Is this the only option for me?

I'm not sure you understand, maybe its my explanation

If I trade in a car at for example they give me £3.5K for it and and £2k of that is cashback to pay my dad off

The remainder is the deposit against the new car and I take a loan for the rest, this is assuming the main dealer is similar in APR to that of a bank loan, they used to be but thats going back a few years so things may have changed?
 
A friend of mine always pays £50 for his car to be properly (not the best) cleaned. Looks amazing after and you would be amazed how much it adds onto the sell price
 
Relentless81 said:
I'm not sure you understand, maybe its my explanation

If I trade in a car at for example they give me £3.5K for it and and £2k of that is cashback to pay my dad off

The remainder is the deposit against the new car and I take a loan for the rest, this is assuming the main dealer is similar in APR to that of a bank loan, they used to be but thats going back a few years so things may have changed?
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Based on what you've posted it seems he does understand.

Currently you have a loan with your dad at presumably a very low APR and the security of being able to halt repayments.
Doing what you suggest will mean you end up with a car finance loan at APR far higher than your dad is charging with no security to easily alter the payment plan.
 
Well yes but if I stay in debt to my Dad by £2k and keep my current car the deposit amount will get smaller and smaller over time as the car depreciates further. If I pay my Dad off monthly I still keep my current car and to be honest after two years I fancy a change

If I go ahead I get to pay my Dad off and get a newer car with an affordable loan in positive equity
 
If you've not got the cash to pay off £2k and your car is only worth £3.5k, then I can't imagine you're going to end up in positive equity as you complete the deal. That 1.5k difference isn't going to even cover the interest payments most likely. Don't try and kid yourself that you're doing this for sound financial reasons - it sounds like you just want a new car.
 
Relentless81 said:
Well yes but if I stay in debt to my Dad by £2k and keep my current car the deposit amount will get smaller and smaller over time as the car depreciates further. If I pay my Dad off monthly I still keep my current car and to be honest after two years I fancy a change

If I go ahead I get to pay my Dad off and get a newer car with an affordable loan in positive equity
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Why is not being in debt to your Dad so important you'd rather be in debt to a car finance company instead?

What sort of car are you going to finance anyway, presumably some sort of 5+ year old £5-10k thing from a trader?
 
PeterNem said:
If you've not got the cash to pay off £2k and your car is only worth £3.5k, then I can't imagine you're going to end up in positive equity as you complete the deal. That 1.5k difference isn't going to even cover the interest payments most likely. Don't try and kid yourself that you're doing this for sound financial reasons - it sounds like you just want a new car.
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Whats wrong with wanting a new car? I would have thought that was quite normal

You're that guy that always pipes in stating people cant afford to do things with offensive and assuming financial advice I've come across your poor advice before, how do you know how much I earn? Or the value of the car I am looking at? A £1500 deposit is a decent enough deposit depending on the value of the replacement car, most morons out there just go and buy a new car with no deposit
 
[TW]Fox;22538224 said:
Why is not being in debt to your Dad so important you'd rather be in debt to a car finance company instead?

What sort of car are you going to finance anyway, presumably some sort of 5+ year old £5-10k thing from a trader?
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Because I want a new car? Isnt that obvious!

I would have said around 4 years old, around £8k and from a main dealer
 
Relentless81 said:
You're that guy that always pipes in stating people cant afford to do things with offensive and assuming financial advice I've come across your poor advice before, how do you know how much I earn?
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You need to try and extract cashback from a car finance deal, so I doubt he needs to be Einstein to work out whether this is a sensible idea or not.

Relentless81 said:
Actually I gave an example of what I was after, you are making assumptions on what I can and cant afford without knowing any facts, bad advice is bad.
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The facts are you want to buy a new car but you can't afford to do so without trying to get some random cashback in the deal. What more does he need to know to make an accurate estimation of the situation?

You have zero deposit other than the value of your car AND you owe somebody else some money such that in order to make your plan viable you need cashback from the dealer to pay them off first. What you never seem to realise when you sound off about people not knowing the 'facts' is you give away enough in your posts!

The most equity you'll have in the deal will be the value of an old Corolla minus £2k. On an £8k car from a main dealer this is immediate negative equity surely?

Keep the Corolla until a new car is affordable without all these bizarre ideas.
 
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What's to assume? If you could afford to pay your dad back the £2k you'd do that regardless, and then look at the car purchase objectively as a separate thing without the desperate need to release £2k from the deal clouding your judgement.
 
Relentless81 said:
Either that or I sell privately, I dont see why its not sensible either, £1500 against £8k is a decent sensible deposit
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No it's not - its probably less than the dealers margin in the deal.

If all you've got is a car with a net value (after this £2k thing) of less than £1500 and no other form of deposit at all, £8k cars from main dealers are probably best left on main dealers forecourts.
 
PeterNem said:
Generally people who need to construct finance arrangements to release cash.
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I need to do anything, its just an option as clearly stated, I dont need to sell my car, I have a few options of what I can do so clearly you stating I am "desperate" is nothing more than looking to cause a problem by giving offensive advice based on assumptions, you have absolutely no idea of the facts at all, you dont know how much I earn, how much debt I have, how much my outgoings are, nothing.

I'm off to the gym ladies, enjoy your Saturday morning hunt
 
Relentless81 said:
you have absolutely no idea of the facts at all
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Thats not true is it? You've already told us the facts:

a) You owe somebody £2k which you feel you must be able to repay as part of the deal
b) You have zero cash deposit
c) You have only the value of an 8 year old Corolla as a deposit
d) You want to take out finance so that you get cashback to pay your Dad
e) You want to buy an £8k+ car from a main dealer
f) You feel you wont be in negative equity

I don't know what gives you the impression he has 'no idea of the facts', you've laid the facts out for him in this thread!

The facts are that a+b+c+d+e <> f
 
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