Audi car finance

darrenbilly

Good afternoon everyone, I am looking for some advice regarding finance held on an Audi A3 convertible.

I hope I give all the information you need... Car was purchased September 2012. Deposit for the vehicle was a traded in Citroen C3 - they gave around £1550 for it. Money paid on the day was £100, to hold the vehicle. The monthly payment was agreed at £330, for 4 years. I was told that after 2 years if circumstances change I could give the car back. I have found that the payment is a struggle, therefore I would like to know my options in regards to getting rid of the car, whether I exchange for another Audi, perhaps the A1 as they are cheaper, or a different make altogether. At the time the car was worth £22,000 on paper. I had it valued by Audi recently at £17,000 (expires June). I'm sure Audi may under value it, to benefit them. So please tell me, what are my options? Can I take the car to Audi and use it as a hefty payment on a new car, will they give me £17,000 cash for it, or does that money go to the finance company? Can I use that money to pay for a cheaper car in full? Could I go to, for instance, Peugeot and have them take it off me in place of one of their new vehicles?

Ultimately I want to get rid of it. It's costing me too much money when I need to be saving for my own place. Any information is much appreciated.

Thank You

[Deleted User]

If they allow you to VT it, then you can potentially return the car and not pay nay more.

But you seem to suggest you can give the car back and also have them pay you for it - that's not how it works. It you were to sell it (assuming you're allowed to), then you would obviously need to pay Audi for it. As well as paying for your new car.

National_Debtline

Hello there. This information is based around your finance being 'hire-purchase'. Please do check the credit agreement.

There are two options.

1. Give the finance firm back the car. They will sell the vehicle (this could be at an auction) and deduct the sale proceeds from the total amount owing under the finance contract.

2. You could exercise your 'voluntary termination rights'. This allows you to hand back the car. This limits your liability to 50% of the finance contract. Any deposit you've paid (e.g. the old car) would be included towards the 50%.

Many of our callers find that option 2 is an easier (and cheaper!) way of getting out of car finance. You can read more on hire purchase via our fact sheet, here.

Hope you find this information useful.

Best wishes,

David @ National Debtline
twitter: @natdebtline

Caz3121

This sounds like HP rather than a loan which means that the car belongs to the finance company and you cannot sell it without paying off the outstanding amount

Can you confirm your figures? is there a balloon payment due at the end
You can normally hand the car back after paying 50% so you need to work out when that is
You said 4 years @ £330 per month + £1550 for car + £100 which comes to £17.5k yet you say the car was worth £22k

darrenbilly

I have not got the contract in front of me right now, so the figures were only guesses. The monthly payment amount is correct. I must have remembered the cars value at the time of purchase incorrectly, as it certainly does not add up. I'm happy that I may be able to hand the vehicle back after two years, although I do not like the possibility of being blacklisted, nor the fact I may be left with nothing to buy myself a new car. Perhaps if I received £2000 after settling, that would be a decent deposit on a cheaper vehicle. I shall fish out the contract and confirm figures shortly. Thank You

Alt

Are you sure the payments are not over 5 years? Recent valuation of car at 17K does point to original price of around 22K so either you have a final Balloon payment or the payment period is longer than 4 years

Alt

forgotmyname

If there is a balloon payment at the end does that figure get included in the 50%?

eg.. £25 car.. £20k over 4 years then a final payment of £5k.

Is 50% £10k or £12.5k?

honey10

Can I just ask, if the monthly payment is difficult, why not give the car back when you are able to, then get a cheap runaround?
You can get a decent car for under £1000, obviously it will be older, but its likely to be cheaper on insurance, and you are saving the monthly payment.

darrenbilly

Thanks for your replies everyone, I have the facts and figures now. Contract was signed on 06/09/12 for a period of 48 months. Amount of credit £21,750 with 7.10% interest. Total amount of credit (with interest?) £26,503.68. Monthly payment is £330.69. I was given £1500 for my old Citroen. It says the finance is their 'solutions' product. Through Volkswagen.

Vehicle Cash Price was: £24,250
Less Advance Payment of £2,500
Amount of Credit: £21,750.

Total amount payable, including final balloon would be £29,003.68.

Maximum annual mileage is 8000, to date the car has done under 10,000.

In the Termination section it says that if I have paid at least 50%, £14,501.84 I do not have to pay any more. Car was recently valued by Audi at £17,000. On line quotations have said £19,000-£21,000 depending on private sale, trade in etc.

I hope the above is enough for some guidance. Thank You!

k3lvc

1) Phone VWFS in the morning & ask them for a settlement figure
2) Get your valuation (£17k ?) in writing
3) Assuming the 17k valuation is more than the settlement figure then sell your car to them and pay off finance

Simples

If valuation is lower than settlement figure then repeat steps 1 & 2 every month until they balance

kteara

Finance is such a bad idea