, but couldn't find anything, and im not very good at legal phrases lol. so can i trade my car in with them for a bravo, would i need to pay charges or anything?
any help willl be great
cheers
pete

 

[custard]

of course you can,many perople do this every day to get another car
as to any charges,well thats down to your finance agreement
be very careful about stacking up finance
IMO,5 years is too long a repayment period for a car

 

[ChrisUK]

For me it would all depend on how much their going to give you part-ex on yours. Judging from the fact its a 5yr deal I'm guessing you didn't put down a deposit or a sizeable one at that.

This means (due to the fact Fiats depreciate really quickly) you will be in negative equity which will be carried onto your next agreement which will put up those monthly payments and greatly reduce the chance of getting accepted especially when your talking the amount of cash you'd need for a new Bravo 1.9.

Personally I'd wait another year or two as most 5yr deals have a get out clause after 3years (If your not sure from the paperwork give them a call!) where you can hand the car back penalty free and close the agreement then start a fresh one on a new car. Preferably save up a deposit so you can go for a 2-3yr deal. Even on a 2-5% deal this will literally save you £1,000's in interest!.

 

[Percyhahn]

ok thanks,i did pay a £2000 deposit.
i dont want to really be paying to much more, and wouldn't be able to afford to pay a sizable deposit for a 3 year deal. i only originally took out 5 year deal, because couldn't afford to pay to much more a month. i think il wait for the 3rd year then, and have another loook then, and get saving . i love my car as it is, just feel i need a bit bigger engine to take the miles im throwing at it.
cheers

 

[Scrogg]

Personally I'd wait another year or two as most 5yr deals have a get out clause after 3years (If your not sure from the paperwork give them a call!) where you can hand the car back penalty free and close the agreement then start a fresh one on a new car...

It's called Termination, and can be done when 50% of the total amount payable (including all deposits and the value of any part-exchange) has been paid.

Due to the deposit and/or part-exchange the 50% point is usually reached a few months before half way through the term.

 

[Percyhahn]

ok then, thanks . you mentioning part exchange taking it up to 50% been paid, but if i was to trade mine in now, which is an 09 plate, surely that would take it well over the halfway mark been paid?
for example, iv seen one http://sis.virtual-showroom.co.uk/(...acreGroupCustom&mode=search&stockID=6456|-306 nice looking car, and if its not a straight swap, they would be giving me cash back as mine is an 09 plate. its only done 600 miles more than my car to.

 

[Scrogg]

...you mentioning part exchange taking it up to 50% been paid...

No, not the value of your current car against a new one, the value of your previous car (if you had one?) when you part-exchanged it for the one you have now.

Let's say the car you now own was on sale at £10,000. You put £1,000 deposit down and part-exchanged a car worth £2,000, leaving a balance to finance of £7,000. Let's also say that the interest on your loan was also £1,000. Add all these together and the total amount payable is is £11,000, so 50% is £5,500. You paid £3,000 up front (£1k deposit + £2k p/x) so in order to terminate your agreement you need to give them £2,500 less all the payments you have already made.

You can't part-exchange your current car and terminate your agreement, as the car is owned by the finance company so is not yours to part-exchange.

You either terminate, or part-exchange/sell your current car and settle the full balance outstanding.

Does that make more sense?

 

[Percyhahn]

right yes, sorry, it all makes sense now .
best thing for me to do then is wait, and carry on as i am, and save for a while and in a year or to, go back to stoneacre and see what deals they have going.
one last question i do have, as my finance deal was from stoneacre, if i in a year or two i do go to get a newer car, will it have to be from stonecare again, or could i still go to another dealer?

 

[Scrogg]

one last question i do have, as my finance deal was from stoneacre, if i in a year or two i do go to get a newer car, will it have to be from stonecare again, or could i still go to another dealer?

You can buy any car from any dealership, you are not tied to Stoneacre in any way.

 

[Percyhahn]

thats great
thanks for all your help

 

[sludgeguts]

Wouldn't it be easier to go on the stoneacre website, click the finance link and send them an email - they will be able to tell you exactly what you can and can't do - and how much it'll cost you.

 

[Percyhahn]

i was going to go in and talk to them ask them this weekend, but i didn't want to go in looking like i dont have a clue, because id look stupid, and also if they could do something about an upgrade, theyd probably take me for a bit of a ride offering me silly terms. i just wanted to see people opinions and/or experiences with this first, so i have a rough idea.

 

[s130]

I you can't find and economic deal/getout then stick with your Punto 1.3 MJet.

You have already said you love the car but are a little concerned at the mileage you are doing it. I wouln't worry one little bit. That 1.3 MJet is a very very good little engine. No cam belt either as the camshaft is chain driven.

Personally I would run the full term and enjoy what you have got.

 

[sledge]

You need to get in touch with the finance company and ask them for the present redemption cost. Then compare this to the cars present P/X value. The difference between the two is your equity, either positive or negative.

Worked out as an approximate........£211 per month over five years (60 payments) is £12660. If you have made say....18 payments you will still owe £8862 on the car Now compare this figure to the value of your car quoted here... http://www.parkers.co.uk/cars/used-prices/

If your car has a P/X value of more than 8862, say 9862 the finance co might allow you to P/X it and clear off the outstanding balance leaving you with 1000 as a deposit to use on something else. If its worth say 7862 they might allow the 1000 shortfall to be added to the cost of the car you intend buying.

These are rough figures and there will also probably be charges for early redemption and arrangements.

The toal cost of your present car will be around 14660 and you have already sunk £5798 into your car. You may well loose all this, more if its worth less than what you owe on it..........My advice is to carry on with the deal for at least another 2 years and do the sums again when there will be more equity in the car.........unless you are prepared to take a £6k hit.

 

[Percyhahn]

I you can't find and economic deal/getout then stick with your Punto 1.3 MJet.

You have already said you love the car but are a little concerned at the mileage you are doing it. I wouln't worry one little bit. That 1.3 MJet is a very very good little engine. No cam belt either as the camshaft is chain driven.

Personally I would run the full term and enjoy what you have got.

its a fantastic engine, i just thought being a small engine it might not be as tough. i dint know it was chain driven actually, thats one less worry/cost then. thanks for the info

You need to get in touch with the finance company and ask them for the present redemption cost. Then compare this to the cars present P/X value. The difference between the two is your equity, either positive or negative.

Worked out as an approximate........£211 per month over five years (60 payments) is £12660. If you have made say....18 payments you will still owe £8862 on the car Now compare this figure to the value of your car quoted here... http://www.parkers.co.uk/cars/used-prices/

If your car has a P/X value of more than 8862, say 9862 the finance co might allow you to P/X it and clear off the outstanding balance leaving you with 1000 as a deposit to use on something else. If its worth say 7862 they might allow the 1000 shortfall to be added to the cost of the car you intend buying.

These are rough figures and there will also probably be charges for early redemption and arrangements.

The toal cost of your present car will be around 14660 and you have already sunk £5798 into your car. You may well loose all this, more if its worth less than what you owe on it..........My advice is to carry on with the deal for at least another 2 years and do the sums again when there will be more equity in the car.........unless you are prepared to take a £6k hit.

you have pretty much got all the figures correct of total costs what i owe and paid and that, but u said i owe still £8862, but i paid a 2k deposit, so itl be £6862 .
doing rough calculations, and looking at yours compared to what parkers say my cars worth now, i think i will wait then, and just enjoy my gp for a while longer , iv had her one year and 2 weeks, and iv juts hit 27000 miles . shel be fine though i think and i cant afford a 6k hit!! lol.
cheers everyone

 

[s130]

And don't forget you have a 3 year Fiat warranty, unlimited mileage for first two years and I think 60K miles for the 3rd year.

 

[sledge]

you have pretty much got all the figures correct of total costs what i owe and paid and that, but u said i owe still £8862, but i paid a 2k deposit, so itl be £6862 .

No! its not. Let me explain.....you said you are paying £211 per month for 5 years, that adds up to and means you must have financed £12660.....and......you said you put down a deposit of £2K. So add that to the amount financed and it gives us a a bottom line total price of approx £14660 for your car on the 5 year deal you agreed to.

You say you have made approx 18 payments of £211, total £3798. Take this amount from the £12660 you have borrowed, it leaves us with......£8862 This is the outstanding amount left on the deal and what you still owe before the car becomes your property.

Your £2k deposit has gone, its been swallowed up by depreciation.

 

[sledge]

Hang on.....now its 12 months Thats 12x £211 or £2532 paid off the £12660 financed. You still owe just over £10k on the car.

What does Parkers say its approx value is?

 

[Percyhahn]

sorry yeah im with you now, i got confused over that 2k deposit.
part exchange value is £7470 or a private sale would get me in between 6 to 8k depending on condition, mines in excellent condition, but has almost 30k miles already so im guessing id get 7500 for it private. and a dealer would sell it now for 9k. so your right, at the moment its worth less than what i owe for it.