Final Bulk Car payment query....??

helpwiththisplease

Hi All, hope you wonderful people out there can help?
In a few months we make a final bulk payment for our HP vehicle. Its been three years and it was one of those plans with 3 options at end.
1 Hand car back get new one, continue with monthly payments for new car. (don't want to do this, had enough)
2 Hand car back - pay if extra miles over the agreed mileage (we are thousands over the agreed mileage due to change in circumstances, so this would probably cost as more than option 3)
3 Pay end Balance as agreed at time of deal. (approx £3,500)

Question is... after the huge drop in car prices, we could probably get a better car for that price - SO can I negotiate as its barely worth that price now. I checked Auto Trader.
Its a 07 plate 307 Peugeot in very good nick except a high mileage for age (about 60K)
Or is it "better the devil you know" as its a great runner.
Hellllppppppp is there a way to point out that the Balance should now reflect the drop in car prices?????

Common_Sense_2

Drop in car prices has nothing to do with it - it's down to how many miles you've put on it and the make / model of the vehicle!

The reason you have an agreed annual mileage is so that the finance company can guarrantee the future value of the vehicle and so allow you to hand the vehicle back. It's not the finance company's fault that you have had a change in circumstances and not kept to your side of the agreement.

question - what is your excess mileage charge, what's the current mileage and what was the agreed annual mileage?

Some finance companies will allow you to refinance the balloon payment over another period - not sure if peugeot do (they used to years ago) - i assume you have finance with them.

Best to check with them.

(VT is out of the question due to the mileage over the agreed mileage)

chalkie99

The payments you have already made would have been based on this final payment. That was the price you agreed when you took the deal.

Imagine if everyone went back to the shops and said "I bought this 3 years ago but now I don't reckon it was worth it - Give me some money back"

Can't see it happening, sorry.

helpwiththisplease

Thanks for those (slightly harsh) replies.... was just wondering if there was maybe some hidden economy depreciation clause I could lean on. I knew the value would depreciate, but not as much as cars have generally) Obviously I knew it was a long shot, I'm not stupid, but who knows, there may be a loop somewhere someone knows about. I only meant that 3 years ago, my car, in its exact current state and mileage, would have been priced much higher in the "current market value" I don't mean its depreciated entirely due to wear and tear, its due to economy also... So it was an attractive deal back then, to end up with what I have, the final payment seemed small. But now generally car costs have dropped dramatically. But yup, just tough luck I guess. Worth a try though eh, see if there was some financial wizzkid who could find a gap in agreement.

lawrie28

Sorry no, you have to do one of the three options.

I would pay for it, you know the history and won't be stung for mileage, damage etc.

Hax

Just had a quick look on Autotrader and the cheapest 307s I could see from trade sellers, with up to 60,000 miles and up to the age of four years (so some 56 plate and some 07 plate) is £3990 for a 2007/56 plate 1.4s with just over 53,000 miles on the clock. Based on that, your balloon payment isn't particularly disproportionate.

Regardless of what the car is worth now, your finance was for the original price and current prices have no bearing on that.