Stopping car finance

[tonksy26]

Long story short the girlfriend is 6 months into a 5 year finance deal with fiat for her punto but she wants out of it completely so she can get a new car and get a bank loan to pay that (interest rates are ALOT lower).

Whats the best way to get out of the deal with fiat ? im not sure weather they would offer to buy back the punto off her but obviously for a lot lower than what she paid for the car and therefore having to folk out a couple grand or so for he difference.

The car cost £8,000 If that makes ay difference.

 

[Rubicon_]

I think the only way is to either trade in or sell the car privately and pay off. Only problem is she will probably still be paying the interest so would be in negative equity as you say.

 

[Adam.]

Phone up and get a settlement figure.

She is going to have to chuck money at it either way.

They will buy back but at a vastly lower price. There is private but again you'll need to put some coin towards it.

 

[JCC]

Keep in mind interest rates may be a lot lower on a loan, but they're also harder to get than finance.

 

[Adam.]

What is the interest rate on finance? They've always been much lower than loans in my experience.


(Appart from ford who wanted 30 something % on a Focus RS lolz)

 

[Rubicon_]

Found a trophy Adam?

 

[Adam.]

Had one for weeks .

Dad went on and on about one for ages (lol) so we got one and hes like "it's too hard". So I'm using it at the moment till I get something else sorted now that I've got my mortgage and everything.

 

[tonksy26]

Keep in mind interest rates may be a lot lower on a loan, but they're also harder to get than finance.

Should be alright to get a loan, will go through her parents name and they have good credit rating.

What is the interest rate on finance? They've always been much lower than loans in my experience.


(Appart from ford who wanted 30 something % on a Focus RS lolz)

I THINK its about 18% which is just stupid. A loan interest is 5.9%

 

[Adam.]

wow...

 

[tonksy26]

wow...

I know. It's what happends when women are let loose with money and cars

 

[Zorr]

Depends as well If she took PCP or HP finance type.

HP is obviously more expensive (no down payment at the end) but it allows to settle earlier without any charge + they give interest rebate if you pay back earlier.

 

[Adam.]

Depends as well If she took PCP or HP finance type.

HP is obviously more expensive (no down payment at the end) but it allows to settle earlier without any charge + they give interest rebate if you pay back earlier.

As does PCP.

 

[tonksy26]

It's on hp finance.

 

[123stevevw]

All depends what deposit she put down initially etc and how much she now owes compared to the current value of the car. Ring Fiat Finance and get a settlement figure. Go to a few garages and see what they offer for the car. That way you'll have an idea of what (if anything) it will cost to get out of the Fiat by selling it and using that money to pay it off.

As its so early in a 60 month agreement chances are, unless she put a decent deposit down, that she is going to owe more than the car is worth and so will need to put some money into it. All this is guesswork until you get a value on the car and a settlement figure. Nobody here can answer your question properly until you have these two bits on info.

 

[Filippo]

Some companies will settle the finance when you buy a new car from them.

Can you not bang the new one on an interest free credit card for 15months?

Or better still, buy a car you can afford? Debt only results in more debt in my experiences.

 

[ColinG]

I'm confused... Does she hate the car or is it just the high interest rates??

surely any money you have to throw at it to buy yourself out of the punto will more than offset the lower interest at the bank??

or has she realised that she can't afford it per month and wants something worth alot less??

 

[yeecup]

Is it with blackhorse?

 

[tonksy26]

I'm confused... Does she hate the car or is it just the high interest rates??

surely any money you have to throw at it to buy yourself out of the punto will more than offset the lower interest at the bank??

or has she realised that she can't afford it per month and wants something worth alot less??

She just wants something different now. So I got looking into a fiat 500 abarth and basing on getting 1 for around 10k with a 5,.9% bank loan she would pay that back at £188 a month, which is a tiny bit cheaper than what she is paying now for the punto she has.

 

[Harbinger]

I worked for Herds Renault Years back and clients could hand back the car after a year providing it was in good cond and mileage was within the agreement etc and it was all cancelled........ mind they did go bust in 2005 but they have always sold HP schemes as being able to hand the car back and ending the agreement but there will be a time limit, alternatively if she is willing wrap the car around a lamp post and have insurance pay the finance off and start again.... but again this is Fraud.......

 

[Gally]

I'd trade it in against the 500 finance the loss and then hand the 500 back after half the pcp or whatever then properly start again.

May cost you a tad more but better option at a clean slate. I've never had car finance so I could be talking b****cks.

 

[JCC]

If she put down a decent enough deposit she might be able to squeeze enough out of the garage at trade in to clear the finance, check that route first.

 

[Bluebeard]

She just wants something different now.

What's to say that she won't want something different in another 6 months??

I'm sorry to sound harsh, but she needs to learn that she's a grown adult, she made the decision and she needs to stick with it. Instead of getting her parents to bail her out because she fancies something different.

 

[tonksy26]

What's to say that she won't want something different in another 6 months??

I'm sorry to sound harsh, but she needs to learn that she's a grown adult, she made the decision and she needs to stick with it. Instead of getting her parents to bail her out because she fancies something different.

Fair point. She is only 20 though. And this will more be 'our' car as ill be on the insurance ( I bring it down with my epic driving skillz). Obviously a 500 abarth is a epic car to own when your 20 compared to a punto and with my input to what happends with it I'm sure she will keep it for alot longer than 6 months mate.

also she will be paying her parents back the Loan on a direct debt. Only using them to get the loan so to speak.

 

[Filippo]

Why would you get yourself into all that debt for a Fiat 500? Buy a mint 172 for £2k and tell your missus she needs to live within her means.

 

[Filippo]

And I have a mate who's had all his loans/insurance through his parents. He's now 29 and has zero no claims and no credit history. It's a complete false economy.

 

[tonksy26]

Why would you get yourself into all that debt for a Fiat 500? Buy a mint 172 for £2k and tell your missus she needs to live within her means.

:banghead: Typical Cliosport knob comment.

I forgot the whole world should drive a clio as its the only car in the world! She doesn't want a old unreliable 172.

Also she has her own insurance so don't know what your on about really.

 

[ColinG]

I still think she should put up with the punto a bit longer,

​5 years is a serious amount of time to finance any car! Pretty sure most people would get bored of a Ferrari after 5 years and want another 172 cup, let alone a punto

 

[tonksy26]

I still think she should put up with the punto a bit longer,

​5 years is a serious amount of time to finance any car! Pretty sure most people would get bored of a Ferrari after 5 years and want another 172 cup, let alone a punto

shes in a 5 year deal now anyway, well she has 4 and a half years left now. So would only be another 5 years from now.

 

[jesus]

shes in a 5 year deal now anyway, well she has 4 and a half years left now. So would only be another 5 years from now.

Only?!

 

[rs 1an]

:banghead: Typical Cliosport knob comment.

I forgot the whole world should drive a clio as its the only car in the world! She doesn't want a old unreliable 172.

Also she has her own insurance so don't know what your on about really.

Is this not a cliosport forum, why not post on a fiat punto forum, i think filippo is correct you need to live within your means and a good condition 172 or 182 is an option, steve at Rsport on here has a nice 172 for sale soon :approve:

 

[Filippo]

:banghead: Typical Cliosport knob comment.

I forgot the whole world should drive a clio as its the only car in the world! She doesn't want a old unreliable 172.

Also she has her own insurance so don't know what your on about really.

Where did I say anything about her insurance?

I mentioned a 172 because you obviously want something nippy and, being on this site, you were likely to have an affinity for Clio's. And a well maintained 172 is not unreliable at all.

Go get your Abarth you f**king nugget.

 

[Bluebeard]

Fair point. She is only 20 though. And this will more be 'our' car as ill be on the insurance ( I bring it down with my epic driving skillz). Obviously a 500 abarth is a epic car to own when your 20 compared to a punto and with my input to what happends with it I'm sure she will keep it for alot longer than 6 months mate.

also she will be paying her parents back the Loan on a direct debt. Only using them to get the loan so to speak.

I understand where you are coming from. Because you're a man.

She is a female though. And she probably said when she signed up for ther punto ''5 years is nothing, i'll be fine'' and now look.... 6 months down the line it's going to cost her a LOT of money as she pays to clear her negative equity, lumps it onto a loan and buys ANOTHER new car on a 60 month finance agreement... If she gets bored in 12 months time, she will have to lump the negative equity from the punto AND the 500 onto the next fashinable car, and start her finance all over again...

I'm not saying this as an insult or to belittle you in anyway. I'm saying it from experience. I used to sell new cars and saw it with young girls all the time. Paying finance on a new Clio campus sport that had a retail price of £6995, but by the time we'd lumped their negative equity onto the deal, they were financing £10,000 over 5 years at £270 a month. (Rough guess, about £13/14000?)

​It's just mental.

 

[ColinG]

I understand where you are coming from. Because you're a man.

She is a female though. And she probably said when she signed up for ther punto ''5 years is nothing, i'll be fine'' and now look.... 6 months down the line it's going to cost her a LOT of money as she pays to clear her negative equity, lumps it onto a loan and buys ANOTHER new car on a 60 month finance agreement... If she gets bored in 12 months time, she will have to lump the negative equity from the punto AND the 500 onto the next fashinable car, and start her finance all over again...

I'm not saying this as an insult or to belittle you in anyway. I'm saying it from experience. I used to sell new cars and saw it with young girls all the time. Paying finance on a new Clio campus sport that had a retail price of £6995, but by the time we'd lumped their negative equity onto the deal, they were financing £10,000 over 5 years at £270 a month. (Rough guess, about £13/14000?)

​It's just mental.

Nail > head as usual from Daniel

Seriously get your gf to read this advice before jumping in! Once you sign...your committed into it unless you pay heavily to end it early..

We are 1 month into a 48 month PCP deal on our BMW, and I was wary even taking this out, however it's between 2 of us, and we are sorted with our house and monthly outgoings..

In 5 years time she might want a house, lose job, get pregnant etc...

 

[tonksy26]

I understand where you are coming from. Because you're a man.

She is a female though. And she probably said when she signed up for ther punto ''5 years is nothing, i'll be fine'' and now look.... 6 months down the line it's going to cost her a LOT of money as she pays to clear her negative equity, lumps it onto a loan and buys ANOTHER new car on a 60 month finance agreement... If she gets bored in 12 months time, she will have to lump the negative equity from the punto AND the 500 onto the next fashinable car, and start her finance all over again...

I'm not saying this as an insult or to belittle you in anyway. I'm saying it from experience. I used to sell new cars and saw it with young girls all the time. Paying finance on a new Clio campus sport that had a retail price of £6995, but by the time we'd lumped their negative equity onto the deal, they were financing £10,000 over 5 years at £270 a month. (Rough guess, about £13/14000?)

​It's just mental.

I totally appreciate what your saying mate. And I understand it all and would never personally get into a finance deal but the gf is already in one now and paying ALOT ! Just to throw a few figures at you she's paying 200 a month now for the punto. Now I've worked out if she got a 10k loan for the same time (another 5 years which whose stuck in anyway) then because the banks lower interest rate it works out at £188 a month.

I might have missed something or got something wrong but I think to have a newer abarth makes financial sense ( apart from running costs which for a new car isnt as bad as a older car) as she is stuck in a finance deal already anyway. The bit I wasn't sure on was how she would write this current car off hence the thread. Obviously if in order to write this cars debt off it costs a few ££££ then it won't mar financial sense but my question was to see how writing a finance deal off early was possible.

 

[tonksy26]

Please do correct me if I have missed out abit as I haven't delt with a loan or finance before so it is possible.

One other thing is in the next couple of month she is expecting a big-ish payout from a crash she had and so she does plan to what ever loan or finance deal she sticks with then pay most of that back or at least reduce the 5 years to alot shorter time.

 

[Filippo]

*holds tongue*

 

[Adam.]

Before this goes any further, phone up and get a settlement figure.

 

[Sargara]

So shes paying £200'ish a month for the Punto and you are advising her to cancel the finance agreement AND THEN take out an additional bank loan (£10k for £188 per month) all for the sake of saving £12 per month. Seriously?

Just chalk this one up as a lesson learnt and either part-ex to a dealers forecourt and give them £3k to cover the APR or hand it back to the Finance company and walk away (if you even can after such a short time). I bet in the 6 months paying back she hasnt even begun to touch the value of the car yet you will still be paying back the interest.

 

[TIG ACM]

As said above, phone up get settlement figure before you do anything.
Depending on their terms and conditions it may not actually be that bad.

Secondly if you girlfriend cant hack a 5 year deal this time, how is she going to cope again? £200 a month for a car is nothing really by paying less than £50 a month more she would have shortened her finance term by a year easily!

If it were me and my girlfriend had got herself in this mess I would get settlement, sell the car, pay off finance, buy something relatively cheap to run about it. Save like a pauper for a year, then put a bigger deposit down and do the finance over three years.