car on finance, costing too much need a newer cheaper car on finance - what to do?

steveo999

Not sure what to do

basiaclly im a year into a 4 year finance on my existing car, basically i want to replace the car for something cheaper (again I would ahve to finance this) becuase i need something cheaper to run and need cheaper monthly payments.

The remainder of the existing finance is roughly what the car is worth so I could sell it pay it off then get a new fiance deal.

Is there any other less hassle options anyoen could suggest?

Hintza

Depending on the type of deal you are on, stick it out until you have paid half then hand it back. Ensure it is in pristine condition and you have stuck to any mileage, servicing agreements etc.

Anything else will probably cost you more in the long run.

forgotmyname

Another option is maybe use the car less, Travel outside rush hour times and try and average a
better mpg than you would normally manage.

[Deleted User]

Buy a cheap second hand car which you can afford outright.

Never understood all this spending ££££ on car finance just to keep up with the Joneses.

Kilty_2

Deleted_User wrote: »

Never understood all this spending ££££ on car finance just to keep up with the Joneses.

Depends, surely?

If I sold my 4 year old car I could be driving a 11 plate Fiat Panda and still have money left each month after the finance is paid. Seriously thinking about it :rotfl:

Apples2

Deleted_User wrote: »

Never understood all this spending ££££ on car finance just to keep up with the Joneses.

Kilty wrote: »

If I sold my 4 year old car I could be driving a 11 plate Fiat Panda

You aren't going to be keeping up with ANYONE in a Panda :j

Kilty_2

Apples2 wrote: »

You aren't going to be keeping up with ANYONE in a Panda :j

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

:T:T:T:T

gilbert_and_sullivan

Agree with one of the above.

Try to sell if it will clear your finance, or indeed hand back if you have the type of finanace, then go bangernomics.

Really bad times are only just starting, and interest rates are only going one way.

Buy cheap old unfashionable motors and ride the coming storm out., learn how to fix 'em yourself if you don't already.

Hintza

Apples2 wrote: »

You aren't going to be keeping up with ANYONE in a Panda :j

You would be surprised.

Apples2

Hintza wrote: »

You would be surprised.

I'll give the OP the benefit of the doubt and assume he is getting a sensible (normal) Punto and not one of these :rotfl:

bigjl

steveo999 wrote: »

Not sure what to do

basiaclly im a year into a 4 year finance on my existing car, basically i want to replace the car for something cheaper (again I would ahve to finance this) becuase i need something cheaper to run and need cheaper monthly payments.

The remainder of the existing finance is roughly what the car is worth so I could sell it pay it off then get a new fiance deal.

Is there any other less hassle options anyoen could suggest?

Almost everybody has been in your situation, including me when I was in my early twenties.

You have financed the dealers profit margin, if you trade in you wil be financing on the next car, the finance companies profit, the dealer profit on your car that you trade in and the profit that the dealer makes on the car you then buy.

If you are really in a financial mess then sell the car and get a banger.

Otherwise I advise you to stick with it for another year at least, don't surrender the car as even though it doesn't directly affect your credit rating, it will be logged as a voluntary reclamation and will have a detrimantal effect on your ability to get more car finance, finance compnanies like to be the only ones to use legal get outs, they get really upset if you do so.

You need to go to a dealer, sort out a possible deal, then go home to think it over, include everything that you will save, fuel insurance etc, if you bought this cheaper car, then do the same keeping your own car.

Then look at the end result, are you actually better off by trading in, if you are then go for it.

Though I suspect that unless you have a performance or boy racer type car you will be better sticking with what you have.