Car Finance

adeone1

Can anyone help?

Is there anyway to reduce the burden of car finance. I am tied into BMW car finance and due to the credit crunch would like to find a less painful way of reducing both payments and and agreement.

I have just recently had the car valued and the shortfall with my settlement figure is about £3,500. My car has lost £7,000 in just 12 months.

If anyone has any ideas, please advise.

Regards

Asa

Lemonade_Pockets

Bite the bullet until you have paid half the total balance payable then you can had it back!

motorguy

adeone1 wrote: »

Can anyone help?

Is there anyway to reduce the burden of car finance. I am tied into BMW car finance and due to the credit crunch would like to find a less painful way of reducing both payments and and agreement.

I have just recently had the car valued and the shortfall with my settlement figure is about £3,500. My car has lost £7,000 in just 12 months.

If anyone has any ideas, please advise.

Regards

Asa

Most prestige cars have been hit hard over the past year or so. I would suggest unless you *need* to change it, you keep making the payments until later in the agreement when the balance between what you owe and what its worth have levelled off.

uknovaman

Lemonade_Pockets wrote: »

Bite the bullet until you have paid half the total balance payable then you can had it back!

Like LP said, this is really your only option, apart from a personal loan to pay the whole balance off. Basically, BMW would say ' You signed the agreement so you know what the payments are'. Being a repo agent for many years, I 'collected' many cars like this.

stumpjumper120

you should still be able to terminate and send car back even if you have paid under half. you will be liable for the shortfall between the amount paid and the half figure. there should also be no interest added to the liability £ and you will normally be able to pay a lower figure.
you can only do this for hp and a regulated agreement
giving the car back does not reflect badly on your credit but it will show you still owe £ til settled.

harveybobbles

Or just PX it somewhere for a smaller/cheaper car amd offset the ammount owed like most people do?

motorguy

stumpjumper120 wrote: »

you should still be able to terminate and send car back even if you have paid under half. you will be liable for the shortfall between the amount paid and the half figure. there should also be no interest added to the liability £ and you will normally be able to pay a lower figure.
you can only do this for hp and a regulated agreement
giving the car back does not reflect badly on your credit but it will show you still owe £ til settled.

Bad Idea!

The finance company will sell it off at auction, thus get a poor price for it, then pursue the O/P for the rest.

stumpjumper120

pgilc1 wrote: »

Bad Idea!

The finance company will sell it off at auction, thus get a poor price for it, then pursue the O/P for the rest.

sorry you are wrong, i currently work for a large finance company and spend my days talking to customers who are in fin diffs with motor finance.
the customer is liable for half the agreement, the liability is the half figure minus the total amount paid which includes any deposits. if you have paid half and are upto date then nothing to pay. if you have arrears then these are liable. if you are £1000 short of a half but have £1400 arrears then you are liable for the £1400. dont forget that you also be liable for any late payment fees or late interest on the acct.
the idea is that the finance co get the other half of the agreement from the sale of the car. if the car fails to reach that figure then it is written off as the customer has a legal right to terminate.
the car must be in reasonable condition for its age. if you are in fin diffs with the finance and the car is not brilliant dont worry as most fin co will stll accept the vt as its cheaper in the long run than chasing you.

adeone1

Thanks to everyone for their replies.
I am still a little confused about ending the agreement half way through or less.
Does this depend o what finance it is or can you do this with all car finance.

Thanks