Bmw mini finance rejection

motorguy

BenL wrote: »

Hand it back and walk away.

I was going to say "sell it and use the money to pay the finance off and keep the extra" but as I could buy one for £5000 http://www.ebay.co.uk/itm/2008-MINI-ONE-SILVER-/271112053729?pt=Automobiles_UK&hash=item3f1f89a3e1 the car is not worth what you owe so handing it back to BMW is the best thing to do and they can have the problem.

Ben

That one is a year older than the one the O/P is talking about and is CAT D, so hardly comparing like with like?

motorguy

IAN1 wrote: »

Hi,

My partner has had 3 cars on BMW Mini Finance. The current one is due for settlement, re-finance or return. The outstanding balance if £6100 for a Mini one 58 plate. Unfortunately she has been rejected for credit on a new one and also re-financing this current model.


Therefore the option is handing the car back or trying to find a loan to cover this outstanding balance. Credit is poor as well as mine so obtaining another loan is very unlikely. Plus there isnt enough cash available to buy a cheap car. She really needs a car as she travels in and out of london for work.

Dilemma. Thoughts would be much appreciated?

Choices are -

* hand the car back and look out for something very cheap.

* Try to sell the car for more than you owe.

* Try webuyanycar.com and their ilk and see if they will offer more than you owe.

* Contact your local MINI dealers and ask to speak to their car buyer and see what he offers.

On the plus side, you'll be surprised what you can pick up for less than £1,000 and you're likely to get a lot more satisfaction knowing you've no finance to worry about.

motorguy

vickwill wrote: »

How about a 0% leasing deal (new car every three years) if you have a job, can prove affordability wheels4sure dot com will give you a brand new car. Try them, breath of fresh air. What you see is what you get. Good luck.

Reported as SPAM

gilbert_and_sullivan

Some good replies here, and i concur with the gist of most.

The economy is only going one way and thats downhill for a very long time, despite us officially coming out of recession earlier in the year (news night was it), so get rid of every bit of debt possible and ride the coming storm.

Plenty of unfashionable cars far better in all respects to be had and cheap as chips.

forgotmyname

Another spam post by vickwill.

motorguy

vickwill wrote: »

How about a 0% leasing deal (new car every three years) if you have a job, can prove affordability wheels4sure dot com will give you a brand new car. Try them, breath of fresh air. What you see is what you get. Good luck.

Leasing is NOT 0%.

You are grossly misrepresenting wheels4sure.

The one example the site has of its rates show a Hyundai i30 for £399 a month. This is TWICE the rate of the most competitive quotes. The organisation simply targets those with poor credit ratings then ties them in to an expensive lease deal.

The 'financing' side of wheels4sure - buy2letcars.com is offering investors a 'guaranteed' return of 11% per year - they're certainly not making that on a depreciating asset, so its clearly in interest charges.

steve-L

IAN1 wrote: »

Thanks for your opinions. Appreciated. In the long run it doesnt make sense getting a crippling high interest loan for the sake of a car of £6100 that isnt even worth that. I guess thats how Mini and other dealers tie people in. As if the credit was accepted for the new mini we would have taken it. Maybe this is a blessing in disguise getting rejected.

I would view the blessing in disguise.

Even without the interest it seems that a nearly new mini is pushing your finances. Assuming you got another 3 years what would it be worth at the end? (Probably 3k or less) ... so you are loosing another 1000/yr in depreciation.

(Autotrader shows 2005 Mini's at
£2100: 2005 (55 reg)Hatchback,37,600 miles,Automatic,1.6LPetrol)


When I PX'd for my old Honda I had a P Reg 306 wih 40k. Nothing wrong with it except the alarm was a bit iffy and drained the battery if left on (so you had to use a key to lock) ....
The main reason to change was arrival of a baby... It hadn't cost me much over the years I'd had it (new exhaust at one point) .... and it was the GTi so not the most economical engine....

Was it not for the baby I'd still be running it now.
I got £550 for the car....

There really is plenty under a grand that is perfectly serviceable if you don't worry about keeping up with the Jones's.

Quite honestly I think if you can't afford to buy it then you can't afford to lease it. (or leasing it is just crippling you saving)
You may have been keeping up with the payments but had you instead bought a £1000 car and swapped/traded up 3 times you would probably be in the position to buy a 2008 Mini outright by now....

You might actually, once you are in that position suddenly realise that that hard saved money is best spent elsewhere?

Look at it this way.... what would you do if you had £6100 in the bank and a working 2002 Fiesta or Corsa?
Would you blow the lot to get a 2008 Mini?
Would you Trade in the 2002 for a 2005 and add £2000 of your savings?
Would you pay off credit cards/debt/other?

I got a break at one point in life. Going from Financially destitute to quite well off in one jump. (I got an expat position in Africa that paid 4x my old salary, tax free and with a car and housing thrown in). I couldn't spend all the money I earned so I saved some....

Once I saved some it completely changed the way I look at money...
I also have a few friends who were born with money... (some of them are nice people)....
What I came to realise is that people who come from families with 'spare money' at the end of the month treat it completely differently.

Most of us get sucked into a cycle where we expect our account levelled each month, the unfortunate have it levelled and a bit more. If you save £3000 a month at the end of the year you have £36,000 ... if you save £50 a month you have £600.

The problem I had when broke was regardless of how hard I saved I'd only save £50 a month, enough for a holiday.... and once accident in the year could lose me the whole savings!
I could deprive myself and still have £600 for a holiday at the end of the year.

Hence I couldn't see the point of saving so I'd instead splurge on things that made my life better for a short time..... half the time I was paying overdraft charges, interest etc.
Once in credit I have ever since managed to keep at least 1 months salary in my account. This allowed me to save more and more... if I needed work clothes and they were on sale I could buy 6.... if I got a unexpected bill I could pay without overdraft.... etc. etc.


You seem to have the opportunity to save £200/month and save £2400 in a year.... and used wisely that could cut a lot of other expenses....

Just my 2c.... It's your money... you worked for it and earned it...

Strider590

Everything I have to say, has already been said......

almillar

If the car's taxed make sure you get a refund on it before handing it back, to go towards buying a Micra or something. Or I'm sure the garage has told you to try selling privately for more money. Advertise it for £7,000 (really clean inside and out and well described) and sell it for anything above £6,100 and you're in 'profit'. I've no idea how much your car is worth BTW.

IAN1

The Mini has now been returned. An expensive lesson leant. £13k spent over 6 years on 2 cars and nothing to show for it and having to get another car. Certainly will be going for a cheap car now. Until we are in a very comfortable position where it can be a luxury I will not be getting involved in any sort of HP agreement again. It basically is a form of leasing really, you never own the vehicle unless you can pay the lumpsome at the end. Any way you live and learn. Thanks for your advice all.