Car Finance help
Discussion
Right, I'm a lurker and haven't posted for a while but I thought the mega brain of the internet might be able to explain some stuff to me in a non-biased manner.
My wife bought a car on Finance 3 years ago and we popped into Vauxhall to see what our options were today. Turns out she bought it pretty simply over 5 yrs and at the end of that time she owns it. When I asked if we could trade it in for a new one at the three year point they said yes but as we had C.£7000 left to pay and the car is worth C.£5000 they would have to include the extra £2000 into the new monthly payments. Therefore making then significantly larger than we wanted.
'Oh well' I thought, we will keep it for 5yrs and that is it, no real drama, nothing wrong with it anyway.
Then the salesman said we could do the other option! Because we have paid over 50% of the car's value we are entitled to ring the finance company and 'voluntarily terminate' our finance contract they would then take the car in lieu of the remaining payments and we all go our separate ways. He told us this doesn't affect our statutory rights or credit rating.
This makes no sense to my relatively small brain. A £14,500 car now has £7000 left to pay but as we all know with depreciation the car is only worth £5000 (max). He seems to think I can give the finance company the car and walk away.
Surely it isn't this simple? What am I missing?
Any help would be much appreciated
Thanks Theo
My wife bought a car on Finance 3 years ago and we popped into Vauxhall to see what our options were today. Turns out she bought it pretty simply over 5 yrs and at the end of that time she owns it. When I asked if we could trade it in for a new one at the three year point they said yes but as we had C.£7000 left to pay and the car is worth C.£5000 they would have to include the extra £2000 into the new monthly payments. Therefore making then significantly larger than we wanted.
'Oh well' I thought, we will keep it for 5yrs and that is it, no real drama, nothing wrong with it anyway.
Then the salesman said we could do the other option! Because we have paid over 50% of the car's value we are entitled to ring the finance company and 'voluntarily terminate' our finance contract they would then take the car in lieu of the remaining payments and we all go our separate ways. He told us this doesn't affect our statutory rights or credit rating.
This makes no sense to my relatively small brain. A £14,500 car now has £7000 left to pay but as we all know with depreciation the car is only worth £5000 (max). He seems to think I can give the finance company the car and walk away.
Surely it isn't this simple? What am I missing?
Any help would be much appreciated
Thanks Theo
Only got back from the dealership just now so I am hoping to catch the finance company tomorrow.
Who catches up the difference? She has given the finance company approx £7000 on a car that the finance company gave Vauxhall approx £14000 a few years ago and now we can say 'thanks very much finance company, instead of the other £7000 have a car worth £5000 instead?'
Is that really possible without really cocking yourself about?
Who catches up the difference? She has given the finance company approx £7000 on a car that the finance company gave Vauxhall approx £14000 a few years ago and now we can say 'thanks very much finance company, instead of the other £7000 have a car worth £5000 instead?'
Is that really possible without really cocking yourself about?
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