Part exchanging a car with negative equity
Discussion
Hi
Need a bit if help / words of advice. My wife is partway through BMW select finance for 118d MSport. We were expecting this would suit us well with no probs! However we have an 8 month old and now unexpectedly expecting a second so a small hatchback will not be much use. Think double buggy etc. I have a 3series salon which I do 100miles a day on so not suitable either for a family car.
We need to upgrade and are thinking of a grand c-max. However although she is halfway months wise through her agreement, she is going to be owing £4k settlement to hand the sat back.
With drive the deal we are able to get £6k off a grand c-max making it only cost £17500 instead of £23500. Car file and broad speed do similar discounts. Do you think we would have a chance of manoeuvre here with a dealer to take our car settle the outstanding owed and then purchase a new grand c-max?
Or would people advise to struggle on with a tiny boot and no space until we are in a better position wrt finance?
Cheers
Steve
Need a bit if help / words of advice. My wife is partway through BMW select finance for 118d MSport. We were expecting this would suit us well with no probs! However we have an 8 month old and now unexpectedly expecting a second so a small hatchback will not be much use. Think double buggy etc. I have a 3series salon which I do 100miles a day on so not suitable either for a family car.
We need to upgrade and are thinking of a grand c-max. However although she is halfway months wise through her agreement, she is going to be owing £4k settlement to hand the sat back.
With drive the deal we are able to get £6k off a grand c-max making it only cost £17500 instead of £23500. Car file and broad speed do similar discounts. Do you think we would have a chance of manoeuvre here with a dealer to take our car settle the outstanding owed and then purchase a new grand c-max?
Or would people advise to struggle on with a tiny boot and no space until we are in a better position wrt finance?
Cheers
Steve
You say that you are on "finance" thus I am assuming that it is not a personal contract plan?
Therefore the first thing to do is to check your finance agreement. In the small print there is likely to be a clause that says after you are half way through the agreement you can hand the car back and owe nothing more. That is your get out of jail free card.
If nothing is possible, swap cars with your wife, the 3-Series is plenty big enough.
Therefore the first thing to do is to check your finance agreement. In the small print there is likely to be a clause that says after you are half way through the agreement you can hand the car back and owe nothing more. That is your get out of jail free card.
If nothing is possible, swap cars with your wife, the 3-Series is plenty big enough.
I've handed back a car before on finance, I'd just gone over the rental period where it said I could walk away. I apparently wont be on their Christmas card list, but other than that no real problems with credit etc
I think the Grand C Max comment was more about a new one, they'll depreciate quickly and I guess that's been a consideration for you already with discounting. I've been in one and owned an earlier one, liked them both
I think the Grand C Max comment was more about a new one, they'll depreciate quickly and I guess that's been a consideration for you already with discounting. I've been in one and owned an earlier one, liked them both
Firstly - congratulations!!!
I reckon both your cars will be fine - there are some double buggies out there that fold up relatively small so just try a few out (I think net mums or mums net will have about 2000 threads on which double buggy folds up the smallest... I know my wife was looking into this more because we have a tiny house).
From what I am told - by the time people have their second most (not all) have learned what gubbins you _really_ need to take out and about with you and you end up taking less stuff than you did with the first.
Its a good car (better than a cmax in my view) and it sounds like you're just at the wrong time to chop it in financially?
Another option is to put on roof rails and a box on the 118?
I reckon both your cars will be fine - there are some double buggies out there that fold up relatively small so just try a few out (I think net mums or mums net will have about 2000 threads on which double buggy folds up the smallest... I know my wife was looking into this more because we have a tiny house).
From what I am told - by the time people have their second most (not all) have learned what gubbins you _really_ need to take out and about with you and you end up taking less stuff than you did with the first.
Its a good car (better than a cmax in my view) and it sounds like you're just at the wrong time to chop it in financially?
Another option is to put on roof rails and a box on the 118?
Tansteve said:
Out of interest why would you not go for a grand c-max ? I know it's not a drivers car but the sliding doors are a big plus point for my wife.
Two points firstly for 2 kids you don't need something like that (I have 4 my wife had an A6 Estate) secondly I wouldn't buy a NEW one.You're just about to lose a lot on the 1 series you also have a 3 series so you clearly aren't loaded.
You have one child and are about to have another yet you want to buy a NEW car that will depreciate like a stone losing you more money and saddling yourself with more debt at a time when 2 kids will cost you plenty, I'd be saving rather than spending.
Some dealers will increase the cost of the car they are selling (so, in this case, take the discount back off), in order to make an increased bid for your car. I was offered this once, but rejected it in the end as you start deepening your negative equity problems very quickly.
As an aside friends of mine manage with twins in a Mk.6 Golf.
As an aside friends of mine manage with twins in a Mk.6 Golf.
Really? Are the 1 and 3-series boots *that* small?
We've got a Mazda 6 MPS as our sensible car for two children and that has about the same size boot as the 05-11 3-series saloon (3-series is 460l the normal '6' is 492 but the MPS has a higher boot floor due to the AWD and bracing behind the rear seats which reduces the space).
We can easily fit two push chairs as well as 'stuff' in the boot of the MPS. Indeed the only actual reason we got rid of the RX-8 that we had before was the practicality of the doors (plus a little bit of feeling that a year or so of pootling round driving gently with a baby wasn't the best for a rotary), there was still room in the boot of that for everything for two children and that has a smaller boot than the 1-series (290l against 360l).
We've got a Mazda 6 MPS as our sensible car for two children and that has about the same size boot as the 05-11 3-series saloon (3-series is 460l the normal '6' is 492 but the MPS has a higher boot floor due to the AWD and bracing behind the rear seats which reduces the space).
We can easily fit two push chairs as well as 'stuff' in the boot of the MPS. Indeed the only actual reason we got rid of the RX-8 that we had before was the practicality of the doors (plus a little bit of feeling that a year or so of pootling round driving gently with a baby wasn't the best for a rotary), there was still room in the boot of that for everything for two children and that has a smaller boot than the 1-series (290l against 360l).
From a money perspective, there's always a deal to be had somewhere.
You will be able to chop in the 1.
Whether it works out cheap or expensive is down to negotiating skills on both sides.
Personally, I'd be tempted to go with a bank loan and a second hand car. The Apr is often lower, as is the price of the car.
You will be able to chop in the 1.
Whether it works out cheap or expensive is down to negotiating skills on both sides.
Personally, I'd be tempted to go with a bank loan and a second hand car. The Apr is often lower, as is the price of the car.
mini1380cc said:
My mum had 3 of us in the back of a Nova with no major struggles, so how a 1 series doesn't cut it these days I'll never know.
Times change, baby stuff changes. Laws change.I'm sure it's possible to handle kids in a 1, or a nova.
But it's much easier to do in a larger car.
Your mum may have managed to handle it with no MAJOR, but it seems the OP wants to avoid minor and medium struggles too.
It seems like a sensible decision to me.
Tansteve said:
3 series boot isnt small, just a bit awkward to get into with the slot opening. The 1 series boot is quite small though with little room once buggy is in.
Boot does't look any worse than the MPSBMW 3-series
Mazda 6 MPS
Seriously though, I understand wanting a larger car for interior space or easier doors, more roof height etc but two push chairs or a double aren't *that* big and should easily fit in even a 1-series. As for little room once buggy is in, well you've got the floor space in the back and the middle seat for storage. We've typically got spare clothes for them in the rear footwells and the change bag sits between the child seats. If you're going away just get a roof box for the 3-series. Then you can spend the money you would have spent on a new car on more days out.
Seems a lot of money to make life a bit easier for a few years? What could you do with the money you'd save not getting a new car after 5 years perhaps? It might provide a light at the end of the tunnel when facing the daily struggle of using the 3 series boot (which seems pretty big on E92s I've seen?)
SV8Predator said:
You say that you are on "finance" thus I am assuming that it is not a personal contract plan?
Therefore the first thing to do is to check your finance agreement. In the small print there is likely to be a clause that says after you are half way through the agreement you can hand the car back and owe nothing more. That is your get out of jail free card.
If nothing is possible, swap cars with your wife, the 3-Series is plenty big enough.
Almost correct. Also, it is a PCP. Therefore the first thing to do is to check your finance agreement. In the small print there is likely to be a clause that says after you are half way through the agreement you can hand the car back and owe nothing more. That is your get out of jail free card.
If nothing is possible, swap cars with your wife, the 3-Series is plenty big enough.
Even with a PCP, the VT rights still apply. Secondly, it isn't half way through. Voluntary Termination rights kick in once half of the TOTAL cost of the agreement has been paid. A very simply way of working it out is look at your agreement, find the total cost and then divide by 2. Take off your deposit from your half and the resulting figure divide by your monthly payments. This will give you the approximate number of months neede to pay up to VT.
Obviously it depends on how long the agreement has been running but even if you are a couple of months away, you are able to pay a lump sum to get you to VT stage.
Simply p/exing the car and swallowing the £4k yourself is bad advice-unless you ahve money to burn. Namely because you will either have to stump up cash yourself or borrow more to cover the negative equity. No one will 'lump and bump' these days (ie overvaluing a p/ex and then selling the newer car for a higher figure). Finance companies are all over that trick these days.
I'd wait for 7 months and try and reduce the negative equity (if VT doesn't apply) and change then, if you still feel that you have to.
If you are quite determined to go down the change road, BMW Finance does have a negativy equity loan available for repeat customers.
As another posters has suggested though, swap cars, the 3 is plenty big enough as a family car. Just be careful what annual mileage you have declared on the 1 series.
HTH
Edited by TVR1 on Tuesday 1st October 10:29
You're going to be a two child family.
It's definitely worth looking for a different car to suit your new lifestyle for the next 5-10 years or so.
I'd suggest the first step is to see how easily you can get rid of the 1 without a big loss of cash.
After that, look for a new car.
It's unlikely Ford will help you pay off your BMW loan in any significant way to help with the sale of a new car.
As I mentioned before - take a look at a bank loan for the purchase, you may be surprised at how cheap it can be. Although it depends if you want to keep the car or trade it in after 3 years.
It's definitely worth looking for a different car to suit your new lifestyle for the next 5-10 years or so.
I'd suggest the first step is to see how easily you can get rid of the 1 without a big loss of cash.
After that, look for a new car.
It's unlikely Ford will help you pay off your BMW loan in any significant way to help with the sale of a new car.
As I mentioned before - take a look at a bank loan for the purchase, you may be surprised at how cheap it can be. Although it depends if you want to keep the car or trade it in after 3 years.
Snowboy said:
mini1380cc said:
My mum had 3 of us in the back of a Nova with no major struggles, so how a 1 series doesn't cut it these days I'll never know.
Times change, baby stuff changes. Laws change.I'm sure it's possible to handle kids in a 1, or a nova.
But it's much easier to do in a larger car.
Your mum may have managed to handle it with no MAJOR, but it seems the OP wants to avoid minor and medium struggles too.
It seems like a sensible decision to me.
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