Porsche - Voluntary Termination??

j9sht

Looking for some well placed advice please...

I've got a Porsche 997 on a HP agreement, had it for the last 34 months, only two payments to go. All payments up to date and the car is in good condition, fully serviced on time and current MOT.

The final baloon settlement is £21,600, the problem lies in off loading the car. The local Porsche dealer has offered me £22,000 in part-ex against a newer 997 so on the face of it all is well!

The problem is i don't want another Porsche and the best trade-in/sale offer i can get elsewhere is £19,000.

So do i Voluntary Terminate the agreement now with only two payment left? It says i can exercise this option in my documents but i do not want to negatively affect my credit rating which is good at present, but nor do i want to pay Porsche circa £2500 more than the car is currently worth!!!

I've read that lots of people have VT'd when having only paid 50% of the payments leaving the dealer/finance company well out of pocket, does the fact that i have repaid 95% of the finance mean future lenders may not look so unfavourably at me should i wish to finance future vehicles??

HELP please.....:doh:

jaydeeuk1

Forget trade in, its cost to change you need to look at. I can give you £25k trade in value, but if the car I'm flogging is £7k over its true value it isn't worth it. The £19k trade in could be used as a way of getting sticker price down.

j9sht

jaydeeuk1 wrote: »

Forget trade in, its cost to change you need to look at. I can give you £25k trade in value, but if the car I'm flogging is £7k over its true value it isn't worth it. The £19k trade in could be used as a way of getting sticker price down.

Cost to change is primarily my problem.

I don’t want another Porsche so need to sell/trade the car, the new car I have seen is on a special finance deal and I have secured the very best deal I can get on it, however the best price the dealer can offer me for the Porsche is £19,000. I am sure they could offer me £21,600 but this would just artificially inflate the cost of the new car.

So basically it is going to cost me £2,600 just to hand the car back to Porsche.

Does anybody have experience of trying to negotiate a lower settlement figure at this late stage of a HP agreement or experience of VT'ing which has not negatively affected their credit rating?

LandyAndy

I've VT'd a car. didn't affect my ability to get credit immediately after for two more cars.

Have you paid more than 50% of the amount borrowed (including the balloon?)

I think I'd made 33/36 payments and had just passed 50%.

Biketrials08

let me understand the situation, after the balloon payment the car becomes yours 100%? Assuming this is the case the next question I have is what year and version is your 997, if it was an early Carrera 2 then you should still achieve more than offered in a private sale ( I appreciate the time and effort involved in selling privately maybe off putting for you), if you have a later car, post 2009 doing away with RMS issues, then the value would be vastly more than offered. Priced correctly you could liquidate the car very quickly, if you don't want to do it yourself you could do a commissioned sale with a dealer selling it on your behalf. Of course this does require you to stump up the capital to cover the final payment.

motorguy

j9sht wrote: »

Looking for some well placed advice please...

I've got a Porsche 997 on a HP agreement, had it for the last 34 months, only two payments to go. All payments up to date and the car is in good condition, fully serviced on time and current MOT.

The final baloon settlement is £21,600, the problem lies in off loading the car. The local Porsche dealer has offered me £22,000 in part-ex against a newer 997 so on the face of it all is well!

The problem is i don't want another Porsche and the best trade-in/sale offer i can get elsewhere is £19,000.

So do i Voluntary Terminate the agreement now with only two payment left? It says i can exercise this option in my documents but i do not want to negatively affect my credit rating which is good at present, but nor do i want to pay Porsche circa £2500 more than the car is currently worth!!!

I've read that lots of people have VT'd when having only paid 50% of the payments leaving the dealer/finance company well out of pocket, does the fact that i have repaid 95% of the finance mean future lenders may not look so unfavourably at me should i wish to finance future vehicles??

HELP please.....:doh:

Why not just wait the two months and return it once the contract finishes - returning the car being an option at that point anyway?

OR are you ready to change now?

If so, then i'd VT it. It doesnt affect your credit history and it doesnt impact the dealer at all. The finance company wont lose money either as they've already got interest charges out of you to cover any shortfall.

My wife did this. Her Z4 was worth maybe £16K but the final payment was £19,000. She was a couple of months off the final installment so just did a VT on the car.

k3lvc

Biketrials08 wrote: »

Assuming this is the case the next question I have is what year and version is your 997, if it was an early Carrera 2 then you should still achieve more than offered in a private sale ( I appreciate the time and effort involved in selling privately maybe off putting for you), if you have a later car, post 2009 doing away with RMS issues, then the value would be vastly more than offered

A quick nosey check suggests it's an April '07 car

j9sht

k3lvc wrote: »

A quick nosey check suggests it's an April '07 car

Correct :T

j9sht

motorguy wrote: »

Why not just wait the two months and return it once the contract finishes - returning the car being an option at that point anyway?

It not a PCP type agreement with a hand back option, straight HP so the balloon must be paid.

I'm going to contact the finance company and be straight with them, state the cars current market value versus the final balloon and ask them if they are willing to accept a lower final settlement in line with current market value.

If they are not prepared to budge then I will inform them Iam going to voluntary terminate in accordance with my rights under the agreement.

The way i see it is that if they agree to a lower settlment i will pay the final two payments and the lower ballon, if they dont they loose out on the last two payments and are left with a car that is valued according to the market at less than the final baloon.

I have already agreed a deal on a new car and have managedto negotiate an ultra-competitive price and 0% finance, but this is on the basis of no trade in. Hence my need to just sell or off load the Porsche, and clearly I would rather do this without paying Porsche finance an extra £2600 for the privilege!!

Biketrials08

j9sht, Carrera 2 Manual, right? What mileage do you have on it? 19k trade in - they don't want you any additional favours do they.

j9sht

Biketrials08 wrote: »

j9sht, Carrera 2 Manual, right? What mileage do you have on it? 19k trade in - they don't want you any additional favours do they.

Yes correct, 63K miles FPSH and still in Porsche warranty!

The problem is that I've negotiated a blinder of a deal with BMW on a new M3 but this is based on no trade in.

All the other local stealers are low bidding me as I'm just trying to off load the Porsche without any reciprocal sale, and as the BMW arrives in 2 weeks don't have time for private sale.:mad: This is the frustrating part as I can't find a comparable car to mine for under £24500 and my car looks a dam site more appealing than some listed on auto trader/piston heads!