Trading Down after a few weeks ownership

[martin mrt]

I've only had my 330d Tourer, but due to a situation at work I've found my salary shrinking by 10k PA at least, (loss of Overtime) and this is what paid for my car, I'm gutted to say the least,

I still need a decent car for the OH (shes expecting our first child in Jan)and as the 330d is on Finance I think it would be easier trading down to say a 8-10k A4 or suchlike, I'd have no worries even having a 5k Golf as I don't want to struggle seeing as January is going to be such a changing time for us

I reckon I may be screwed but anyone have any experience of doing similar?

[Mazdarese]

martin mrt said:

I've only had my 330d Tourer, but due to a situation at work I've found my salary shrinking by 10k PA at least, (loss of Overtime) and this is what paid for my car, I'm gutted to say the least,

I still need a decent car for the OH (shes expecting our first child in Jan)and as the 330d is on Finance I think it would be easier trading down to say a 8-10k A4 or suchlike, I'd have no worries even having a 5k Golf as I don't want to struggle seeing as January is going to be such a changing time for us

I reckon I may be screwed but anyone have any experience of doing similar?

I had to do the same last November. A large tax bill meant I had to sell my 147 GTA, and buy a 2003 156 1.8. I had as much fun in the 156 even if it didn't look the part or have any power. Whilst at first I was gutted, it didn't take long to realise that it's only a car at the end of the day and there are more important things in life. For example the arrival of your first child!

Plus, it's only temporary. Stay positive that things will get better and in 12 months you can trade back up again like I did.




I won't mention that 7 days after trading up to a new car, some s smashed my front door in and stole it.

[kentmotorcompany]

Changing down, after short time always costs a fortune when you have had next to no use from the car. You will effectively be buying two cars at retail price, and selling one at trade price (the PX).

The only way round this is to buy privately and sell privately. Other traders might linch me for telling you this.

Having bought it on finance, this will not be an option for you. You could speak to the finance company, and see if they can extend the term of your loan, thus making your monthly payments a bit less.

[auditt]

Martin its a bummer but youre doing the right thing. Many people out there would struggle just to keep the car

[va1o]

kentmotorcompany said:

Changing down, after short time always costs a fortune when you have had next to no use from the car. You will effectively be buying two cars at retail price, and selling one at trade price (the PX).

The only way round this is to buy privately and sell privately. Other traders might linch me for telling you this.

Having bought it on finance, this will not be an option for you. You could speak to the finance company, and see if they can extend the term of your loan, thus making your monthly payments a bit less.

Spot on

A lot of people don't understand the concept that you loose money by selling you current car at trade and buying at retail in an attempt to trade down/ sideways.

Agreed that the OP should buy and sell privately.

[Chris_w666]

va1o said:

kentmotorcompany said:

Changing down, after short time always costs a fortune when you have had next to no use from the car. You will effectively be buying two cars at retail price, and selling one at trade price (the PX).

The only way round this is to buy privately and sell privately. Other traders might linch me for telling you this.

Having bought it on finance, this will not be an option for you. You could speak to the finance company, and see if they can extend the term of your loan, thus making your monthly payments a bit less.

Spot on

A lot of people don't understand the concept that you loose money by selling you current car at trade and buying at retail in an attempt to trade down/ sideways.

Agreed that the OP should buy and sell privately.

I would have said that too, but the OP said the 330 is financed therefore it will be a bit more tricky.

If a reasonable deposit was placed then it could be possible to get into something cheaper without at least carrying negative equity into the finance or without having to pay cash to the finance company on top of the hit you will take getting rid of a car at trade so soon after buying it.

[va1o]

I guess we need to know what sort of finance.... CH, PCP or HP?

[martin mrt]

Thankfully it's just regular HP, and as posted it's only a car, i have more important things to be concerned about,

Now what would be nice is a book price on the 330d if anyone would be so kind

07 07 43k 330d Auto Tourer with Prof Nav, Xenons, Bluetooth and Leather just had 4 brand new tyres (runflats) less than 1k ago, years warranty and full tax/MOT

[Pig Skill]

Martin - sorry to hear of your predicament and at least you are taking action.

I am sorry to say though - taking out finance for a car on the strength of overtime is a little silly in this current climate if at all.

Hope it works out for you

[andy-xr]

Refinance it

[Jobbo]

Is it an SE or MSport?

Trading down is good fun; it resets your base line and makes you more aware of how much value there is in a cheap car. And you have that warm feeling that the most you can lose is the amount you paid; depreciation is so much less of an issue.

[ecuboss]

martin mrt said:

Thankfully it's just regular HP, and as posted it's only a car, i have more important things to be concerned about,

Now what would be nice is a book price on the 330d if anyone would be so kind

07 07 43k 330d Auto Tourer with Prof Nav, Xenons, Bluetooth and Leather just had 4 brand new tyres (runflats) less than 1k ago, years warranty and full tax/MOT

BMW 3 Series 330d SE Touring
3.0TD Diesel 5-door Estate
6 Speed Automatic Rear Wheel Drive
Year: 2007 07
Mileage: 43,000

Part-exchange Price:
Excellent condition:
£15500
Average condition:
£13950
Below average condition:
£12250
Glasses guide portal:
http://www.virtual-showroom.co.uk/scripts/nuvv/nuv...


I suspect your finance is signifcantly more that that....

Edited by ecuboss on Wednesday 17th November 20:59

[Ray Luxury-Yacht]

Yep, just had to do the same as my businesses have taken a hammering this year.

Porsche 911 to Skoda

[martin mrt]

Thanks for the information guys, looks like it's in -ve equity which I expected anyhow.

I may soldier on with it for a few months yet, the idea of scrimping to get by though doesn't appeal very much.

[thinfourth2]

Overtime is not real wages

Anyone who runs their household on overtime wages is very foolish

And i know a huge amount of folk who do

[Mazdarese]

thinfourth2 said:

Overtime is not real wages

Anyone who runs their household on overtime wages is very foolish

And i know a huge amount of folk who do

I'm sure appreciates you pointing that out.

Ray Luxury-Yacht said:

Yep, just had to do the same as my businesses have taken a hammering this year.

Porsche 911 to Skoda

What are you doing with the luxury yacht?

[scorcher]

Ray Luxury-Yacht said:

Yep, just had to do the same as my businesses have taken a hammering this year.

Porsche 911 to Skoda

I thought this thread was about trading down?

[martin mrt]

thinfourth2 said:

Overtime is not real wages

Anyone who runs their household on overtime wages is very foolish

And i know a huge amount of folk who do

Having had it for the last 10 years guaranteed everyweek and my employer getting stty for not doing it if I need home early for example then it was for me "real" wages that for the last 10 years has paid for my luxuries, such as having a nice car, holidays etc,

I'm maybe not 100% clear here had my partner not been pregnant and going on maternity leave next month the overtime situation i have wouldn't normally be an issue we would both work around it together, but as she is a contractor through an agency she doesn't get full pay, hence this decision being the most logical

I reckon I'd let it go for £18.5k as seeing as it's a BMW AUC with the warranty etc it does represent a good saving over going into the dealer and buying the same car

[SonicHedgeHog]

Just a bit of general advice. It sounds like your household income is about to take quite a bashing at the same time as your costs are about to go up. I don't know what the rest of your finances are like, but it doesn't sound like you're sitting on a mountain of rainy day money so my advice would be to not piss about with this decision. Very soon a lot of things you used to buy without thinking about them are going to look like expensive luxuries and every credit card bill is going to look a lot bigger than it used to.

With this in mind my advice would be to get rid of the BMW asap for a price that is, if necessary, barely acceptable. Get your monthly outgoings down. Then it's time to stop being a badge snob. You do not need a £8-10k A4. Do what that luxury yacht fella has done and get yourself down to Skoda and get a £3k Octavia.

If you think this sounds extreme then just give it a few months. Even if you're a 40% tax payer the loss of £10k overtime is going to knock £500 a month off your income and I bet your wife was on a decent wedge as well. You'll going to lose all her money and, surprisingly importantly, the first £7.5k she earns tax free. I have friends who have gone from two incomes to one when they started a family. They're broke, properly broke. Don't dig yourself into a hole trying to juggle numbers that don't add up.

Glooomy, but useful advice.

[martin mrt]

Sonic you have pretty much hit the nail on the head, top advice, I'll talk to her indoors tonight and tell her what's about to happen.