Stuck in HP, not happy and want a different car.
Discussion
When I was deciding on a car to get just to lose my first old banger, I never really had money saved up to buy a different car. I decided that I would get HP finance and ride a Ford Fiesta ST, but got denied because of my income. So in the end after 2 weeks of sadness I went back to my dealer and got a Fiesta Zetec 1.0 EcoBoost 16 plate as I really didn't want my old car anymore. After I had done all this, I then landed a new job which pays me a lot more than my previous one and I could've got a way better car by now. I'm not really happy with the car I've ended up in and would rather something different, how exactly can I go abouts with this?
Also if I could kindly ask that anyone can jot down car ideas?
I like decent looking cars, with a hefty bit of BHP, nice to drive and something that could possibly be a type of project. Always loved Subarus but I've read that maintaining one is too much, which is pretty sad since one is near me selling for 15k can go on finance.
Driving to work most days of the week and going out for drives on the days off. Income is 15k a year.
Thanks guys.
Also if I could kindly ask that anyone can jot down car ideas?
I like decent looking cars, with a hefty bit of BHP, nice to drive and something that could possibly be a type of project. Always loved Subarus but I've read that maintaining one is too much, which is pretty sad since one is near me selling for 15k can go on finance.
Driving to work most days of the week and going out for drives on the days off. Income is 15k a year.
Thanks guys.
Edited by Daunte on Friday 1st February 04:13
By saying HP do you actually mean a PCP deal?
Give us the the proper numbers on what ever deal you have signed, deposit, monthly payment, term length, final payment if any etc.
Sell car. Pay off finance. Buy new car. Easy isn't it?
(standard PH response...if you earn 15k a year then can you really afford to buy, run, maintain tax and insure a 15k car?)
Give us the the proper numbers on what ever deal you have signed, deposit, monthly payment, term length, final payment if any etc.
Sell car. Pay off finance. Buy new car. Easy isn't it?
(standard PH response...if you earn 15k a year then can you really afford to buy, run, maintain tax and insure a 15k car?)
Yeah it's the other part of a PCP deal. Mine is 0 deposit, £221 a month, I think it's £9000 overall streached across 5 years.
But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
Edited by Daunte on Friday 1st February 10:12
Edited by Daunte on Friday 1st February 10:14
Daunte said:
Yeah it's the other part of a PCP deal. Mine is 0 deposit, £221 a month, I think it's £9000 overall streached across 5 years.
But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
What was the actual price of the car and how many months have you paid so far?But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
Edited by Daunte on Friday 1st February 10:12
Edited by Daunte on Friday 1st February 10:14
The bad news is you possibly have negative equity (owe more for car than car is worth). Do you now have money saved, which could pay this off, and still have a deposit for a new car?
I'm not sure if you can do it via a private sale (and I'm still not clear if your car is HP or PCP) but I sold a car I had on PCP to a dealer once. The car I had was in slight negative equity so I wrote a cheque to cover the negative and they then settled the finance. Not ideal but got me out of a car I didn't want.
I'd advise you get the contract you signed out and read the details and possibly call the finance company to get an idea of the settlement figure. You will then know how much this might hurt. It's highly likely you will owe more than the car is worth unless you hammered out a good discount when buying.
I'd advise you get the contract you signed out and read the details and possibly call the finance company to get an idea of the settlement figure. You will then know how much this might hurt. It's highly likely you will owe more than the car is worth unless you hammered out a good discount when buying.
I think you're probably screwed as far as exiting the PCP agreement early. With no deposit you'll definitely be in negative equity and if you've recently signed the deal, you'll be a long way from handing it back having paid 50% of the outstanding.
If you really want to exit the agreement and are prepared to pay the, probably hefty, price... just get a redemption figure from the dealer and cough up the cash to hand it back or sign another agreement for something else, such as the Fiesta ST.
If you really want to exit the agreement and are prepared to pay the, probably hefty, price... just get a redemption figure from the dealer and cough up the cash to hand it back or sign another agreement for something else, such as the Fiesta ST.
My advice, if you can get out of this, is to buy a car with a loan over a max. of 3 years and get something older and more interesting.
You may only need £5k for this so could even pay it over 2 years.
Even if you get a nice new car with a bit of power over 5 years finance, I guaranteed you will be bored and wanting change after 2-3 years.
Also hopefully your salary would have increased in 2-3 years meaning you can afford a more expensive car.
You may only need £5k for this so could even pay it over 2 years.
Even if you get a nice new car with a bit of power over 5 years finance, I guaranteed you will be bored and wanting change after 2-3 years.
Also hopefully your salary would have increased in 2-3 years meaning you can afford a more expensive car.
Daunte said:
Yeah it's the other part of a PCP deal. Mine is 0 deposit, £221 a month, I think it's £9000 overall streached across 5 years.
But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
Ouch, £13k to borrow a Fiesta for 5 years. Who let you sign that? But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
How far into the 5 year agreement are you?
HustleRussell said:
Daunte said:
Yeah it's the other part of a PCP deal. Mine is 0 deposit, £221 a month, I think it's £9000 overall streached across 5 years.
But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
Ouch, £13k to borrow a Fiesta for 5 years. Who let you sign that? But with the HP I don't technically own the car, it's still the company who it the legal owner. So can I really sell it?
How far into the 5 year agreement are you?
However, if you're looking for something more expensive, I can't see how you will get finance approval when you're only on £15k p.a.
You might be able to improve the situation if you've got a chunk of money saved up that you can add to the deal. Otherwise, i'd just stick with what you've got for now.
Find out how much you have left outstanding on your hp agreement,
go to WBAC or Evans Halshaw, put in reg number and get an estimate of cars value,
How long have you had the car.?
Are you in negative equity?, (you probably are as you haven't stated the apr on your agreement and it sounds like you signed up without doing your homework on interest rates etc),
can you afford any money to help to pay off the agreement?
if not can you get a bank loan at hopefully a much better rate, pay of the hp agreement and keep the car while paying off the loan,
at least the car you have should be pretty cheap to run and should be depreciating at a slower rate than your loan payments, then when you're in a better position and can decide what you want to do, you can sell it or part ex it against something else.
or alternatively, take it to one of the above and ask them to pay of your agreement in exchange for the car,
in which case you may have to add some of your own money towards to cover the difference between the cars value and your outstanding balance.
go to WBAC or Evans Halshaw, put in reg number and get an estimate of cars value,
How long have you had the car.?
Are you in negative equity?, (you probably are as you haven't stated the apr on your agreement and it sounds like you signed up without doing your homework on interest rates etc),
can you afford any money to help to pay off the agreement?
if not can you get a bank loan at hopefully a much better rate, pay of the hp agreement and keep the car while paying off the loan,
at least the car you have should be pretty cheap to run and should be depreciating at a slower rate than your loan payments, then when you're in a better position and can decide what you want to do, you can sell it or part ex it against something else.
or alternatively, take it to one of the above and ask them to pay of your agreement in exchange for the car,
in which case you may have to add some of your own money towards to cover the difference between the cars value and your outstanding balance.
Edited by timberman on Friday 1st February 12:43
Edited by timberman on Friday 1st February 12:44
Am I reading this right? Your income is £15k a year and you are planning on buying a £15k car?
Seriously I'm not sure its wise to put your whole annual income (I assume that's Gross income too?) into a car purchase.
Edit- Theres loads of cars for sale around the 5k mark which are good and fast cars if you can afford the insurance and maintenance.
Seriously I'm not sure its wise to put your whole annual income (I assume that's Gross income too?) into a car purchase.
Edit- Theres loads of cars for sale around the 5k mark which are good and fast cars if you can afford the insurance and maintenance.
Jamescrs said:
Am I reading this right? Your income is £15k a year and you are planning on buying a £15k car?
Seriously I'm not sure its wise to put your whole annual income (I assume that's Gross income too?) into a car purchase.
Welcome to modern consumption- spending money years before it is earned! Seriously I'm not sure its wise to put your whole annual income (I assume that's Gross income too?) into a car purchase.
P.S. the difference between Gross and Net on £15k is pretty slim!
OP, can i just point you at this weeks Shed of the Week:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Huge amount of fun for very little outlay, easy to work on, and should be affordable without taking out a huge loan.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Huge amount of fun for very little outlay, easy to work on, and should be affordable without taking out a huge loan.
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