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  • FIRST POST
    • simpson_77
    • By simpson_77 10th Nov 17, 11:22 AM
    • 69Posts
    • 19Thanks
    simpson_77
    Can I cancel car finance after 6-8 months
    • #1
    • 10th Nov 17, 11:22 AM
    Can I cancel car finance after 6-8 months 10th Nov 17 at 11:22 AM
    Hi,

    Quick question. I'm looking to buy a fun car (M5 E63 AMG etc) to run for 6-8 months for circa £35-40k, Then I will sell / PX for a family 7 seater (XC90 / GLS New Discovery).

    I'm looking at different finance options, and wondering which would be the best one for lower payments and ease of repaying when I sell the car. E.g can I do PCP 4 year term, but cancel 6 months in?

    Cars I'm looking at will be 2-3 years old with around 20-30k miles.

    Thanks,
Page 1
    • iolanthe07
    • By iolanthe07 10th Nov 17, 11:31 AM
    • 4,905 Posts
    • 4,622 Thanks
    iolanthe07
    • #2
    • 10th Nov 17, 11:31 AM
    • #2
    • 10th Nov 17, 11:31 AM
    E.g can I do PCP 4 year term, but cancel 6 months in?

    Yes, you can, but when you come to trade it in you'll take a hell of a hit financially.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • StopIt
    • By StopIt 10th Nov 17, 11:47 AM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    • #3
    • 10th Nov 17, 11:47 AM
    • #3
    • 10th Nov 17, 11:47 AM
    Yes, but cancelling so soon on a performance car could well end you with a five figure sum in negative equity when you do.


    That'll then need to be added to the next finance or paid. Have you the means to do that?
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • simpson_77
    • By simpson_77 10th Nov 17, 3:04 PM
    • 69 Posts
    • 19 Thanks
    simpson_77
    • #4
    • 10th Nov 17, 3:04 PM
    • #4
    • 10th Nov 17, 3:04 PM
    My thinking is to buy low mileage and put a maximum of 10k on it, so it shouldn't lose too much in value. its just finding the right finance option. i thought about HP, with £10k deposit and selling for the same or marginally less then I paid, In theory all I would lose is the interest I paid for that period correct?
    • tykesi
    • By tykesi 10th Nov 17, 3:12 PM
    • 1,819 Posts
    • 2,516 Thanks
    tykesi
    • #5
    • 10th Nov 17, 3:12 PM
    • #5
    • 10th Nov 17, 3:12 PM
    I assume if you're buying with HP you're buying from a dealer? There's next to no chance of selling "for the same or marginally less then[sic] I paid because if you sell privately nobody will pay dealer prices for a car on the private market and if you sell to a dealer you're only going to be offered trade price.

    For an idea of how much you'd lose find a car at a dealers then plug the reg into We Buy Any Car the difference is what you're likely to lose.
    £2017 in 2017 - £5396.83
    • StopIt
    • By StopIt 10th Nov 17, 3:26 PM
    • 1,391 Posts
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    StopIt
    • #6
    • 10th Nov 17, 3:26 PM
    • #6
    • 10th Nov 17, 3:26 PM
    My thinking is to buy low mileage and put a maximum of 10k on it, so it shouldn't lose too much in value. its just finding the right finance option. i thought about HP, with £10k deposit and selling for the same or marginally less then I paid, In theory all I would lose is the interest I paid for that period correct?
    Originally posted by simpson_77

    Basically, do the following.


    Look for the car you want, and find the price for it.


    Put the registration in a car buying website (Think the one with multi coloured cars in the logo).


    Note the difference in the price you'll pay and the price they'll pay.


    Of course you'll need to settle the finance too, so any outstanding interest etc.


    If you find that amount acceptable for playing with a car for 6 months, go right ahead!
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • tykesi
    • By tykesi 10th Nov 17, 3:40 PM
    • 1,819 Posts
    • 2,516 Thanks
    tykesi
    • #7
    • 10th Nov 17, 3:40 PM
    • #7
    • 10th Nov 17, 3:40 PM
    Basically, do the following.


    Look for the car you want, and find the price for it.


    Put the registration in a car buying website (Think the one with multi coloured cars in the logo).


    Note the difference in the price you'll pay and the price they'll pay.


    Of course you'll need to settle the finance too, so any outstanding interest etc.


    If you find that amount acceptable for playing with a car for 6 months, go right ahead!
    Originally posted by StopIt
    Not that this is a p!ssing contest but didn't I just say that?
    £2017 in 2017 - £5396.83
    • Lucky Duck
    • By Lucky Duck 10th Nov 17, 4:01 PM
    • 113 Posts
    • 64 Thanks
    Lucky Duck
    • #8
    • 10th Nov 17, 4:01 PM
    • #8
    • 10th Nov 17, 4:01 PM
    Probably cheaper to hire or lease one?
    • ReadingTim
    • By ReadingTim 10th Nov 17, 4:35 PM
    • 2,151 Posts
    • 3,048 Thanks
    ReadingTim
    • #9
    • 10th Nov 17, 4:35 PM
    • #9
    • 10th Nov 17, 4:35 PM
    Not that this is a p!ssing contest but didn't I just say that?
    Originally posted by tykesi
    If the OP thinks his plan is a good one, he probably needs it spelling out why it's not. In very simple steps. Your post had too many words...
    • Tarambor
    • By Tarambor 11th Nov 17, 3:59 PM
    • 1,580 Posts
    • 1,081 Thanks
    Tarambor
    My thinking is to buy low mileage and put a maximum of 10k on it, so it shouldn't lose too much in value
    Originally posted by simpson_77
    The mileage won't be what causes you to take a wallet pounding, time is. By the time you come to sell it it'll be yet another registration letter behind a new one which will hit its value. If there has been a facelift since then expect to get doubly hit.

    Look on Ebay for similar cars which have been sold and look at what the amount they've sold for by age is. That'll give you some idea of the depreciation.

    High performance cars like that which are widely available depreciate like you wouldn't believe.
    • StopIt
    • By StopIt 13th Nov 17, 8:43 AM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    Not that this is a p!ssing contest but didn't I just say that?
    Originally posted by tykesi

    I hit Reply, and started my reply before your post appeared.


    Nothing wrong with a consensus however.


    Still, my PM box is always open if you're not happy with my postings in any way!
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • nic_c
    • By nic_c 13th Nov 17, 9:24 AM
    • 1,088 Posts
    • 620 Thanks
    nic_c
    OP has said he's not buying new cars, so it could well be as was said by one fellow forumite with ample white space, and another with a more compact text approach. to compare purchase and sale prices. There are alternatives such as leasing a car for a few months.

    Then there is insurance, which will be more on a "fun" car than will be for the family bus.

    Alternatively buy a gaming console and big TV and which will probably cost less than the loss and continue to have fun drives without leaving the home
    • Clive Woody
    • By Clive Woody 13th Nov 17, 10:09 AM
    • 4,398 Posts
    • 5,009 Thanks
    Clive Woody
    Probably cheaper to hire or lease one?
    Originally posted by Lucky Duck
    Exactly what I was thinking and at least that way he will know up front how much 6 month of use of the car will cost him.
    Rugby Union - The Greatest Game
    • Integroo
    • By Integroo 13th Nov 17, 1:43 PM
    • 10 Posts
    • 3 Thanks
    Integroo
    If you are buying a relatively new performance car, you will take a huge hit in depreciation.

    There are plenty of fun cars you can drive for six months that won't depreciate anywhere near as much as a relatively new M5 (and indeed are likely to be more fun than a two tonne four door saloon! Lotus Elise, for example. If you really want a super saloon, I would advise an older one for less money - though you ofc bring the risk of maintenance and repairs - but if you buy well you should hopefully be fine for six months. If you are brave or know a lot about cars, buying privately will minimize the depreciation hit.

    I would finance it via personal loan - not linked to the car and more flexible when you want to sell.
    • fiisch
    • By fiisch 13th Nov 17, 10:30 PM
    • 201 Posts
    • 78 Thanks
    fiisch
    Have you thought about the boring car + fun car option?

    Could you look to get the Volvo and a Subaru Impreza STI / E46 M3 / Mitsubishi Evo 6 as a weekend toy?

    M5 / E63 / RS6 will take a big hit for the joy of 6-8 months ownership, and whilst you won't get the same creature comforts, you can go as fast - if not faster - for lot less.
    • tykesi
    • By tykesi 14th Nov 17, 8:48 AM
    • 1,819 Posts
    • 2,516 Thanks
    tykesi
    Don't think we're telling the OP what they wanted to hear, they won't be back.

    I do agree with Integroo though, plenty more fun cars out there than a fast family saloon. I bought a 3.0 Z4 after selling a motorbike but still wanting a weekend toy. Paid £4400 for it and sold it for £4k almost a year to the day after I'd bought it. Much less of a hit than you'd take with the cars the OP is on about.
    Last edited by tykesi; 14-11-2017 at 8:52 AM.
    £2017 in 2017 - £5396.83
    • simpson_77
    • By simpson_77 14th Nov 17, 4:06 PM
    • 69 Posts
    • 19 Thanks
    simpson_77
    Alternatively buy a gaming console and big TV and which will probably cost less than the loss and continue to have fun drives without leaving the home
    Originally posted by nic_c
    Thanks i already have a games console and big tv
    • simpson_77
    • By simpson_77 14th Nov 17, 4:10 PM
    • 69 Posts
    • 19 Thanks
    simpson_77
    Have you thought about the boring car + fun car option?

    Could you look to get the Volvo and a Subaru Impreza STI / E46 M3 / Mitsubishi Evo 6 as a weekend toy?

    M5 / E63 / RS6 will take a big hit for the joy of 6-8 months ownership, and whilst you won't get the same creature comforts, you can go as fast - if not faster - for lot less.
    Originally posted by fiisch
    Yeah, given they can achieve circa 25-30mpg on a long motorway run, I'm not sure buying a 2nd car + insurance + maintenance would work out cheaper. I have thought about the mile muncher option alot, but will most likely just have the 1
    • simpson_77
    • By simpson_77 14th Nov 17, 4:13 PM
    • 69 Posts
    • 19 Thanks
    simpson_77
    So, I looked at a lease, and it only the new model being launched EOY so £1,800pm WOW...I don't mind taking a hit on the car of a few grand for the smile every time I drive it. Decided on £25k loan @ 3.9% and 0% credit card. Pick her up on Thursday .
    • simpson_77
    • By simpson_77 14th Nov 17, 4:17 PM
    • 69 Posts
    • 19 Thanks
    simpson_77
    Don't think we're telling the OP what they wanted to hear, they won't be back.

    I do agree with Integroo though, plenty more fun cars out there than a fast family saloon. I bought a 3.0 Z4 after selling a motorbike but still wanting a weekend toy. Paid £4400 for it and sold it for £4k almost a year to the day after I'd bought it. Much less of a hit than you'd take with the cars the OP is on about.
    Originally posted by tykesi
    Went to France for a few days to see the D-day beaches, didnt go online!

    I save and invest a lot every month and thinking hey, you cant take it with you so may as well spend what I have. Maybe it's my post 40th B-day midlife crisis
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