Question about car finance?

noneforit

noneforit

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Hello

Ive got a Renault on a 4 year deal which allows me to give it back at the end or pay a lump sum and keep it.

I have had it 2 years and have £6800 to pay on the finance (settlement quote)

Ive been forced to move in on my own in a few months and will be struggling for money. I dont need a car for a while so will be spending £200 a month that I could do with...

I know I need to speak to Renault but has anyone been in this position?

HERE is the valuation on whatcar but im confused as to whether the car is worth what ive got left to pay?!?!?!
 
I work in the motor trade so should be able to help and use RCI Finance (Renault/Nissan) on a daily basis :)

If your on a 48 month PCP deal you've got a couple of options and please forget whatcar they don't value cars for a living and will only lead you to dissapointment!

Really you have t

1) Part Exchange the car for something that will cost you less per month, there are some good finance deals out there at the mo although generally you'll need a decent deposit!

2)If you have paid 50% of your finance agreement (inc. deposit) you have every right to hand the car back to the finance with no adverse effects to your credit rating (as long as it is a Regulated Agreement).

3) Sell the car and put some in to cover the finance.

4) Keep paying for a while!


From the look of it you've got some negative equity there so the car doesn't really cover the amount you owe on it, therefore, realistically the best thing you can do is keepo paying if you can as currently you would have to pay the finance company to take your car from you! At least if you can keep the finance ticking over you'll get some equity in the car...
 
Thanks for the speey reply!

It is a PCP deal and unfortunately Ive only paid about 30%
Number 3 sounds like the best deal as I am definitely in negative equity at present.

Could maybe afford to pay it for another 5 months but not sure if I would still in the negative
 
But let us be honest you are always in negative equity with a car. Nearly all cars go down in value.
 
Munch not true, we've just done an exercise for the launch of the new Qashqai, what we found very quickly was that majority of people who had year to go would be able to buy the facelift model by putting down £250 deposit and dropping their payments in the process (including the £800 increase in price for the facelift).

With PCP it depends how it was initially setup, the lower the GFV (Guarenteed Future Value) the sooner you will get into a positive equity position. It depends how well the model you've bought holds it's value. The main reason for neg eq on a PCP is an artificially high GFV which in the long run does you no real favours...

Laurie, try and find a way to keep paying otherwise you've wasted quite a bit of money there...
 
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That sounds a rough deal, with Ford's Options (PCP), you can walk away at anytime, just give the car back, you only have to pay for excess mileage or any damage to the car. The value of the car when you give it back doesn't matter, you don't get penalised or have to pay for any negative equity.
 
If you read the Ford website you still pay your settlement, quoted from the Ford Options website "Please remember, however, that the responsibility of settling the financial balance remains yours."

If you've bought a car on that premise I think you maybe in for a big shock...
 
Cars lose value Fact.
If you leave a PCP or any other form of finance you will have paid more for the car than it's actual value. If you carry on with PCP then on paper you may not, but you will still end up paying more than a vehicles worth at some point.
 
Munch, your correct knd of. You will always pay more than what you paid for the car. The extra bit is called Interest, and that is what the finance company charges, even on a 0% deal the interest is paid by someone.

However, the acual value of the vehicle is subjective, for example for a long time the new shape Mini gained value because it was so popular and there was a long lead time. I beleive this happened for a short while with the Ferrari California last year (though supply is now better, so not the case).

But if someone will pay a price for a car, then that is what it is worth. Laurie, by all means speak to the garage for a value, but sell it privately if you need to and you will get more.

Also, check your documents to see how much you have to have repaid to voluntary terminate. the 50% will include any deposit you paid, and may not include the balloon, but this will be detailed in the documents, and may possibly be displayed in a £ per thousand of what you borrowed.

The other option is to pick up the phone to the finance co and tell them that you are having problems paying. The last thing they want is someone in arrears or default, so they may be able to help you out with a payment brake reduced payments etc. Although be aware, this may affect you credit rating (though not always) and may add to the total amount you need to repay.
 
TheNissanMan said:
If you read the Ford website you still pay your settlement, quoted from the Ford Options website "Please remember, however, that the responsibility of settling the financial balance remains yours."

If you've bought a car on that premise I think you maybe in for a big shock...
Click to expand...

I've handed back a car to the supplying dealer after 18 months of a 24 month Options agreement. All I had to pay was £60 for going over the agreed mileage. I also know of several workmates who have done similar.
Are you sure what you have quoted from the Ford Options website doesn't refer to when you trade in the car for another as opposed to terminating the agreement.
 
Right...

I called the finance company today..the settlement figure is £7200!!!

They were very helpful and advised that I have a few options

1. Sell the car privately and pay the difference
2. Wait until I have paid 50% (in another 12 months) and give the car back with no penalty under a Voluntary Termination Agreement
3. Pay £2000 (the difference between the settlement figure and the 50% price) and end the finance under the VT agreement now
4. Continue paying the £200 a month for the car

I think I will continue paying until I get near the VT figure and pay the difference to end the agreement

Thanks for all the replies :)
 
Aparantly its legal to sell it privately as long as you have gained the permission from the finance company and are planning to pay off the remainder of the balance straight away

I see where you are coming from thou and I guess i would have to explain it to any potential buyer
 
noneforit said:
Aparantly its legal to sell it privately as long as you have gained the permission from the finance company and are planning to pay off the remainder of the balance straight away

I see where you are coming from thou and I guess i would have to explain it to any potential buyer
Click to expand...

Have you tried phoning round some Renault dealers? You might be surprised at the bids you get...
 
I havent actually, I may take it down to Renault in Maidstone tomorrow to see what they can offer

Cheers for the heads up :)
 
What is the car?

And if you do sell it privately, the way to do it is to ask whever buys it to send the full sale price to the finance company, who will then settle the balance and send you anything that is left. That way the buyer nows that have not been scammed and the finance is paid, everyone is happy.

And not everyone does a HPI check before they buy a car....
 
Its a Renault Twingo (dont laugh :))

Im not sure im going to sell it privately, I will likely pay for 6 more months and just stump up the final 1k and hand the car back under the VT thing

Cheers
 
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