Car finance question

[Guilbert]

Right im thinking about getting rid of the clio, as i really need to reduce my monthly bills, and the car payments are a big chunk of those.

I still owe about £5k on the car, i have paid enough to just hand it back. However that would leave me without a car, which i dont want to do.

I am thinking about getting a old shape mini cooper, for about £1500-£2000.

If i was to get one from a dealer, and trade my car in, how would it work.

lets say i can get them to offer me £5k for my car, as its in mint condition etc. What would happen with my current finance, as £2k would pay off the new car, and the other £3k would i assume go to the finance company. would i then be left with a new finance agreement for £2k on the new car?

 

[16v_jon]

who is it with ? Is it HP or dealer finance

 

[Guilbert]

its dealer finance at the moment, Its RFS, but when i have spoken to them before they have said they can finance any car, as long as it comes from a garage.

 

[edde]

RFS are unlikly to let you finance a £2k car of that ages 5 yrs would probably be about the limit.

Best ask RFS about handing the car back and going to the bank for a low interest loan. Then when you need to get the mini go to Renault garage and give them the keys and get a cab/mate to drive you to the other garage to pick up the mini.

Youll have to talk to RFS though and see what there views are youll probaly have to take it to a dealership for them to give RFS a price for it and theyll say how much etc you need to pay to walk away from the contract.

 

[Ben H]

The best thing to do, IMO - and if you want to go down this route - is to sell the Clio privately and give Renault the money (or hand it back if you can). Then find the £1500 - £2000 separately for the Mini however you care. RFS are extremely unlikely to give you a competitive rate on any loan with them, compared to a bank.

You need to think in terms of whats realistic. A dealer will only do a deal like the one youre suggesting if he can make a good profit - this will mean a low p/x value, probably a lot lower than youre thinking. I would avoid this.

If you are sure that this is the route you want to go down, sell privately and take out a small personal loan (if you must).

 

[Guilbert]

thanks for the info guys.

i should have by now paid enough to be able to let me hand the car back, with out ever having to pay anything for it. So trying to sell it seems a bit pointless to me, as the money i sell it for will be going straight to RFS anyway, so they may as well have the car, and they can sell it.

My mum doesnt understand why i would give it back after paying for half of it already, but why not. If i keep it for another year, then i will either have to trade it in for a new car, pay another 2 years of finance, or give it back. so surely its a better idea to get out of it now.

I will give RFS a call and see what they say. I need to see about getting a loan as well to get the new car.

 

[clarkiev6]

if you hand the car back...they will sell it. if it does not reach the balance of the finance...you will owe them the rest...be warned.

 

[Guilbert]

ok, i will ask them about that. But im fairly sure my contract with them states that once 51% of the car is paid off, i can hand the car back , and incur no other charges, providing the car is in good condition, and not over the allowed milege.

 

[Chili Red]

The lowest rate loan you can get at the moment (as far as I know) is 6% from Lombard Direct, but only if you apply online. Be prepared to wait for three days for them to approve it though, like I am!

No finance agreement from a car dealership will be anywhere near this low and it makes a BIG difference!

 

[Toypop]

By the way, I had an old shape Mini and they aint cheap to run.


Fuel consumption on mine was worse than my 182 and the Cooper aint no quicker than a 1.2 16v!!

It is basically a 1950s design that has been slightly tweaked so whilst you can get parts cheap you dont half have to buy a lot of them as there is always something going wrong!

Fighting rust will also become a full time job. Good luck to you!

 

[Guilbert]

Thanks for the heads up Toypop

The mini isnt a defo yet. I just think they are cool little cars, and with buckets and roll cage etc, will be like racing a go kart around town.

What would others suggest for about £1500-£2000

 

[mitch_]

Sorry children Im going to have to stick my two penneth in here. So you know I am a Business Manager for a VW group in Manchester so this is my game.

Clarkie, youre wrong. Sorry pal. If you hand the car back once you have reached your voluntary termination point then you have exercised your legal right to walk away from the car. You owe nothing further on the car but come away with nothing. Only to be used in cases where the settlement on the car is greater than the value of the car, otherwise known as negative equity.

Due to termination rights finance companies using varying rates for cars depending on their age and typically will not finance cars over 5 years. This is because the older the car the harder it is to determine its depreciation, therefore making it more likely that the customer will hand the car back.

As a result the best way to finance old/cheaper cars is through personal loans. Best rates I know of at the moment are to be found at Alliance & Leicester and Northern Rock.

Its because of the termination right that Hire Purchase is more expensive than a personal loan. The securities are less and the risk is greater to the finance company.

For those who dont know RFS business is only underwritten and administered by Capital Bank Motor anyhow. Hope this clears up some confusion.

Mitch

 

[mitch_]

Youre only liable to owe the finance company the difference between what you owe and what they manage to sell it for if they repossess the car by the way.

Mitch

 

[DAVE_RSi]

Quote: Originally posted by Guilbert on 11 May 2005


Thanks for the heads up Toypop

The mini isnt a defo yet. I just think they are cool little cars, and with buckets and roll cage etc, will be like racing a go kart around town.

What would others suggest for about £1500-£2000





cough, my car, cough cough cough, in forsale section

bargain reliable

perfect for you

that or a valver unless u want something newer still but can cope with being slow

 

[Guilbert]

thanks for the info Mitch, thats great info mate.

Dave although im sure your car is great, im not sure i want it. although a valver would be quite nice. Will have to get an insurance quote on it.

 

[Alan]

I bought my car brand new throught RFS....ive had it since october 03, does anyone have any idea when i can hand it back?

 

[badinvincible]

Halfway your agreement.

 

[Alan]

Quote: Originally posted by badinvincible on 11 May 2005

Halfway your agreement.

Very interesting...........

 

[badinvincible]

Just noticed how bad the grammar is/was in my last post.

 

[Alan]

Quote: Originally posted by badinvincible on 11 May 2005

Just noticed how bad the grammar is/was in my last post.

Poor showing mate, poor showing indeed......old age starting already?

 

[mitch_]

Your termination point should actually be written on your agreement. It actually isnt dead on halfway, i.e. not the 18th month of a 36 month agreement.

To calculate a termination point you need to take the amount of money you have borrowed, add all your interest charges as well as any deposit you put down on the car. This value reflects the total cost of the car. Your termination point is half of that value.

Mitch

 

[Guilbert]

My termination point was 51% of the agreed amount borrowed.

So i think i borrowed about £10k including all interest, and can hand it back at just over £5k

 

[Chili Red]

Quote: Originally posted by mitch_ on 11 May 2005

As a result the best way to finance old/cheaper cars is through personal loans. Best rates I know of at the moment are to be found at Alliance & Leicester and Northern Rock.

Bugger youre right..Northern Rock is 5.7% - WHY did I not find that before? *cries*

 

[SoleX]

Quote: Originally posted by Toypop on 11 May 2005
By the way, I had an old shape Mini and they aint cheap to run.
Fuel consumption on mine was worse than my 182 and the Cooper aint no quicker than a 1.2 16v!!It is basically a 1950s design that has been slightly tweaked so whilst you can get parts cheap you dont half have to buy a lot of them as there is always something going wrong!Fighting rust will also become a full time job. Good luck to you!


Was gunna say that myself. I’ve had a few mates who liked the idea of a mini - and bought them. Soon after they tended to become full time mechanics as theyre a nightmare to maintain in comparison with, well, anything really.

gerra valver!

 

[Guilbert]

can decent valvers be had for £1500-£2000?? Or will they be knackered old bangers for that money?

 

[TheCake]

Quote: Originally posted by SoleX on 11 May 2005

Quote: Originally posted by Toypop on 11 May 2005


By the way, I had an old shape Mini and they aint cheap to run.

Fuel consumption on mine was worse than my 182 and the Cooper aint no quicker than a 1.2 16v!!

- 40mpg beats the 22mpg OFFICIAL of what my Cup made, and are you really buying a Mini Cooper to compare with a 1.2 16v Clio.... thats a bit lame.

It is basically a 1950s design that has been slightly tweaked so whilst you can get parts cheap you dont half have to buy a lot of them as there is always something going wrong!

- Thats harsh. And not technically correct.

Fighting rust will also become a full time job. Good luck to you!

- Yes with a Mini you have to actually look after it properly.

Was gunna say that myself. I’ve had a few mates who liked the idea of a mini - and bought them. Soon after they tended to become full time mechanics as theyre a nightmare to maintain in comparison with, well, anything really.

- Not a nightmare to maintain at all. You have to look at any classic car and realise that its a caar. It needs attention. Theres fancy swirly b****cks ECU whiping your arse and makng sure youve changed your underpants. You have to take care of it, give it attention.

The mini I just bought did 34,000 miles last year.

gerra valver!

My 2ps worth.

 

[Guilbert]

Quote: Originally posted by CupCake on 12 May 2005

Quote: Originally posted by SoleX on 11 May 2005

Quote: Originally posted by Toypop on 11 May 2005


By the way, I had an old shape Mini and they aint cheap to run.

Fuel consumption on mine was worse than my 182 and the Cooper aint no quicker than a 1.2 16v!!

- 40mpg beats the 22mpg OFFICIAL of what my Cup made, and are you really buying a Mini Cooper to compare with a 1.2 16v Clio.... thats a bit lame.

Well MPG doesnt affect me, as i drive a 1.2 anyway. So the mini is going to be about the same i guess. Speed wise it dont mind, as being in a mini isnt all about the speed. They are just so much fun, and i bet the cooper would quite easily keep up with a 1.2 clio, and would leave it standing on the twisties (unless you are in freds car of course)

It is basically a 1950s design that has been slightly tweaked so whilst you can get parts cheap you dont half have to buy a lot of them as there is always something going wrong!

- Thats harsh. And not technically correct.

If you get a fairly good one, it should be much of a problem. And i dont mind tinkering with the car at the weekends. it gives me something to do.

Fighting rust will also become a full time job. Good luck to you!

- Yes with a Mini you have to actually look after it properly.

Fighting rust is only a problem if you dont treat the car properly. And looking after the paint work on cars is something i do well. so that doesnt matter much to me either. My dads mate will also do any body work for me i need doing.

Was gunna say that myself. I’ve had a few mates who liked the idea of a mini - and bought them. Soon after they tended to become full time mechanics as theyre a nightmare to maintain in comparison with, well, anything really.

- Not a nightmare to maintain at all. You have to look at any classic car and realise that its a caar. It needs attention. Theres fancy swirly b****cks ECU whiping your arse and makng sure youve changed your underpants. You have to take care of it, give it attention.

The mini I just bought did 34,000 miles last year.

Thats a lot of miles! But like you say, look after it properly and it should be fine.

gerra valver!

My 2ps worth.



I think i will stick with my decision of the Mini, as i got a quote for a valver and although only slightly more than my current car, its still more to insure (and the aim im going for is to save on monthly bills)

Eventually i want buckets and a roll cage in there, and maybe a few choice carbon fibre bits. Who knows, maybe even an engine conversion when funds allow.