Car Finance Question...

Shep_Cobain

Shep_Cobain

Shep_Cobain

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Happy New Year Guys! Hope you had a good one!

Anyways...

My girlfriend has a Citroen C1 on finance. She pays £160 a month which includes insurance and tax and no MOT as its brand new. She has the car for 3 years and then hands it back with nothing to pay (unless its damaged badly). She can do 15,000 miles a year which is more than plenty and a £30 of petrol usually lasts her 3 weeks commuting to and from work.

Now then, i have a Focus RS... i commute to work two times a week and travel with someone else for the other 3 days. It costs me approx £30 a week to do this. I don't own the car, its on finance with Ford and i payd £230 a month, plus £245 a year road tax and £500 a year insurance. I put down a deposit of £1000 and paid fees etc.

I don't drive the car enough to warrant the costs of keeping it. Dont get me wrong, when i put my foot down it doesnt half put a smile on my face but it just isnt get used enough. It sits on the driveway doing nothing for 5 days a week. I haven't spoken to Ford yet but i was wondering can finance just be cancelled or transferred to a cheaper more cost effective car. Or could i walk into citroen and say have this i want one of them? I want something like what shes got but with a bit more luxury like a new fiesta zetec etc. I want something that is good on fuel and cheap to run....

So my question is... is car finance transferable or do you just have to cancel and start over again?

Thanks.
 
I can't answer that question but I'm pretty sure they would make it unfavorable to alter any finance deal once they've got your signature.
 
scott212 said:
I can't answer that question but I'm pretty sure they would make it unfavorable to alter any finance deal once they've got your signature.
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If i went to citroen can't they buy out the finance though. Say i owed £6000 and my vehicle was worth £5000. They would take my car as p/x pay of the finance of £6000, set me up with another vehicle on finance and add the £1000 on top of their deal?
 
You bought a new focus rs but dont drive it?
Have you put pics up? they look great imo. Shame you are looking to get rid.
 
the car isnt yours its the finance companies.

usually if you have paid over half, then you can hand the car back as the other half and that will end your agreement.

Or you can write to the finance company and ask if you can seel the car, you can then privately sell the car for an amount, and have that person pay off the finance company (and if any you owe the remainder, or if its surplus finance company give you money back).

Or you can get another loan, pay off the car and then pay back that loan, depends on your financial situation. Handing the car back is throwing money away really i'd reccomend getting a loan paying off finance and then selling the car.

My car is on finance, and on second thoughts it was an impulse buy and i wish i hadnt of, plan is to pay it off asap.

I have the new fiesta zetec s, 59 plate over a 5 year deal, costs me £190 a month.

i end up paying around £2k interest over this time. dont finance, buy the car outright.
 
ashrobbo said:
the car isnt yours its the finance companies.

usually if you have paid over half, then you can hand the car back as the other half and that will end your agreement.

Or you can write to the finance company and ask if you can seel the car, you can then privately sell the car for an amount, and have that person pay off the finance company (and if any you owe the remainder, or if its surplus finance company give you money back).

Or you can get another loan, pay off the car and then pay back that loan, depends on your financial situation. Handing the car back is throwing money away really i'd reccomend getting a loan paying off finance and then selling the car.

My car is on finance, and on second thoughts it was an impulse buy and i wish i hadnt of, plan is to pay it off asap.
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Yeh i kinda bought mine on impulse. Wish i hadnt now, but if i went back to the Ford garage i can't see why they couldnt give me a brand new fiesta zetec diesel which does 50+mpg and lower the payments. Hell, if they don't lower the repayments i'm not too fussed because at least i won't have to pay for servicing, MOT's, Tax etc.
 
The thing withit being Focus RS is that they have held thier value pretty well - you may even be in a position where your outstanding finance is less that the value of the car - not usually the case with finance deals.

Mk1 RS in original cond with low mileage should be about £10k.

How much is your outstanding finance?
 
amigafan2003 said:
The thing withit being Focus RS is that they have held thier value pretty well - you may even be in a position where your outstanding finance is less that the value of the car - not usually the case with finance deals.
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I was thinking this the other day - The MK2 RS has barely depreciated at all unless you pre-ordered and paid top money. I kind of wish I'd ploughed my cash into one of these instead of the ST.
 
Shep_Cobain said:
brand new fiesta zetec diesel which does 50+mpg.
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I doubt you would hit 50mpg, the 1.6 tdci will do roughly 45-47mpg.

you would have to drive like a grandad on motoroways to hit 50mpg.

still not bad though, but lowering your payments isnt that just going to create the same but lesser issue?

why not buy a car you can afford outright, if your running a car a few days why do you need nearly new/new?

you can get some fairly nice cars for 3k which are bomb proof, pocket the cash you would save into essential repairs.

its going to take you a long few years of ownership to be better off.
 
Hmm yes the Focus RS. Where the design team arrived at the final version by releasing the handbrake at the top of a hill to Toys R Us and Halfords and seeing what happened.
 
If you are not doing that many don't bother with a derv.

You could consider getting a personal loan to finance your next car, it could work out cheaper, but also may get in the way of a part-ex. There are options to look at.

I'm not sure why everyone on this forum is so hung up on buying a car outright. Not everyone has 10k+ to blow on a car.
 
Robbie G said:
Hmm yes the Focus RS. Where the design team arrived at the final version by releasing the handbrake at the top of a hill to Toys R Us and Halfords and seeing what happened.
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This thread is about the mk 1, not the mk 2.
 
ashrobbo said:
i end up paying around £2k interest over this time. dont finance, buy the car outright.
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The problem is, the cost of ownership is overrated these days. People often refer to buying the car outright as "owning the asset". Assets are only worth owning if they appreciate in value or at least maintain their value. Cars have a habit of doing neither.

Good friends I have at manufacturer level are all saying the same thing, which is people are starting to view the purchase of a new car as a service more than anything and upon taking vehicles back after their lease term, manufacturers look to make some money via their pre-approved programmes.

There isn't much money in new car sales, it's all about the aftersales/servicing etc.
 
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