What do i do?

Or you could get the bus?

Or cycle?

Or walk?

And each month, you'd have money aside to clear other debts - and then get a sub-£100 car :)
 
Casdawer said:
Ok, I asked this question a little while back as I was sorting out some of my other finances (which is all done now! \o/)

ANYWAY, one of the questions was regarding my car which I got on Finance from VW.

It's a 1.2l Polo, basic edition with no remote central locking just AC and is currently costing me £190pm - my mileage limit PA is 12,000 which I will go over (I bought this car when I had a job closer to home but had to change due to getting fired) and it's an extra 0.45p PER MILE. I will be going over by about 2/3k so this will cost me an extra £1,000 per year.

Now, as well as paying that £190, I am also paying £150 for a car that I no longer own and still have 3 years left on it (I've been stupid with my money thus why I asked OcUK for finical advise which helped very much).

So currently at the moment I am paying £340 for this car (technically).

Now, I have a plan so please feel free to tell me how stupid / great my idea is and give any pointers when / if needed.

My plan is simple, find out how much it would cost to pay off the Finance then find out how much the VW and hopefully the 2 will match up (give or take) then take a loan out for the remaining loan balance of the £150 loan (about 4k) as well as an extra £8k to pay for a new car.

This of course would be a 12k loan which over 60 months is £240 which is £100 cheaper and it also means that -

a) I own the car
b) I do not have to pay to go over my mileage
c) the car is WAY better
d) I don't have to worry about buying the car after the 3 years are up.

SO, question is my fellow OcUKers - is it a good idea?
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you got finance on a poverty spec 1.2 polo and now you want a 8k loan to buy a new car??? would you not be 8k better off buying used? you can pick up another decent pov spec for around 1k.
 
Matt82 said:
your £1500 deposit could have got you a better car than a 1.2 polo

bad luck
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Luck had nothing to do with it. Plenty of decent hard working honest posters tried to show him it was a stupid thing to do, some idiots said that they were wrong to question the OP and that negativity in motors should be banned or some such nonsense, and the OP ignored all the good posters and went out and did what the idiot posters told him wouldn't be a problem.

There was no luck involved, just really stupid people affirming a really stupid idea.
 
Right, so today I've called my loan company and VW to ask for settlement quotes.

For the loan it's £3261 and for the VW it's £8,575.

I believe I could get £8,000 for the Polo as it's not even a year old, but it has done 10,000k miles.

So, in theory I could pay of the car purely by selling it thus not having to spend any more money towards it.

This would have course leave me the £3,261 for the car loan, but my plan with this would be to increase my loan by £4000 and get myself a Mazda3 hatchback (as I love Mazda's) and keep that car till I run it into the ground. I asked my loan company how much this would cost me per month and they said £145 for 60 months or £176 for 48 months.

I'm already paying £150 for the loan already so I would be paying the same amount but I would not be paying the extra £190 for the Volkswagen.

So, is it a good plan?
 
No it's not, sell your lolpolo then if you must, borrow a grand and get a banger and use all your spare cash to paay off your loan and put some aside for a better car a year or so down the line. driving a car that dosent have you up to the eyevballs in debt feels a lot better than one that does, be sensible and patient.
 
Casdawer said:
Right, so today I've called my loan company and VW to ask for settlement quotes.

For the loan it's £3261 and for the VW it's £8,575.

I believe I could get £8,000 for the Polo as it's not even a year old, but it has done 10,000k miles.

So, in theory I could pay of the car purely by selling it thus not having to spend any more money towards it.

This would have course leave me the £3,261 for the car loan, but my plan with this would be to increase my loan by £4000 and get myself a Mazda3 hatchback (as I love Mazda's) and keep that car till I run it into the ground. I asked my loan company how much this would cost me per month and they said £145 for 60 months or £176 for 48 months.

I'm already paying £150 for the loan already so I would be paying the same amount but I would not be paying the extra £190 for the Volkswagen.

So, is it a good plan?
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No, its a crap plan. There are issues.

a) How do you plan to settle the finance outstanding on the Polo in order that you can sell it?
b) Why do you keep borrowing money to buy cars? You do not need a £4000 car. You do not have any money. Stop spending money you don't have.

Buy a decent £1000ish car and get some savings behind you.
 
[TW]Fox;21393799 said:
No, its a crap plan. There are issues.

a) How do you plan to settle the finance outstanding on the Polo in order that you can sell it?

b) Why do you keep borrowing money to buy cars? You do not need a £4000 car. You do not have any money. Stop spending money you don't have.

Buy a decent £1000ish car and get some savings behind you.
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A) I've been told by Volkswagen that I can sell the car and then pay of the outstanding balance, as long as they get their money they don't care what I do with the car.

B) The reason for this is that where a 1k car will be lovely if my job was just down the road but it's 30 miles away and I have to travel for my job so a 1k banger wouldn't be the best choice for me. I travel a lot and a car that only cost 1k will more than likely be un-reaiable and old.
 
Well, you can't really - anyone with half a brain will HPI check the car.

The way it is usually done is that the buyer will pay your finance company directly.
 
Casdawer said:
B) The reason for this is that where a 1k car will be lovely if my job was just down the road but it's 30 miles away and I have to travel for my job so a 1k banger wouldn't be the best choice for me. I travel a lot and a car that only cost 1k will more than likely be un-reaiable and old.
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I don't think that's necessarily true, as long as you just take a bit of care and try and find a nice cared for example of something, a £1000-£1500 car can be just as reliable as a £4000 car. If you go out and buy a nail of a car that should really cost £2000 for £1000 then yes, it probably will be a shed and break all the time.
 
Casdawer said:
A) I've been told by Volkswagen that I can sell the car and then pay of the outstanding balance, as long as they get their money they don't care what I do with the car.
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Get this in writing.

B) The reason for this is that where a 1k car will be lovely if my job was just down the road but it's 30 miles away and I have to travel for my job so a 1k banger wouldn't be the best choice for me. I travel a lot and a car that only cost 1k will more than likely be un-reaiable and old.
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It is true that cheaper used cars are more likely to have issues, but a £4k car isn't sufficient above a £1k car to guarantee you wont suffer the same problems.
 
[TW]Fox;21394536 said:
Get this in writing.



It is true that cheaper used cars are more likely to have issues, but a £4k car isn't sufficient above a £1k car to guarantee you wont suffer the same problems.
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When I spoke to the lady at VW she said that what normally happens if the person sells the car to either a tradesman or a private owner is that they'll call up when they're selling the car and the person/company buying the car will pay x amount towards the finance over the phone and then the person selling it would then pay the other part of it (if necessary) so that there is no outstanding balance on the car so the person selling the car doesn't actually get any money.
 
If you sell it for 8k then you will have to live with the fact that you rented a 1.2 Polo for less than a year for ~£4k :(
 
I think the best solution is to just suck up the cost. Taking out more credit etc is not the answer here. Pay off other debts, then sort out the car.

Ive had my 11 year old fiesta for 3 years, and its been more reliable than the brand new 1.6 polo tdi......

price does not = reliability
 
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