Car finance - circumstances have changed

datsun770

Hi everyone, I have seen a recent post similar to mine, but mine is slightly different.

About 7 weeks ago I bought a Mitsubishi lancer ralliart, from Arnold Clark. The car was priced at 10,995. I managed to buy it for 10,495, traded my old 5 series against it for 1400 and paid a 200 deposit.

The car was really appealing. Everything I had wanted in a car for a long time, it was my 30th birthday present to myself, done 15000 miles and I'm pristine condition. Trouble was it does 22mpg but as I was car sharing to work and my wife's car was going to be the shopping/ trip car I wasn't phased, and decided that I should treat myself as you only live once. For two months I have been spending 180 a month on fuel which is about 80 a month more than in my BMW.

I financed the balance over 4 years with moto novo. And the payments are manageable at 185. Despite the fuel being high, I was ok with it.

In 7 short weeks things have changed. I can no longer car share and I am facing a bill of 300-400 a month on fuel. I simply can't afford this.

What are my options? Can I trade the car in against another car given that I got the car at a reduction and put 1600 total into deal and have also made 2 monthly instalments?

Or will I have to spend more?

I have seen a newer BMW than the one I had at the garage I bought my car at for 9,000. Its two years older than my new car and done 4x the mileage, but returns 50% more mpg. Given I paid 10,495 less my 1600 and two monthly payments, what are my chances if the garage sorting this mess out and me not being out of pocket?

What would you do?

Regards

Scott

CKhalvashi

Ouch!

I'm also a petrolhead, and cover about 1500 miles a week, and I was actually using an SC430 until petrol prices went stupid (2002 model, bought in '06 with 22k on it and sold it in '10 with with 426k!!!). It ended up being replaced with a '10' 535d M Sport Estate (which was faster than an M5) and then a '62' Jag Sportbrake (3.0d 275ps Portfolio, uprated to 370!) The latter two nowhere near as nice, I know, but I have kids.

There are two options here, the first is to find another liftshare (click here), or to sell the car, and knowing your position, I think I know which you prefer! The link is just one of several websites of its kind.

CK

Mara69

Boys and their expensive toys. Didn't do your research, did you? There is little chance of the garage sorting out your mess and not leaving you out of pocket. Your try and sell the car on, but with finance no one in their right mind will touch it. You might be able to trade it in though, but I suspect you will end up very much out of pocket.

BugsyBrowne

CKhalvashi wrote: »

Ouch!

I'm also a petrolhead, and cover about 1500 miles a week, and I was actually using an SC430 until petrol prices went stupid (2002 model, bought in '06 with 22k on it and sold it in '10 with with 426k!!!). It ended up being replaced with a '10' 535d M Sport Estate (which was faster than an M5) and then a '62' Jag Sportbrake (3.0d 275ps Portfolio, uprated to 370!) The latter two nowhere near as nice, I know, but I have kids.

There are two options here, the first is to find another liftshare (click here), or to sell the car, and knowing your position, I think I know which you prefer! The link is just one of several websites of its kind.

CK

Don't get me started on the 535d vs M5.

victoria797

BugsyBrowne wrote: »

Don't get me started on the 535d vs M5.

Bugsy your thoughts on Fiat 500 vs Alfa romeo Mito?

datsun770

Mara I did indeed. I calculated that I could afford it easily. I am a cop and been re posted to another more rural office, means I can't car share with anyone else due to the shifts as there is nobody else coming from my neck of the woods. My thread specifically asks for help, not negative opinion, quite why you felt the need to post a response is beyond me.

To everyone else, thanks for taking time to respond. I had a 525d before with 246k on the clock, wanted something more modern, with a little kick. I understood the implications of the decision. Weighing it up, it was against cars 3 or even 4 years older that we're BMW, Audi, etc that had 60k+ on the clock.

Silly me for picking the car that is only 2 years old, with 15k on the clock still under warranty, for the same money. Offsetting that against the poor mpg, I was winning, as these are rare cars.


That was until I got moved.

So what are my options with the car itself and or the finance. I feel I want to be armed before I call the finance company.

SeanG79

Have a word with the original dealer and see if he will take it back for the similar money to what you paid on condition you take another one of his vehicles...The £500 discount is pretty standard as not many people pay the forecourt asking price on any vehicle.

You will definitely lose out on the credit facility (usually ±£150-200 depending on lender) and completion fee (usually ±£80-150 depending on lender) on the existing finance and will be charged 58 days interest as a penalty for settling early as well as the payments already made.

The dealer may be able to help you with the bank also as some lenders will offer a marginally better settlement figure on condition of getting new business.

iolanthe07

Are you sure the Lancer isn't faulty? I had one some years ago (not the ralliant) and got a lot more than 22 mpg (about 34 IIRC).

superbigal36

datsun770 wrote: »

So what are my options with the car itself and or the finance. I feel I want to be armed before I call the finance company.

Yes a Copper with a Gun might stand a decent chance with the finance company.

Herzlos

Can you LPG convert the Lancer? It probably won't cost much more than you'd lose from the trade in, and would cut your fuel bill by about half..

datsun770

lpg in a turbo car not an option due to specialist valve seats. also costs about 2k . I'll speak to dealer. they happen t have a 3 series in stock at 9k might be a deal possible. if not I'll have to live with it for a while and cut costs elsehwere. any definitive advice appreciated. found motor novo to be very stern and they seemed more concerned about me not paying the finance which as stated is not the problem.