Car Finance help

[Jefferson Steelflex]

MrAverage said:

I very recently (last week) got rid of our 14 plate juke. We had around £1500 of negative equity as seems to be the norm.
We assessed all of our options, they were:

1. Hand the car back to Nissan finance,paying any additional milage and damage to the car. Total cost to us c.£2000 due to lots of excess mileage and damage (OH likes hitting things)

2. Carry on finance for 2 years and buy the car

3. Sell car privately and settle finance, we sold our car to we want any car. All in all the service was straight forward and we got a satisfactory price. Total cost to us c. £950

I would definitely asses your options as one should be a stand out favourite. For us due to the mileage being double our agreed amount and the car sporting damage to 2 wheels, bumper and various parking dings it wasn't a sensible option to hand the car back as charges were quite harsh.
We toyed with keeping it but it would have cleaned both accounts and left us with a pittance.
So the final option (3) was to sell the car, i doubt it would sell privately although i may be niave so we decided car buying services would be the best bet. There initial offer was very good £8300 Vs the £8400 finance owed but upon assessment the final offer was £7550 which we sold for leaving us just under £1000 out of pocket.

Hope this helps

I'm afraid you've been misinformed. There are no legally enforceable mileage charges when VT'ing a car back to the finance company. Most of them will tell you there is a charge, but they cannot claim it.

[Magic919]

VT and excess mileage charges are not mutually exclusive according to the Ombudsman http://www.ombudsman-decisions.org.uk/viewPDF.aspx...

[anonymous-user]

romeogolf said:

datum77 said:

As has already been suggested. Getting involved in ANY manufacturer backed finance will ALWAYS be the least sensible option. Any 0% finance offer is based on the punter paying the FULL retail price for a vehicle.

Absolute rubbish. You can negotiate any discount you like and then apply for their finance. They are legally not allowed to alter the sales price depending on whether or not you are using their finance.

This is precisely why you see a "deposit contribution" rather than a "discount" (as well as reasons concerning the used market).

It's OK, it's only Datum.

Quick, someone start a thread about the high build quality of German cars and why it's a good idea to buy from a main dealer for the warranty backup and aftersales care you'll get. He'll be happy for hours on that one.

[Monkeylegend]

ging84 said:

Voluntary termination is almost never a financially beneficial option
If the origonal salesman mugged you and you massively over paid, or the model's residual values took an unexpected dive then it might be worth doing but otherwise it will not make sense.

It's also possible that if the interest rate is quite high the current settlement figure is much lower than the full amount of outsanding finance and the salesman did not get a current settlement figure.

On a simple HP agreement which it sounds like this is there are outstanding payments which you don't have to pay if you voluntarily terminate. You have a legal right to VT after making 50% of the monies owed including interest, but other than that you just hand the car back and get on with life.

The two things to be aware of is the small print in the agreement to ensure you can VT, and the possibility that there might be a charge if the car has more than acceptable wear and tear conducive to the mileage covered.

In the OP's case if they are in negative equity territory it makes a lot of sense to VT.

[MrAverage]

Jefferson Steelflex said:

I'm afraid you've been misinformed. There are no legally enforceable mileage charges when VT'ing a car back to the finance company. Most of them will tell you there is a charge, but they cannot claim it.

Ours was end of PCP not VT don't know if that makes any difference.

[750turbo]

charltjr said:

romeogolf said:

datum77 said:

As has already been suggested. Getting involved in ANY manufacturer backed finance will ALWAYS be the least sensible option. Any 0% finance offer is based on the punter paying the FULL retail price for a vehicle.

Absolute rubbish. You can negotiate any discount you like and then apply for their finance. They are legally not allowed to alter the sales price depending on whether or not you are using their finance.

This is precisely why you see a "deposit contribution" rather than a "discount" (as well as reasons concerning the used market).

It's OK, it's only Datum.

Quick, someone start a thread about the high build quality of German cars and why it's a good idea to buy from a main dealer for the warranty backup and aftersales care you'll get. He'll be happy for hours on that one.

I really do not know what parallel universe Datum he lives in. That is a serious chip on his shoulder.