Finance questions, or a get out clause?

[t0m]

Hi.

I've had my 1.2 16v Extreme Clio (55 plate) for just under 18 months now. It's been 18 months of heaven. Alright, it's not fast, it's not as stylish as the sport models and it's not stacked with electronic masterpieces, but it's my little car.

Unfortunately, due to a change in work circumstances, I now have to travel double the distance than before, before being the circumstance I was in when purchasing the car, which would have made the 30k limit (over 3 years) a doddle. I'm now approaching 21k with 18 months left of the 3 year agreement (not looking good is it). I've read and re-read the contract but can only see the 75p per extra mile charge stated on there in small print. So by my maths, if I go 100 miles over (highly likely i.e. Certainty) I will pay £75. And that's if I only do 100 miles. It's going to cost me a fortune to run it any longer, and I begrudge, rightly or wrongly paying £150 a month to just leave it on the road collecting dust, well I can't anyway because of work but you get the jist.

I've had a look on here and people seem to have much success returning their cars and taking out new ones and continuing the agreement in 1 way or another. I'm very happy with Renault and the 1 or 2 problemts I've had have been sorted within hours and they couldn't have gone out of their way more. The thing I can't quite get my head round, is that I read 1 post and it said something along the lines of "When you take your car back, they'll add the outstanding onto another". On that basis, does that mean if I take it back, and get a different car I'll be paying for 2!? That I can't afford. Obviously I understand this is all my doing and I only have myself to blame.

For example though, they have a nice Megane (only obvious "up" grade size wise - finding my baby a bit too small sometimes) 1.4 16V Dynamique 53 plate with 18k, all the toys, alloys, A/C for £6995. This has caught my eye a bit and wondered if anyone could give me pointers on the next step. Obviously if I have to pay through the nose for my stupid mistake then I do, but I couldn't really help changing jobs y'know? I don't want to let the Clio go really, I still feel like I love it 18 months on, like I did they day they drove it round and started showing me it. In the same respect, I have the whole boys toys feeling on getting something different, as I'm sure we all do. Y'know blokes and shiny objects.

Please any advice or tips would be great. Me and the Mrs are moving into our first house later this month so I can't really afford to take on massive amounts of finance. I understand this may be the only option, but just querying if there are other options I could undertake in swapping vehicles.

Thanks.

 

[AnyOldName]

That cant be right, after 18 months you should have done 15k miles, you've done 21k, thats 6k extra at 75p/mile thats £4500!!! thats crazy.

 

[t0m]

When the car went in for it's 18k service, the guy didn't say anything. I'm guessing it must only apply should you own the car for the duration of the 3 year deal. For example, I have a 30k limit so when I take it back with 35k for instance, they would charge for the 5k over. I'm not sure it applies until I hand back the car. There is no mention of a 10k a year limit as far as I can see, therefore technically I'm not over the limit so to speak, until the 3 years are up. Any more help though please?

 

[Laura]

ring them up discuss it with the finance manager.... they will be able to change the policy, it will mean your paying a wee extra each month but not 75p per mile

alternitavely carry on as you are at the end of the agreement pay off the baloon balance outstanding on the car, walk away and sell the clio privetly, leaving you free to buy what ever car you like without the negaive equity you would have by just continuing the scheme.

 

[t0m]

Ok, theres 1 option. Thanks very much makes sense.

Any others? Seen quite a lot on here about it, must be more?

 

[HG2K5]

if you are certain its a 30K in 3years limit and not a 10K per annum limit, ask about returning the car NOW, they should simply take the car back meaning you wont owe anything, but probably wont gain anything either, then simply buy a new car on a standard HP agreement.

the reason I say I think you can hand it straight back is I got my car 3months shy of 3year old with 29,567 miles on it, I then spoke to the previous owner sometime later who said she had the car on a 3yr contract hire similar to yours and she said she had decided to hand it back early, I assume so that when she handed it back it was under 30K miles even tho the ratio of 29,567 miles to 2yr 9months equates to more than 10K a year it is still less than the 30K over 3year limit.

the other option is as someone else said, continue paying off the contract hire each month till the end of the agreement where you then have the option to either hand the car back or pay the lump sum final payment so you own the car outright, then either trade it in for a new 1 or sell it privately and you wont owe a penny.

 

[TJ182]

Taylor summed it up for you. Just do that mate.

 

[Harry182]

You have two options:

1. Don't and it back (assuming its on a PCP) sell it and pay off the finance, may cost a bit to top it up but less than 75ppm.

2. Do a VT (voluntrey termination(spelling!)) about 3 mths before the end, Its all in your finance docs.

 

[t0m]

if you are certain its a 30K in 3years limit and not a 10K per annum limit, ask about returning the car NOW, they should simply take the car back meaning you wont owe anything, but probably wont gain anything either, then simply buy a new car on a standard HP agreement.

the reason I say I think you can hand it straight back is I got my car 3months shy of 3year old with 29,567 miles on it, I then spoke to the previous owner sometime later who said she had the car on a 3yr contract hire similar to yours and she said she had decided to hand it back early, I assume so that when she handed it back it was under 30K miles even tho the ratio of 29,567 miles to 2yr 9months equates to more than 10K a year it is still less than the 30K over 3year limit.

the other option is as someone else said, continue paying off the contract hire each month till the end of the agreement where you then have the option to either hand the car back or pay the lump sum final payment so you own the car outright, then either trade it in for a new 1 or sell it privately and you wont owe a penny.

regarding this point, I have further read the terms and conditions through again. It states its actually a 10k per annum limit. Judging from your point though about the previous owner, she had a 30k 3 year limit? Is there then no option to me at all to take the car back and have a different car, paying the difference as a new agreement sort of thing. i.e. My car is worth £4000 for instance, and buying a car worth £5000, they add the £1000 onto my agreement and adjust the payments accordingly?

Thanks.