Finance/return of car/cancelling of finance.

[E-bmw]

Hi peeps,

I am asking for A.N.Other so some of this may not be completely accurate as it is mostly 3rd hand info, and am after some general advice for those better up on finance than me as I have never used it personally.

Son's partner has a car she bought on finance a year ago for around £5k, which is now in real terms worth around £2k and has unfortunately (partly her fault she admits) started suffering turbo issues (Seat Ibiza FR D 07) and they are expecting twins with a toddler already so the car is no use to them.

They are replacing it with a cheapie MPV with the all important 3 x Isofix seats, so that is covered, my questions are around is there anything they can do with the FR to help out.

1. They have been told by F.Co that if they pay the balance to 50% of total the F.Co will send a company to assess the car to see if there would be additional money to pay, does this sound right/good/fair/legal etc?

2. Their finances are about to change significantly for the worse due to the above, is there any other option open to them? Otherwise they are going to have to insure/tax/pay for a second car they can't really afford.

[LosingGrip]

How long is left on the finance agreement?

How much will it cost to get it fixed?

[red_slr]

Generally speaking (some caveats) you can return a car on finance once you have paid off over 50%. At 1 year in you will probably be a long way off. Most finance agreements will take almost all of the term to get to the 50%. E.g on most 36 month agreements you are normally not getting close to 50% until 24 to 30 months in. Sometimes you never get there. Of course depends what deposit you have put in.

The finance company do inspect cars and if there is excess mileage, damage etc they will charge you for that. They will usually issue a guide to you showing the things they look for.

Stick the reg into we buy any car and see what they value it at.

WBAC will pay off finance on your behalf so if its worth anywhere near the balance of the finance you can just hand they keys over and that's it.

[E-bmw]

WBAC guideline price is a good call, will check it out.

WRT cost to repair, we are looking into that separately.

Thanks for confirming what I have been told is basically the correct stance, so that helps, I will pass it all on, thanks all.

[Mattt]

red_slr said:

Generally speaking (some caveats) you can return a car on finance once you have paid off over 50%. At 1 year in you will probably be a long way off. Most finance agreements will take almost all of the term to get to the 50%. E.g on most 36 month agreements you are normally not getting close to 50% until 24 to 30 months in. Sometimes you never get there. Of course depends what deposit you have put in.

The finance company do inspect cars and if there is excess mileage, damage etc they will charge you for that. They will usually issue a guide to you showing the things they look for.

Stick the reg into we buy any car and see what they value it at.

WBAC will pay off finance on your behalf so if its worth anywhere near the balance of the finance you can just hand they keys over and that's it.

You are assuming it’s a PCP, based on a £5k purchase price I would hazard a guess it’s straight HP which has a more linear nature.

[xjay1337]

Look in your finance agreement to see what the deal is.

Or ask the finance company...!

[E-bmw]

xjay1337 said:

Look in your finance agreement to see what the deal is.

Or ask the finance company...!

As I said in my original post I can't as it isn't mine, do try & keep up.