Buying another car advice

Shezz

Hi all Sorry for the long post
I have decided that I wanted to get a 4x4 not a big one, so I started looking aound Christmas, I looked at Rav 4 (liked) Honda CRV (wasn't that keen) but ended up putting a deposit on a Suzuki Vitara.

The garage are going to be buying my car from me, the offer they made on my car does not cover the finance still owing on it, but I did say that I would pay off the balance then start the other car off on a new finance agreement.

Tonight went to the garage (to take my settlement letter to show them) and they come back with the figures on the payments of my new car. and this is where I need advice.

1st question
The garage have told me that on the new finance agreement that they have to show the outstanding balance from my old car that I have to pay along with the amount that they are paying off, as proof to the finance company that my old finance for my old car will be paid off, otherwise the finance company will refuse me finance on a second car ??? as companies don't like you having finance on two cars (is this true),

2nd question
When they showed me the amount of finance they are asking for, (after I had paid off the excess due on my old finance) it is more than what I was paying for the new car, when I questioned this, I was told it was because of the VAT they had to add on to my repayment of the excess balance,

3rd quickie question.
I done a price comparison on a loan to cover the cost of the new car and seems it is a lot cheaper then to get a car loan from them, if I get a loan do I have to tell them it's for a car or can I say its for something else.


I just don't want to be mugged off I just don't see why I would have to pay vat on my payment.
And thankyou for reading this

bigjl

Biggest mistake i ever made when i was young was to change cars when in negative equity with the car you already own.

Without specifics it is almost impossible to give any other advice other than to consider waiting a while before changing you car.

The reason you can't have two cars in finance at the same time is usually an affordability issue.

There is no legal reason why you can't have more than one car on finance.

A mates sone used to rent out Taxis and he had ten cabs all on HP alongside his own cab and Impreza WRX and an almost new motorbike also on HP.

Shezz

Hi Thanks for the reply


I know what you mean about negative equity, but I will be paying that off as I do not want to put the excess onto my new car, btw I am buying a cheaper car from the one I have, but I have had nothing but trouble with my car since I brought it and it has gone back on more then one occasion, now the warranty is about to expire, I don't want to carry on taking it back and me having to pay, with this older car I will be getting the AA breakdown insurance for piece of mind.


About the finance affordability they have no idea what I can afford, they told me that it was not an option.

facade

Shezz wrote: »

2nd question
When they showed me the amount of finance they are asking for, (after I had paid off the excess due on my old finance) it is more than what I was paying for the new car, when I questioned this, I was told it was because of the VAT they had to add on to my repayment of the excess balance,

This is the part that doesn't seem right to me, but VAT rules are complicated.

Shezz

facade wrote: »

This is the part that doesn't seem right to me, but VAT rules are complicated.

with 20% extra on top of my payment don't suppose I would mind if it was a tenner or so, but when it goes into the 100s over the top of my payment, I am thinking twice