Ford Credit help!

pvt

lawrie28 wrote: »

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

I presume that was directed at me rather than Sparksy?

Do you want to elaborate on why you think I haven't read the thread properly?

Cheers

pvt

lawrie28

pvt wrote: »

I presume that was directed at me rather than Sparksy?

Do you want to elaborate on why you think I haven't read the thread properly?

Cheers

pvt

Hey PVT,

I say this because the way you have written your post implies that the OP is looking to either buy a £4.5k car or an £11k car. This is not the case. He is looking to refinance a £3k balloon, but has onlyben offered an£11k loan bythe finance co, and been declined on the £3k loan, which is madness.

He is not trying to upgrade his car, he would like to keep the one he has, but thanks to the finance co is unable as they are playing silly games with him.

I agree that it is notthe best move for the OP to upgrade, and have advised him already to get on the phone to the finance co and sort it out so he can keep the current car.

At the very least he should sell it privately to makemore than the £3k balloon, because if he hands it back to Ford, under the terms of his origional agreement I doubt he will see any of the £1.5k equity that is in the vehicle.

pvt

lawrie28 wrote: »

Hey PVT,

I say this because the way you have written your post implies that the OP is looking to either buy a £4.5k car or an £11k car. This is not the case. He is looking to refinance a £3k balloon, but has onlyben offered an£11k loan bythe finance co, and been declined on the £3k loan, which is madness.

But his GF is trying to buy a £4k5 car. Off the finance company. For £3k. And the Finance Co's position isn't madness, they may feel that the money they have to lend for the higher value car is well secured against its value, whereas the £3k loan against the lower value car is not well enough covered by the future value of the older car.

I presnted the situation in a "different way" deliberately to try to stress the basic financial reality of the situation.

The other point that his GF needs to realise is that if she commits to the £11k loan she will be in the same position again in 3 years, needing to find another £3k ballon payment or hand the next car back as well.

That's why these finance deals are such a con. Unless you are able to meet the ballon payment when it is due, you end up having to lock yourself into another crap deal. But I suspect we both agree on that bit

sparksy30

pvt wrote: »

But his GF is trying to buy a £4k5 car. Off the finance company. For £3k. And the Finance Co's position isn't madness, they may feel that the money they have to lend for the higher value car is well secured against its value, whereas the £3k loan against the lower value car is not well enough covered by the future value of the older car.

I presnted the situation in a "different way" deliberately to try to stress the basic financial reality of the situation.

The other point that his GF needs to realise is that if she commits to the £11k loan she will be in the same position again in 3 years, needing to find another £3k ballon payment or hand the next car back as well.

That's why these finance deals are such a con. Unless you are able to meet the ballon payment when it is due, you end up having to lock yourself into another crap deal. But I suspect we both agree on that bit

thanks for your input in my situation, but the 11k deal won't have a balloon payment instead it will be spread over more years with the option to upgrade the car (if we wish to again) in a few years time

lawrie28

pvt wrote: »

But his GF is trying to buy a £4k5 car. Off the finance company. For £3k. And the Finance Co's position isn't madness, they may feel that the money they have to lend for the higher value car is well secured against its value, whereas the £3k loan against the lower value car is not well enough covered by the future value of the older car.

Disagree on this bit. on the £4.5k car, a loan of £3k pretty much covers all depreciation as it is a 1/3 deposit. The 11k loan gets next to no deposit(and its 11k repayment, not loan, which confuses things more) so even with the full £1.5k equity (which I don't think will carry on to this deal as the OP is handing back the first car) the deposit will hardly cover depreciation of the car over a short period, leaving the finance co very exposed.

The reason it is declined is simple - the Ford garage make more money frm selling a new car, so they have pushed this. I believe they told the OP that they couldn't refinance the first car, then pushed the finance through on the big deal, which was accepted. Then when customer complained, they put through the refinance deal, which was declined due to the large commitment from the first deal. THis forces the customer to take the new car.

I beleive that if the OP rang the finance co and told them to change the details on the larger application to the small deal it would be accepted.

At the very least the OP needs to find out what happens with the £1500 of equity in the car, as they could ust sell it and take the money.

I presnted the situation in a "different way" deliberately to try to stress the basic financial reality of the situation.

Appreciate that, and can see your way of thinking.



That's why these finance deals are such a con. Unless you are able to meet the ballon payment when it is due, you end up having to lock yourself into another crap deal. But I suspect we both agree on that bit

Yeppidty doo dah!

Tebheag

Just want to wish you good Luck ! Also is there no way you could raise the 3k credit card bank overdrafts etc !

sparksy30

All sorted now picking up the second hand car next week, I did try and get them to rewrite the new agreement but they wouldn't.
They would only do the finance for a second hand car over 4 years, which is better than nothing.
My girlfriend is getting a payrise in august which will cover the cost of the payments and no balloon at the end, so if we do end up in a similar predicament we won't have to worry about finding the lump sum at the end and hopefully her credit will return to normal in a few years.
I would like to thank lawrie28 and the other few people that have offered their advice it has really helped.