Finance deal coming to an end - need advice

brody77

Hi all.

My 3 year Renault Options finance is coming to an end soon, leaving me with the option to buy (final payment just shy of £4000) or return the car
(Megane Dynamique with all the trimmings).

I'd considered getting a top up loan to buy it, but Cahoot no longer do loans (I have the fixed rate one)

I'm not keen at all on buying another Renault, due to the many problems I had with Arnold Clark (can I name & shame here?) & the last time I spoke to them, they wanted me to give them that car back, keep paying the same a month (£226) and have a nice new shape Clio 1.2 BASE MODEL!!

The last time I checked the value, the car was around the 6.5k mark, and it has very low mileage.

My quandry is this;
Do I shop around to see about getting a loan (I'd need one to pay for the car AND clear my remaining cahoot - 11k total) OR
Give the car back, walk away & start over (I'd like a Ford Focus, but won't buy new again)

I appreciate any comments, thanks.

DealDrivers_company_representative

Finance deals can seem complex and people get hooked up on the APR percentage, but it is the mix of APR, monthly payment and final resudual value you need to look at....attractive-looking low APR deals have tragically low residuals built into them so you not only lose out at the end when the car has its final value for you to move on to the next car with, but your monthly payments aren't great either...but it's the low APR which attracts people as the sales gimmick.

A good example...genuinely..and not as an ad'(!), is one deal we have at the mo' on a 1.8 5dr Focus Zetec Climate inc metallic...becasue of the bonuses Ford have on 1.8 engines until end March our own APR of 7.9% gives a residual value of £5,264 and monthly payments of £195....so although the APR doesn't look mind-blowing, the overall deal is very good because there's a sensible GFV figure at the end. (This deal assumes a deposit of £1160).

So alwasy check out the whole deal..not just the APR....focus on the GFV figure at then end as that is the path into your next new car!

philhuff

My 3 year Renault Options finance is coming to an end soon, leaving me with the option to buy (final payment just shy of £4000) or return the car
(Megane Dynamique with all the trimmings) ... The last time I checked the value, the car was around the 6.5k mark, and it has very low mileage.

On the face of it, you should do what you can to get the £4k and pay off the car. Sell it for the £6.5k you say it's worth, pay off the £4k loan and, hey presto, you've banked £2.5k.

Once you've got that, take your pick on the future - that will be a nice deposit on another car, or live with the Renault for a year longer and stick the £2,712 worth of monthly payments you're no longer making into clearing your £11k debt.