Any ideas for getting out of a finance deal?

[pembo]

We all know the pitfalls of getting a car on finance but I assure you I was nothing to do with this 'deal'.

I'm currently looking to start renting a flat with the OH and on figuring out what we could afford between us the topic fell on her car repayments....

Well it happens she did the typical blonde hairdresser thing and walked into a certain (not so) small car dealer only to be swiftly bent over and abused! (It seems to be alright down there now though so we have no worries about that)
I mean no offence at all to any blondes and or hairdressers

Anyway, long story short, she is looking at another 24 months on the finance deal they gave her at about £230 a month followed by the final baloon payment of over £5k!! For 2006 Cooper! She won't have that money at the end so basically it is an expensive rental deal.

We've decided that if at all possible it would be best to get out of it as soon as she can and pick her up a little run about (or a bicycle ) for less than a years payments which will be more than enough for the 4 miles she goes to work every day.

So, I was wondering if anyone out there in PH land has any idea how we might go about this or has any experience. At a guess I'd say she would have to speak to the dealer about them buying it back and then paying off a settlement ballance because a private sale would probably cause problems with HPI.

Thanks

[Chrisw666]

Easiest way would be Voluntary termination.

If she has paid 50% of the total amount owed (not 50% of the payments) then she can legally walk away from the car with no penalties or black marks on her credit history.

[denniswise9]

Had to put this in as mentioned earlier:

http://forums.overclockers.co.uk/showthread.php?t=...

As forgetting out of it you could always try and find a buyer willing to buy the car and pay the finance company off there and then on the phone?

Thats what I did even if it is a bit of a needle in a haystack buyer search - the finance company confirmed the car could legally be his once it was settled on the phone to the buyer.

[E30M3SE]

The above.

[GM182]

denniswise9 said:

Had to put this in as mentioned earlier:

http://forums.overclockers.co.uk/showthread.php?t=...

As forgetting out of it you could always try and find a buyer willing to buy the car and pay the finance company off there and then on the phone?

Thats what I did even if it is a bit of a needle in a haystack buyer search - the finance company confirmed the car could legally be his once it was settled on the phone to the buyer.

Tried this and Santander wouldn't do it - only I as the named party could settle it. Had no problem with ING on a previous deal so worth checking with the finance company first.

[andy665]

Voluntary Termination or settlement but looking at your figures it highly unlikely you'll be anywhere close to the VT point

[homerjay]

get a settlement figure from the finance company.
get a trade figure from a couple garages. maybe best to go to mini direct, if its a clean example.

then pay off the difference, if she can afford it.

[pembo]

I'll look into when VT might come into effect then. How is the the 50% calculated then just for clarity? is it = (value of loan + total cost of interest)/2
I'm sure that would be right but would rather make sure, the baloon payment doesn't come into it?

I think I'd ratehr avoid the complications of involving another party with a private sale although it would probably be the most financially beneficial I can Imagine the hassle would be pretty high!

If VT isn't going to be an option any time soon I might get her to start with MINI as it is a very clean example with very little useage and we'll work out getting the difference paid.

cheers guys

[Chrisw666]

pembo said:

I'll look into when VT might come into effect then. How is the the 50% calculated then just for clarity? is it = (value of loan + total cost of interest)/2
I'm sure that would be right but would rather make sure, the baloon payment doesn't come into it?

Easiest way is to look at the paperwork she signed, total amount payable will be on there and the 50% figure may well be too.

AFAIK the figure you need to use if you don't have the paperwork to hand is:

(Deposit + Total of all payments + Balloon)/2 = 50%

[homerjay]

Chrisw666 said:

Easiest way is to look at the paperwork she signed, total amount payable will be on there and the 50% figure may well be too.

AFAIK the figure you need to use if you don't have the paperwork to hand is:

(Deposit + Total of all payments + Balloon)/2 = 50%

i agree with this.

iirc usually you'll find you'll only get to the 50% at about 30 months on 36 month pcp

with 24 months left, she's no chance.

[pembo]

riiiiight, sounds like it might be a bit of a nasty one then, buggar!

If you're not up to the 50% hand it back point would there be a possibility of getting a buy-out fee? Saying this I guess that they would probably ask for the remaining payments required to get her up to the VT level so she might as well just keep it until then.