car worth less than what is due on finance

LandyAndy

thescouselander wrote: »

I wouldn't be too concerned about finance over 5 years. As long as you put a good deposit down you can stay ahead of the depreciation and if anything happens you just sell the car and settle the loan.

I would be, particularly when, as for the OP, it is on a second hand car.

In general I suspect people taking 5 year finance don't have a large deposit and are stretching the term to make the finance just affordable.

forgotmyname

OP doesnt seem to be offering anything as deposit??

On the cars 5th birthday you dont really want any fnance outstanding on it. Repairs could be just around the corner.

wuckfit

Isn't there a clause that if you've paid more than 50% (IIRC) you can just hand the car back to the finance company and walk away? If the outstanding finance is greater than the value of the car, that's what I'd be considering.

LandyAndy

wuckfit wrote: »

Isn't there a clause that if you've paid more than 50% (IIRC) you can just hand the car back to the finance company and walk away? If the outstanding finance is greater than the value of the car, that's what I'd be considering.

But he bought it less than two years ago on a five year agreement so that is hardly likely to apply, is it?

jakeleo09

hi, the car in a suzuzki sx4 4 grip in blue and is an 06 plate. i bought it last year and has been estimated by a dealer at £5000 trade in. The balance of the finance is around £6000. the car is unreliable as the previous owner did some DIY on it and not very well. So basically im at the end of my patience with it.
Its not really relevant what car i am looking to buy, just basically something more reliable and trustworthy. its not that the car is not big enough because it is but it is expensive to run. I can afford the monthly payments but cutting close to affording things like petrol and road tax.
thanks for your input guys

Pew_Pew_Pew_Lasers!

It really is simple. Sell it. Pay off the difference. Buy a cheap £1000 car, and run that. When it breaks, scrap it and buy another. Continue until you have savings to use on a newer, more reliable model.

motorguy

thescouselander wrote: »

I wouldn't be too concerned about finance over 5 years. As long as you put a good deposit down you can stay ahead of the depreciation and if anything happens you just sell the car and settle the loan.

Yes, totally agree.

I've my Passat TDI over a 5 year loan - i hope to keep it 10 years. I bought it brand new, so i know its going to be well maintained.

penrhyn

Sounds about right, you could try selling it privately for more though.
What car suggest:-

Suzuki SX4 Crossover 1.6 VVT GLX 4Grip 4WD 5dr 2006 (06) 40,000 miles Dealer £6,790 Private £6,035 Part exchange £5,800 Trade £5,435 Cost new £12,999