Ford Credit help!

sparksy30

Culex wrote: »

I was just pointing out why the deal was apparently still open.

sorry didn't mean to snap at you but other people on here have been less than helpful

sparksy30

jonjamie1970 wrote: »

For gods sake please use punctuation, this is difficult to read and not helping you with your requests. :mad:

the payment is now due.
And I suppose it's my girlfriends fault the company she worked for got sold to the europeans making her redundent, inadvertantly affecting her credit, as she sacrificed other creditors just to make sure ford were paid in full, even when we couldn't afford it.
When she took the deal she had worked for her company for 15 years so couldn't predict the future, and the deal seemed the best one at the time.
I would say a car is brand new as long as it is sitting on the forcourt, as everyone knows the minute you drive it away you lose a percentage of the cars value with anything upto 40% in the first year

is that better for you

CH27

sparksy30 wrote: »

the payment is now due.
And I suppose it's my girlfriends fault the company she worked for got sold to the europeans making her redundent, inadvertantly affecting her credit, as she sacrificed other creditors just to make sure ford were paid in full, even when we couldn't afford it.
When she took the deal she had worked for her company for 15 years so couldn't predict the future, and the deal seemed the best one at the time.
I would say a car is brand new as long as it is sitting on the forcourt, as everyone knows the minute you drive it away you lose a percentage of the cars value with anything upto 40% in the first year

is that better for you

You know !!!! happens. It's how you deal with it that matters.

lawrie28

sparksy30 wrote: »

i have just spoken to the dealer and things are looking positive i will be going there at the weekend apparently the 11k offer is still viable in which case we will take the second hand car

Do you want to be £11k more in debt?
Is the problem going to repeat itself with this car?
If you knwo that the current car is worth more than the balloon, why don't you sell it privately (ebay) and make money on it?


If I were you I woudl ring ford credit and ask to speak to their applications team (or whatever they call it). Tell them you have an application through a garage and want to check the details on it. Make sure it is approved and for the amounts they should be.
Then ask them if the it is possible for this application to be changed to cover the £3k refinance on he other car. As it is approved for £11k, then it should approve for the lwoer amount, it may need to go through some kind of underwrite as a refinance may trigger their system, rather than a new purchase.

If you like your current car, why saddle yourselves with more debt?

I can't recall if asked, but has our g/f tried for a loan with her bank?

chopper78

If the dealer is offering you £4500 for the current car, and £3000 is due to Ford Credit as the baloon payment, then they should offer you the part exchange towards the replacement car which will give you £1500.

The £150 monthly payment compared to £209 - did they acheive this simply by increasing the number of years to 6? Financing a car over six years is a recipe for negative equity right until the last few payments. Back in 1999 I bought a two year old Ford Escort, £150 a month for five years. (Add on £30 a month for PPI that they told me I had to take, but I have long since lost the details of the finance company so cannot reclaim it). Even four years later when I came to trade the car in, I still owed more on the finance than the car was worth.

(In that event, I actually had to persuade the dealer to increase the cost of the new car in order to up the offer on the Escort so that the Part Exchange offer was the same as the settlement figure on the finance, just to be rid of the car. Yes, I know it was HP and I could have just walked away, but the car was in a condition which would have risked the finance company sending me a bill for some repairs).

sparksy30

lawrie28 wrote: »

Do you want to be £11k more in debt?
Is the problem going to repeat itself with this car?
If you knwo that the current car is worth more than the balloon, why don't you sell it privately (ebay) and make money on it?


If I were you I woudl ring ford credit and ask to speak to their applications team (or whatever they call it). Tell them you have an application through a garage and want to check the details on it. Make sure it is approved and for the amounts they should be.
Then ask them if the it is possible for this application to be changed to cover the £3k refinance on he other car. As it is approved for £11k, then it should approve for the lwoer amount, it may need to go through some kind of underwrite as a refinance may trigger their system, rather than a new purchase.
If you like your current car, why saddle yourselves with more debt?

I can't recall if asked, but has our g/f tried for a loan with her bank?

the deal is spread over 5 years with no balloon payment so we shouldn't have the same problem as now.
As for a loan from the bank that's a no go as her credit is shot to bits.
She has spoken to ford credit and they have confirmed she was accepted for the 11k finance and declined for the 3k.
I think someone said on here before that is the reason why they declined the 3k as ford were still showing a pass for the 11k finance.
Thanks for all your help though i'm really grateful.

pvt

Sparksy,

What you currently have is a car that you estimate is worth about £4k5, and a £3k loan. Your equity here is about £1,500.

You seem to be struggling to understand that to own a £4k5 car when you have just £1k5 of equity will require you to borrow £3k from somewhere. If you can't borrow it, then you cannot afford that car. Simples!

You've said you are rather hard up at the moment.

So I am perlexed that your chosen resolution to the issue is to upgrade from a £4k5 car to a much more expensive (presumably newer one) car and take on an £11k loan.

You came to the forum looking for help. The best advice I can give is, if you are hard up don't upgrade your car to a more expensive one!

Not trying to be unhelpful, just trying to get you to take a reality check and see the financial situation for what it is!

Good luck

Hax

sparksy30 wrote: »

the deal is spread over 5 years with no balloon payment

You say that the total amount repayable for the finance is £11K

At £150/month, that works out at 73 months (or just over six years)

Something's not adding up here...

lawrie28

pvt wrote: »

Sparksy,

What you currently have is a car that you estimate is worth about £4k5, and a £3k loan. Your equity here is about £1,500.

You seem to be struggling to understand that to own a £4k5 car when you have just £1k5 of equity will require you to borrow £3k from somewhere. If you can't borrow it, then you cannot afford that car. Simples!

You've said you are rather hard up at the moment.

So I am perlexed that your chosen resolution to the issue is to upgrade from a £4k5 car to a much more expensive (presumably newer one) car and take on an £11k loan.

You came to the forum looking for help. The best advice I can give is, if you are hard up don't upgrade your car to a more expensive one!

Not trying to be unhelpful, just trying to get you to take a reality check and see the financial situation for what it is!

Good luck

Sorry Sparksy, don't think you've read the thread properly

lawrie28

sparksy30 wrote: »

the deal is spread over 5 years with no balloon payment so we shouldn't have the same problem as now.
As for a loan from the bank that's a no go as her credit is shot to bits.
She has spoken to ford credit and they have confirmed she was accepted for the 11k finance and declined for the 3k.
I think someone said on here before that is the reason why they declined the 3k as ford were still showing a pass for the 11k finance.
Thanks for all your help though i'm really grateful.

With all the underwriting systems I have worked with, it would be possible to change the amount on the accepted deal to a lower figure and still keep an approval, so in your scenario, you would be able to ask Ford Credit to change the figures on this application to the onesfor your current refinnace need.

If you did sell the car privately you shoudl be able to get the purchaser to make a payment direclty to the finance co, leaving you with a nice profit.