Returning car to finance company with a twist

Wolfie1978
Wolfie1978 Posts: 6 Forumite
in Loans
Hi all really need some advice on this. I've been looking at changing my car recently, current car on finance was originally on 46 month plan and we've paid about 27 months off. Car is worth 4.5k trade and we owe 4k. So obviously we were looking to trade it in and knock £500 off the finance for the newer car. Yesterday the air con pump seized and snapped the aux drive belt. Bill to repair is £1000 ish. Obviously I don't want to.spend that on a car I'm trading in. Can I return the car to the finance company in its current condition and will it cost me?
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Comments

  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    If you are looking to return it on VT have you paid >50% of the total of the finance deal? It isn't the time, it is the initial amount plus costs you borrowed and that usually ends up time wise being 2/3-3/4 of the term.

    Would have thought you could have bought a second hand pump and had it fitted for a fraction of that price. A second hand one is £50-£100 and a new one £200 for my Mondeo. Add £20-£30 for a belt and £40 for a regas plus an hour's labour and I'd want change out of £300-£400.
  • Wolfie1978
    Wolfie1978 Posts: 6 Forumite
    I've had a quick search and a used pump is over £200. The cars a mercedes r class so seems to have an extra tax applied to parts. Actually this is the main reason why we want rid of it
  • Wolfie1978
    Wolfie1978 Posts: 6 Forumite
    Also sorry forgot to add. We borrowed 9k for the current car and the settlement figure is just below 4k
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
    Name Dropper First Post First Anniversary
    Wolfie1978 wrote: »
    I've had a quick search and a used pump is over £200. The cars a mercedes r class so seems to have an extra tax applied to parts. Actually this is the main reason why we want rid of it

    Yes, that's the 'mugs tax' which gets put on all MB and BMW cars and their spare parts. All that money for cars which don't even come with indicators or hands free kits!
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • Wolfie1978
    Wolfie1978 Posts: 6 Forumite
    Thank You, so helpful
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Wolfie1978 wrote: »
    I've had a quick search and a used pump is over £200. The cars a mercedes r class so seems to have an extra tax applied to parts. Actually this is the main reason why we want rid of it

    You should be able to get it totally repaired for around £350-£400 in that case. Could be worse given the make of car.

    VT is an option but check for clauses about being in a roadworthy condition and also be aware that a VT can make it difficult to get car finance in the future.
  • Wolfie1978
    Wolfie1978 Posts: 6 Forumite
    Ok, thanks for that. I wasn't aware a VT would effect my credit like that. I really don't fancy that after building my credit history back up since a bankruptcy in 2009
  • k3lvc
    k3lvc Posts: 4,174 Forumite
    First Anniversary Name Dropper First Post
    Tarambor wrote: »
    VT is an option but check for clauses about being in a roadworthy condition and also be aware that a VT can make it difficult to get car finance in the future.
    Wolfie1978 wrote: »
    Ok, thanks for that. I wasn't aware a VT would effect my credit like that.

    Depends on the manufacturer - I've done it twice with no adverse effects, once moving to another manufacturer and once VT'ing an Audi at the dealers suggestion to take out another Audi agreement
  • jimbo747
    jimbo747 Posts: 630 Forumite
    A VT will not adversely affect your credit worthiness (won't say score as that's a load of made up crap).
  • bazzyb
    bazzyb Posts: 1,584 Forumite
    First Anniversary Name Dropper Photogenic First Post
    jimbo747 wrote: »
    A VT will not adversely affect your credit worthiness (won't say score as that's a load of made up crap).

    Not strictly true: a VT marker on your credit file may make it more difficult to get car finance in the future. Some lenders don't like it, some aren't bothered by it at all.
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