Paying my car finance off, need advice please...

[doddsy105]

Right so i bought a car on finance, now i want to hand it back. The settlement figure is around £8,400. I can hand back in november when its due but id like to hand back early to save on the payments each month.

Now can you get a credit card with the money and pay it off? or is that a bad idea. Cant you get 0% on transfers etc etc, so use that to transfer the 8,500 to my account then pay it off then sell the car for the amount? if so which is the type of credit card i need.

Or is a loan a better idea, but id have to pay loan re-payments each month till i sold the car.

The reason for this is because i dont want to pay monthly for a car anymore, just want to buy something cheap, any help would be greatly appreciated please.

Cheers guys.

 

[Destination]

If there is a settlement figure, is the car itself not worth something towards this? Or is the settlement figure the shortfall between what it is worth and what you still owe on the finance?
I thought after the mass depreciation of the first couple of years the bubble figure was meant to be pretty close to the value, if not below it, so you had something left at the end, rather than extra to pay?
Is the settlement figure not to actually keep the vehicle, rather than give it back?

 

[One]

If you're over halfway through the contract you can voluntarily terminate and just hand them the car back, no more payments whatsoever.

 

[opstrat]

it wont be £8500 to settle though. it will be whatever your monthly payments are x 8 to bring you to your half way point.

 

[chaparral]

it wont be £8500 to settle though. it will be whatever your monthly payments are x 8 to bring you to your half way point.

That what I was thinking as he he going be around 8 monthly payments short if the car was due to be handed back in November with a 8.4k settlement figure ..

 

[Dup]

Option 1: Sell car, have buyer pay finance off directly +/- cash either way depending on what it's worth.

Option 2: You're going to be paying for the difference one way or another until the vehicle is at half term so might as well wait the few months? You're just moving the debt around and you're already paying it. You'll be handing it back, paying the difference over x years/months and then will need to purchase another car. Surely its best to hold on until you can do it cleanly direct with the finance company without faffing?

Handing back requires the vehicle to be in good condition for its age with a full history etc. You also need to check with the lender if they make a note on your credit file that you handed back as this can sometimes be looked up negatively by other lenders in the future.

I handed back my Type-R back in 2009 so me and my ex could afford for her to do her nurse training. The guy who collected it couldn't believe how good thecondition was and said I shouldn't have done it. He had collected many in his years. Little did I know she was banging some other guy(s). Could have kept it!

 

[chaparral]

The reason for this is because i dont want to pay monthly for a car anymore, just want to buy something cheap, any help would be greatly appreciated please.

Cheers guys.

If your luck with cars is anything like mine..
Buying a cheap car will end up costing you more then what your monthly payments are now..

 

[SPG]

£500 bangers with 8+ months MOT are the future of Motoring imo. If you get lucky and it sales through the next MOT you can flog it on and the extra £3000 grand you have in the bank from the payments saved should set you up for a nicer motor or what real men do buy another motorbike

It really grates me forking out £200 plus for a motor every month for some reason.

 

[[TW]Fox]

it wont be £8500 to settle though. it will be whatever your monthly payments are x 8 to bring you to your half way point.

Not true, as the settlement figure involves keeping the car and voluntarily terminating after 50% does not. Remember its 50% of the agreement in total not just the financed component, so on a pcp which I assume this is the half way point is near the end of the agreement.

This thread would probably be better in motors.

 

[opstrat]

Not true, as the settlement figure involves keeping the car and voluntarily terminating after 50% does not. Remember its 50% of the agreement in total not just the financed component, so on a pcp which I assume this is the half way point is near the end of the agreement.

This thread would probably be better in motors.

sorry i don't follow. how can the halfway point of a pcp finance agreement be at the end?

 

[Third Opinion]

Not true, as the settlement figure involves keeping the car and voluntarily terminating after 50% does not. Remember its 50% of the agreement in total not just the financed component, so on a pcp which I assume this is the half way point is near the end of the agreement.

This thread would probably be better in motors.

I am totally behind this.

Basically having experience of my fingers burnt when my business went down led me to this.

Don't buy a car on finance unless you want to keep it for the finance agreement. Handing it back at 50% will more than likely favour the finance company, they do this for a business and a living.

I feel now that if I can't afford the car outright, finance will not solve my financial problem. I still have the running costs and maintenance on top of my monthly payments.

Basically I am not behind the wheel of the car I would like, but I can afford to maintain it and have no worries about residuals and general condition.

 

[[TW]Fox]

sorry i don't follow. how can the halfway point of a pcp finance agreement be at the end?

Because a massive proportion of the financed amount is held back to the end as the balloon payment.

In simple terms lets say you buy a 20k car on a 2 year PCp at 500 quid a month with a balloon of 10k.

You are borrowing 20k with 10k deferred to the end, after 18 months for example you have only paid off about 7k excluding interest despite being almost finished because the 10k is deferred. So you have got to 75% of the time but have paid back well under 50%.

 

[opstrat]

Because a massive proportion of the financed amount is held back to the end as the balloon payment.

In simple terms lets say you buy a 20k car on a 2 year PCp at 500 quid a month with a balloon of 10k.

You are borrowing 20k with 10k deferred to the end, after 18 months for example you have only paid off about 7k excluding interest despite being almost finished because the 10k is deferred. So you have got to 75% of the time but have paid back well under 50%.

ok. see if you can help me out here.

i am paying £200 per month to my car.

the half way mark is coming up in july. i called the finance company in November last year to confirm what the procedure is for returning the car. i was told i can pay £1800 now or keep paying the £200 a month till july. is there a chance i will have to pay more when i do hand it back?

 

[Richie]

If the car has been kept in good condition then you shouldnt have to pay anything back.... If there is damage then they MAY charge you