Car finance

eddie_sparrow

Nope the person she took the loan out for has told her that it was six days out of insurance because he could pay the insurance premium for that month !!! so no pay out she is still left with the debt..

BeenThroughItAll

eddie_sparrow wrote: »

Nope the person she took the loan out for has told her that it was six days out of insurance because he could pay the insurance premium for that month !!! so no pay out she is still left with the debt..

So basically, he's sold it to some mug who didn't HPI it at a knockdown price, pocketed the cash, and is telling everyone it's been stolen.


Sounds like a nice bloke.

BeenThroughItAll

BeenThroughItAll wrote: »

So basically, he's sold it to some mug who didn't HPI it at a knockdown price, pocketed the cash, and is telling everyone it's been stolen.


Sounds like a nice bloke.

Is this also the same situation that happened 'two years ago' last year when you first posted about it?

Brock_and_Roll

I really don't see what the issue is here. The bank was clearly stupid to accept someone as a guarantor with no job, income or assets and ultimately it will be their loss. She may have signed it, but if she has not got the money, she can't pay it back.

The mother-in-law, given her situation, is clearly insolvent (i.e. unable to pay the debt) and should go consider bankruptcy. Someone really needs to put her mind at rest that she is going to be turfed out of her house or dragged before the courts - the reality is that he life will carry on a normal.

Apples2

Clippity clop

jhenan

Hi, just wanted some help regarding a car loan I am due to get (not too familiar with this, so please bear with me):
Car cost: 54 692
Deposit : 15 000
Amount to finance: 39 692

What would be the best way to pay this off, HP or PCP, deals so far:

Deal 1: PCP over 4 years 613.78 x 48 and balloon 16125
Fees: 295 + 149
TOTAL to PAY: 61 030.44

Deal 2: HP over 5 years 760 x 60
Fees: 149
TOTAL to PAY: 60 749

Deal 3: PCP over 3 years 685 x 36 and balloon 19925
Fees: 295 + 149
TOTAL to PAY: 60 029

They have quoted a flat rate and APR for interest and can make sense of the figures over using the flat rate. Now, I have asked for how much it would cost if I paid early in the first 2 deals, say in 3 years to see how much cheaper I would get it.

For Deal 1: Settlement in 3 years would be 26 750
I dont understand, total cost would be
(613.78 x 36) + 26750 + 15000(deposit) = 63 846.08 More expensive than if I did this over 4 year?!

For Deal 2: Settlement in 3 years would be 17 400, thus total cost:
(760 x 36) + 17400 + 15000(deposit) = 59 760 - not much cheaper than over 5 years

They said you can't work out the final repayment from just using flat rate as the interest incurred changes, more at the start as you borrow 40 000 and then less towards the end as you pay off capital in first 3 years. They said this is true for all loans now. Is this true?

So could I effectively reduce my interest charges by overpaying in first 2 years? I am thinking of paying in 3 years, but don't want a straight HP deal (4 years is around 950 a month) - rather have a lower monthly rate and then give myself the choice.

I don't want them to say after I pad big amounts in my first year that it does not matter, your interest charges are the same!! Any help would be greatly appreciated

Thank you

J

imoneyop

The best thing to do would by a car you can actually afford rather than pay 60 grand for a car that will be worth a fraction of that when you finish paying for it.

jhenan

Hi,

Thank you for your comment, I appreciate that will be the case in the future, but I am not looking to sell the car later, will want to keep it.

Its value is around the 60000 mark but with discounts I got it down to 54962. I would pay the 60000 if I could now, but can't so am going down the finance route.

I know its not a sensible life choice but I am young and confident I can repay this amount. I just want to make sure I make a sensible decision about the finance I choose - do you have any suggestions on the figures I quoted?

Thanks

J