advice on car finance please

headoverheels

Hi there im new so please excuse me if ive posted in wrong place????
I have a car just now and want to get new car
I owe approx 11k on finance and dealer offering just 6.5 for car. its on hp i have car and im looking to get to a pcp as i used to do this and like idea of handing car back after approx 2 yr and getting new car,
but to do this this time basically im having to add around 3.5k to new car so car costing 13 is costing me nearly £17k! ( golf )
dealer saying this is best way to get me away from carrying this neg equity from car to car and i dont have spare cash to pay off anything so stuck with what to do. need to get rid of car its starting to cost money and i hate it !!!
so basically would i be better looking at cheaper car for 2 yrs or is there any other way??? had my car 2 yr so doubt option of handing back to finance etc is available.
crikeys long winded question...hope someone got magic wand lol:o:(

parahandy

How old is your current car?

flashg67

Is the current car on HP? haved you looked at a voluntary termination - if you've paid enough off, it could be possible - read the small print of your current finance contract.

Otherwise, you're just deferring the problem by adding the difference to a new loan and paying interest on it again?

You probably know the best solution is to put up with your current car until you've paid it all off, or at least reduced the negative equity...

Nodding_Donkey

If it is a true HP deal and you have made half the payments you can just hand the car back as a voluntary termination and owe nothing further.

jimjames

Do you need a new car? Would it be better to pay off the current car first so you're not being hit again by depreciation?

gilbert_and_sullivan

There is no magic answer, you haven't got any money, indeed you owe lots, and you want to get another new car.

This is a spiral, but you know that, you have to get off before it goes completely out of control.

bigjl

Sounds like your current car was bought from CarCraft.

Sorry to say you can't afford a new car.

You will end up bankrupting yourself if you carry on buying cars for retail, financing so you owe more than retail then buying a new one with same situation.

All cars cost money to run. That is just life.

And without the details of the car you have and how much you paid for it how long you have had it etc

Then any advice will be inaccurate and potentially misleading.

Apples2

How on earth can you acknowledge owing £11,000 on a car worth just £6,500 yet still think financing is a good idea?

This is a stereotype "keep up with the Jones's" giving that completely false image of wealth. Madness!!

jimjames

Can I just confirm the numbers?

Current car value: £6500
Current car loan: £11,000
New car loan £17,000

So regardless of car values you are adding another £6,000 to your debt?

£6000 will pay for a hell of a lot of repairs on what is presumably already a fairly new car if it cost over £11k.

As an indication I'm just replacing the front suspension on a 12 year old car. Total cost including full service kit is £280.

My other car has cost no more than £1000 in repairs in the last 4 years and that has over 140,000 miles on the clock. New cars are not the way to save money and keeping an existing car is likely to be a far more economical way to do it. However economy probably doesn't come into it much if you still want that new car on the drive.