Car finance question

LewisR09

Hello, I have a car on finance. It is 1 month away from being 50% paid off (24/48months) and now the car is possibly worth more than what I owe (if i settle after 24months its £3300, car is worth 3k-4.5k). I applied for a loan from my bank to pay it off but was turned down.

I can afford the repayments etc and have never missed one on it. The problem I have is that ALL my money is being spent on running it (25mpg. £183 car repayments, £137 for 6month tax and £95 a month insurance).

Keeping up with repairs has crippled my savings and now I am in a position where the MOT could cost upward of £1000.
I cannot afford and being without a car is just not an option.

A while ago I realized that if I could change to a much smaller car I could save considerable amounts of money. A bit of shopping around and I can see I could get a C1 or 107 and only pay £20 tax a year and only £30 insurance a month, while getting 60mpg and paying less than £150 on the finance.

The question I have for the people here is what are my options? I have heard that some dealers may pay off the outstanding finance and take the car for themselves(as long as it would be profitable for them, which I believe it would be in this case.) while then setting me up finance for one of their cars.
Another option would be a VT. I have the option to hand the car back once 50% is paid off and call it quits with the finance company. However the 50% payment comes after the MOT so I would need to mot it first, wasting money I dont have. This also puts a VT against my credit file and I have heard this affecting people getting car finance again in the past.

If anyone has any experience with option 1 or any better Ideas I would much appreciate.

Thanks for any help.

forgotmyname

Have you checked the 50% point? Just because its 24/48 doesnt mean thats the halfway point.

A dealer wont value your car anywhere close to what you think its worth.

You have been turned down for a loan that will show on your credit file. The cheap finance deals may not apply to you.

LewisR09

It is in writing at 24 months, I just called it 50%. I have also taken into consideration those points mentioned and had already adjusted accordingly. Citroen themselves have lower spec versions of my car priced at 5k and over and although I am aware that they would not PAY out anything like that, its still a good profit on what I need from it. The real focus of that option is wether or not companies actually do this. I have not heard anything other than bits from forums like this one about companies doing it. I guess my best bet is just to go ask.

forgotmyname

All garages have to buy cars from somewhere, Private sellers sometimes, If its a car they know they can sell quickly or pickup so cheaply they cant really lose on it.

Dealers dream screen prices are for people with more money then sense. People who wouldnt dream of using a site like this.

How do you think the dealer offers people with £200 wrecks £1000 off in part exchange. The dealer knows he may have to pay to get rid of the part ex car, yet still has plenty of profit in the one they buy.

If it really only does 25mpg then i cant see it being on the dealers list of cars he really wants.

I remember one car show a couple had a merc ML500.. They paid £20k - £30k months before. One garage said they wouldnt want it, But if he really had to he would offer £7k, At that price he had to have a gamble.