Advice Please!

[Murzo]

So I got a car a year and half ago, it is a 2005 vauxhall corsa life 1.0 and at the minute its only got 21000 miles on it, nothing special, my parents helped me get it by paying £1000 deposit and insuring me on it but i have paid them back, i had to finance the rest. i got the car for 4995. Im paying £108 a month for 5 years to pay it of because back then i wasnt making that much money. Now i am a bit sick of paying this each month for this car as i am completely bored of it and absolutely hate it, its the one car i didnt want and ended up with lol, but i just wanted a car back then as i had just passed my test.

So im looking for a bit of advice from you guys. I am wanting to know if say i get an older car like a e.g. 1999 mondeo, or 2001 fiesta and gave the dealer my car would this reduce the payments, i am really looking to pay the whole lot of on my credit card then switch credit cards to get 12 months interest free on balance transfers. I really want rid of this car, im going to ring up the bank which financed the car to give me a settlement price if i was going to pay it all of now to see what it will be.

Anyone else got any ideas??? I Ideally want to be paying as little as possible to get it paid of.

Any help/advice greatly appreciated.

Thanks
Murzo

 

[Gilly]

Have you taken into account fees for transferring credit? Its usually around 3%. Interest free is all well and good but it isn't free money.

Speak to the finance company, then decide whether you're best off increasing your payments to pay it off quicker, or paying it all off at once.

Also speak to your bank, ask their advice. It may be that you would be better off seeking a loan.

 

[K.C. Leblanc]

It's not just as simple as taking it to the dealer and asking them to sort out the mess. If you do that at best you'll end up with a very small reduction in you monthly cost and a much less valuable car.

You need to start by contacting the finance company and asking how much they'll charge to settle the finance agreedment. The chances are it'll be more then your car is worth.

Probably your best option will be to get a bank loan to settle the finance agreement. It'll probably be at a lower interest rate (hense cheaper) and it won't be secoured on the car, so your free to sell it. You can then use part of the proceeds to pay off some of the back loan and part to buy a new car.

Don't just walk into the nearest high street bank and ask for a loan. Have a look at moneysupermarket.com and moneysavingexpert.com.