Part Exchanging a car with outstanding finance?

smashingyour...

chokolat2 wrote: »

So what's the way out, what do you suggest?

Way out?

I can't understand how you got into this mess owing 6k on a car that cost 8k five years ago.

chokolat2

smashingyour... wrote: »

Way out?

I can't understand how you got into this mess owing 6k on a car that cost 8k five years ago.

I didnt buy it 5 years ago. I bought it last year for 7995, witha mileage of 8000, so it was good as new, and still is.

GAZ237

Depending on your financial status, you should be able to get a bank loan for sub 5%

GAZ237

chokolat2 wrote: »

I didnt buy it 5 years ago. I bought it last year for 7995, witha mileage of 8000, so it was good as new, and still is.

Jesus Christ. You bought a four year old Fiesta for £7995.

Now your buying a 3 year old one for £6998.

So £2595 loss in 12 months on your old car.:eek:

TradePro

smashingyour... wrote: »

You bought a car for 7k and they gave you 5400 for a five year old fiesta. Now you owe them 9.7k.

Were you on that programme last night?

Here we go again...

OP has £600 negative equity, car they are looking to buy is £7k (for round figures.

Borrowing £7600 over FIVE YEARS and repaying £9700 isn't so terrible, around £35 per month interest, what's wrong with that?

Have you ever bought a car?

TradePro

GAZ237 wrote: »

Depending on your financial status, you should be able to get a bank loan for sub 5%

Unlikely Gaz, maybe an APR of 6.9 rather than 8.8 which will save the OP...are you ready for this...£6 per month.

I think everyone needs to calm down

chokolat2

Well we know we will be loosing out either way, but this car is just sitting in the garage now, and no one drives it, while we still make the monthly payments.
I can only drive automatic, but out Fiesta now is manual, therefore it makes sense to part exchange to automatic, but what is the best way to do this?
We cant sell privately, as it hire purchase with outstanding debt, so the only option really is to go to a dealer?

GAZ237

TradePro wrote: »

Unlikely Gaz, maybe an APR of 6.9 rather than 8.8 which will save the OP...are you ready for this...£6 per month.

I think everyone needs to calm down

Or £360 over the 60 months of the agreement.

TradePro

GAZ237 wrote: »

So £2595 loss in 12 months on your old car.:eek:

Most of this is the difference between 'trade' and 'retail', it will always be expensive to trade in a dealer bought car after 12 months.

TradePro

GAZ237 wrote: »

Or £360 over the 60 months of the agreement.

Yeah, £70 a year, not terrible when you consider the plus sides to vehicle finance over a personal loan. For starters, if the OP decided to pay off early, they would save plenty in reduced interest compared to a loan.