VW HP Finance early termination options

[ts27]

Hi everyone need some help, I started a HP 60 month (5yrs) finance back in July 2018 for a 2015 VW Polo. Although it hasnt even been a year yet, I feel I have already out grown the car and I am looking to upgrade in some form. Im not yet close to reaching paying off 50% of the settlement but i am desperate not to have this car for longer than a year in total. The car is in perfect condition by the way. I have tried looking into VW trading/selling the car to Audi for an audi financed car as Audi and VW are under the same group, if anyone could shed some more light into how/if this can work, or any other possible solutions, i would be grateful !

[Hashtaggggg]

I suspect you will be very out of pocket what ever you do.

[Butter Face]

Hashtaggggg said:

I suspect you will be very out of pocket what ever you do.

Yes this.

You can ask VWFS how much it would be to hand the car back (lots) or trade it in and pay off the negative equity (also likely lots, but maybe less)

[ts27]

Hashtaggggg said:

I suspect you will be very out of pocket what ever you do.

explain

[Butter Face]

ts27 said:

Hashtaggggg said:

I suspect you will be very out of pocket what ever you do.

explain

You will likely owe more on the car than it’s worrh.

[eybic]

ts27 said:

explain

The car will be worth less than you owe so for example, they give you £10k but you owe £13k, you will still need to come up with £3k to clear the finance, it's called Negative equity.

[rfoster]

Jumping to conclusions here chaps - we have no idea if TS27 put any deposit / part exchange into the deal.

TS27 - call VWFS and ask them for a current settlement figure on the agreement. It'll be regulated (assuming it was in your name and not through a business) so all finance companies have to adhere to an exact formula when calculating your settlement figure.

Once armed with this figure you can get an idea of what your car is worth in part exchange / webuyanycar so you can get a better idea of whether you need to put any money into the deal to clear the finance off; or if you have any equity in the car.

There are finance companies that can help roll some / all of any potential negative equity into a new finance agreement should you need / want to.

[eybic]

rfoster said:

Jumping to conclusions here chaps - we have no idea if TS27 put any deposit / part exchange into the deal.

TS27 - call VWFS and ask them for a current settlement figure on the agreement. It'll be regulated (assuming it was in your name and not through a business) so all finance companies have to adhere to an exact formula when calculating your settlement figure.

Once armed with this figure you can get an idea of what your car is worth in part exchange / webuyanycar so you can get a better idea of whether you need to put any money into the deal to clear the finance off; or if you have any equity in the car.

There are finance companies that can help roll some / all of any potential negative equity into a new finance agreement should you need / want to.

6 Months into a 60 month deal, I'd hazard that even if a big deposit was paid, there would still be neg eq.

[Sheepshanks]

ts27 said:

I have tried looking into VW trading/selling the car to Audi for an audi financed car as Audi and VW are under the same group, if anyone could shed some more light into how/if this can work, or any other possible solutions, i would be grateful !

This used to be routine - you just p/x the car and the dealer will settle the finance. Any negative equity can be rolled into the new deal.

I think this is trickier these days. But you might have a few £K to throw at it so maybe no issue.

[hunton69]

Your first mistake was entering a 5th year finance deal on a cheap car.
Did you not look at the amount of interest you have to pay. A small extra amount per month would probably reduced the term to 4 but preferably try and only enter 3 year deals it gives you flexibility later