Citroen C1 neg egg
Discussion
Hi All,
My girlfriend has announced over the weekend that she wants a new car. She currently has a 65-plate Citroen C1 with 27k on the clock. Its not suitable at all for what it's used for, and I'm at a loss as to why she went and bought it.
She has decided on a Volvo C30, we've found a nice 60-plate, 2.0 petrol model in R-Design trim with 70k on the clock for £5995. It's a straight car at a decent sized local independent dealer.
She bought the car before we met, so I had a look at her finance paperwork on the Citroen last night and they've absolutely seen her coming, in my mind, when this finance was arranged`:
The car was a year old at purchase, and shes 24 months in. Cash price (also the full screen price - she did not negotiate any discount) of £7,960, GAP insurance of £350, less a deposit of £550. 48 monthlies at £130.39 and a baloon of £3050 after 48 months. She has already exceeded the mileage for the full term.
She's requested a settlement figure and they've come back to her today with £5833. WBAC have come back at £4570 just for an idea of the value as a trade in.
What would the experienced car buyers of pistonheads suggest the best way of handling this is?
Would have to finance a new car, but in my mind she needs to be out of the C1. Is it likely that she would be able to roll the finance deficit into the new car? I'm personally aware that this puts her straight into neg egg with the Volvo but it seems to absolve the balloon payment problem, as she'd be going to straight up monthly HP. She tells me her credit file is good.
Suggestions/advice greatly appreciated. I've not done a massive amount of finance other than straight forward monthly HP with no balloon and a hefty deposit. She hasn't much deposit to put down but is stuck with a balloon at present.
My girlfriend has announced over the weekend that she wants a new car. She currently has a 65-plate Citroen C1 with 27k on the clock. Its not suitable at all for what it's used for, and I'm at a loss as to why she went and bought it.
She has decided on a Volvo C30, we've found a nice 60-plate, 2.0 petrol model in R-Design trim with 70k on the clock for £5995. It's a straight car at a decent sized local independent dealer.
She bought the car before we met, so I had a look at her finance paperwork on the Citroen last night and they've absolutely seen her coming, in my mind, when this finance was arranged`:
The car was a year old at purchase, and shes 24 months in. Cash price (also the full screen price - she did not negotiate any discount) of £7,960, GAP insurance of £350, less a deposit of £550. 48 monthlies at £130.39 and a baloon of £3050 after 48 months. She has already exceeded the mileage for the full term.
She's requested a settlement figure and they've come back to her today with £5833. WBAC have come back at £4570 just for an idea of the value as a trade in.
What would the experienced car buyers of pistonheads suggest the best way of handling this is?
Would have to finance a new car, but in my mind she needs to be out of the C1. Is it likely that she would be able to roll the finance deficit into the new car? I'm personally aware that this puts her straight into neg egg with the Volvo but it seems to absolve the balloon payment problem, as she'd be going to straight up monthly HP. She tells me her credit file is good.
Suggestions/advice greatly appreciated. I've not done a massive amount of finance other than straight forward monthly HP with no balloon and a hefty deposit. She hasn't much deposit to put down but is stuck with a balloon at present.
Ron99 said:
cmvtec said:
......The sooner the nasty little Citroen is out of her life, the better.....
Out of interest, why isn't the C1 suitable and why are you so keen to see the back of it?If it wasn't on a stupid finance deal it'd probably be a lot more acceptable, but I hatsen to add that isn't a slight on the car.
For all her mileage isn't enormous, most of it is on NSL dual carriageway roads. We also use my car to go everywhere, because the Citroen is too slow, unrefined, uncomfortable and noisy. It's not really that economical, either. It's small, which is useful for parking, though. The first version, for me, was a better car.
She bought an unsuitable car two years ago on a bad finance deal, and she's lived with a compromise until now.
We've also had a discussion about why it was an irresponsible purchase, and that "my dad always used to do the stuff woth cars" isnt really a good enough reason to get the best part of £10k into a Citroen C1.
cmvtec said:
Ron99 said:
cmvtec said:
......The sooner the nasty little Citroen is out of her life, the better.....
Out of interest, why isn't the C1 suitable and why are you so keen to see the back of it?If it wasn't on a stupid finance deal it'd probably be a lot more acceptable, but I hatsen to add that isn't a slight on the car.
For all her mileage isn't enormous, most of it is on NSL dual carriageway roads. We also use my car to go everywhere, because the Citroen is too slow, unrefined, uncomfortable and noisy. It's not really that economical, either. It's small, which is useful for parking, though. The first version, for me, was a better car.
She bought an unsuitable car two years ago on a bad finance deal, and she's lived with a compromise until now.
We've also had a discussion about why it was an irresponsible purchase, and that "my dad always used to do the stuff woth cars" isnt really a good enough reason to get the best part of £10k into a Citroen C1.
Sir Bagalot said:
cmvtec said:
If it wasn't on a stupid finance deal it'd probably be a lot more acceptable
So you want to buy a 8 year old Volvo on finance instead........Check how much that 8 year old Volvo is worth to WBAC
king ridiculous finance deal"! How long is she likely to keep the Volvo is the first question I'd ask?
Assuming you need a loan of £7k (£6k for the Volvo + £1k neg), if you were able to get one for 3.5% APR it would work out around £205 per month over 3 years. Could you afford that? You'd pay back around £7380 then be out of the finance loop, hopefully with some equity left in the Volvo.
However in 3 years time that Volvo will be a £1500 shed, so I'd be tempted to cut that 3 years out and just get her a shed now to clear your feet of the debt.
Assuming you need a loan of £7k (£6k for the Volvo + £1k neg), if you were able to get one for 3.5% APR it would work out around £205 per month over 3 years. Could you afford that? You'd pay back around £7380 then be out of the finance loop, hopefully with some equity left in the Volvo.
However in 3 years time that Volvo will be a £1500 shed, so I'd be tempted to cut that 3 years out and just get her a shed now to clear your feet of the debt.
Try Evans Halshaw. They typically give a higher valuation than WBAC and I understand they're less likely to knock you down for small dents/kerbed alloys etc.
There's a strong chance that its market value will be below the balloon payment at 48 months due to the mileage, so you're going to need to pay something either way - either now to cover the negative equity or at the end of the term, either to pay the mileage excess or cover the difference between what the car is worth and the balloon.
To say the car is not fit for purpose sounds like justifying a want of a new car. Nothing wrong with that per se, but one bad financial decision has already been made. In reality, the car is completely capable - it has fulfilled its purpose for 24 months so far. The best suggestion is to work out the cost for each scenario and go with whatever costs you less overall. If that means sticking with it, so be it.
There's a strong chance that its market value will be below the balloon payment at 48 months due to the mileage, so you're going to need to pay something either way - either now to cover the negative equity or at the end of the term, either to pay the mileage excess or cover the difference between what the car is worth and the balloon.
To say the car is not fit for purpose sounds like justifying a want of a new car. Nothing wrong with that per se, but one bad financial decision has already been made. In reality, the car is completely capable - it has fulfilled its purpose for 24 months so far. The best suggestion is to work out the cost for each scenario and go with whatever costs you less overall. If that means sticking with it, so be it.
Thanks guys.
I think she has suffered with buyers remorse from soon after buying the C1. Having driven it, I can see why she's wanting out of it to be honest. It's getting on for painful over any sort of distance. I believe this spurred on the want for a new car- it's definitely a mixture of the two. I would never buy a city car for what she uses it for. That's me, though.
I believe the Volvo would be a long term car, should she take that route. The need to get out of the C1 was compacted by looking at the finance paperwork and actually seeing the terms she's taken it over.
The real key is to get out of the PCP look whilst changing the car. I've also explained it'll cost her money to do it, that's not the huge concern. She has a good salary but has made a bad decision in buying the C1 when it was never really appropriate to begin with.
I think she has suffered with buyers remorse from soon after buying the C1. Having driven it, I can see why she's wanting out of it to be honest. It's getting on for painful over any sort of distance. I believe this spurred on the want for a new car- it's definitely a mixture of the two. I would never buy a city car for what she uses it for. That's me, though.
I believe the Volvo would be a long term car, should she take that route. The need to get out of the C1 was compacted by looking at the finance paperwork and actually seeing the terms she's taken it over.
The real key is to get out of the PCP look whilst changing the car. I've also explained it'll cost her money to do it, that's not the huge concern. She has a good salary but has made a bad decision in buying the C1 when it was never really appropriate to begin with.
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