help with finance please

cm1179

cm1179

cm1179

Soldato
Joined
30 Sep 2009
Posts
3,626
i bought my vw lupo from a vw main dealer in august 2009, got £1000 p/ex for my golf (MOT failure - needed a whole lot of work) and the remaining £4500 is through finance over 4 years, so 3 years finance @ about £80 p/m left.
i now find myself in the position of needing a van, (something like a vw transporter), instead of a car. i have checked my closest vw van centre and a year old transporter can be had for about £12k.
now, as much as i love vw's, i realise a van which would do the same job (though be a bit older) could be obtained for half the price or an equivalent ford transit could be had for a little less than £12k, probably closer to £10k if i shopped around.
i would like to know if there is any way out of the finance, though i am assuming this would mean taking a hit on the lupo or whether a ford van centre could transfer any existing finance i had paid, take the lupo in px and leave me with a recalculated finance payment on a transit, or whether i have no option other than to stay with vw and transfer the finance and px my lupo through them? would a van centre take a lupo as px?

any help appreciated
 
If you are mid way through the finance, you can usually hand back the car penalty free assuming its in reasonable condition for its age. They might make a note on your credit file that you did this but it shouldn't matter.

Both will probably take the Lupo and auction it anyway. Other places might buy it off you and you settle the remaining finance if there is any.
 
It seems you are caught up in a mess of finance. The best thing to do is clear it and simlpy buy a cheap van rather than getting yourself into yet more finance surely?
 
[TW]Fox;17804307 said:
It seems you are caught up in a mess of finance. The best thing to do is clear it and simlpy buy a cheap van rather than getting yourself into yet more finance surely?
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This - or a small unsecured loan to clear the finance, plus however much else you would need on top of the car to buy a van
 
You can obtain a early settlement figure for the car finance, it should mean that interest is only paid upto the point of settlement. The garage will deduct the settlement amount from part exchange value and settle on your behalf.you will then be able to use the equity as deposit for the van, the balance can then be financed normally over 1-5 years. Given the state of the car industry at the moment you should be able to secure a new loan with a flat rate of interest close to 4%.

Hope it helps.

(car sales exec for last 10 years)
 
torinn said:
You can obtain a early settlement figure for the car finance, it should mean that interest is only paid upto the point of settlement. The garage will deduct the settlement amount from part exchange value and settle on your behalf.you will then be able to use the equity as deposit for the van, the balance can then be financed normally over 1-5 years. Given the state of the car industry at the moment you should be able to secure a new loan with a flat rate of interest close to 4%.

Hope it helps.

(car sales exec for last 10 years)
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what would you advise? please take your salesmans hat off ;)
 
torinn said:
Really, and you say this why?
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It's a misleading figure which is used to tempt people with no real knowledge into thinking they are getting a really super deal because most people think there is only one sort of interest rate.

4% flat is circa 8% APR which actually isn't really that bad but it sounds a bit different when its quoted as APR - which includes all the 'extra fees' as well, doesnt it?
 
Your able to part exchange it any where you like. There should be no penalty for settling the existing agreement. Check the new rate. On a used vehicle you can get somewhere close to 3.25-4% flat rate. Which based on the amount borrowed and term will be somewhere close to 7-8% apr. Leaving you bank borrowing for when/if you may need it in the future.
 
torinn said:
It means you can never predict what's going to happen in your life. You may need to borrow funds for house/holiday/wife?
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And how does taking out car finance from a dealer help you do that in ways that taking a bank loan cannot?

Is this the talk you give all your customers when they indicate they might get a better deal borrowing from a bank?
 
Why would you need to regnotiate the existing loan? Is there a law saying you cant take another loan from a different lender?

Credit is credit. You've as much chance of getting another loan if you've got an existing loan as you would have getting a loan if a car dealer has stitched you up with some car finance!
 
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I was merely trying to advise of the low rates available in the trade ATM. So many people get drawn in by the banks typical apr adverts that only 5% of applicants get. Didn't want to se a forum user get burnt that's all. You've obviously had a bad experience buying cars. Don't judge all sales people based on hearsay and slander.
 
I've never had a bad experience buying a car - thats because I'm wise to tricks like attractive 'flat' rates when flat rates are misleading and telling people they should get car credit rather so they can still get a bank loan later.
 
OllyM said:
Also, at least two thirds of customers must be offered the typical APR, not 5%.
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It's worrying what people say to try and convince people to take out car credit isnt it? He's bad mouthing the best product for most peoples needs in favour for the questionable world of 'car credit' :(
 
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