Advice for settling car finance agreement

lucy_looo

Hello
I'm after some help & advice for what the best thing to do is in relation to a Car Finance Agreement that I have with BMW / MINI Finance. I want to get rid of my car as my circumstances have changed, and I need something with 5 doors, which is cheaper to run in all aspects.

I recently got a settlement quotation of c.£10,000, which was quickly followed up by a call from the MINI salesman saying "you want to sell it?!". I purchased it in August 2014. Now, I distinctly remember both he and the guy who ran through my finance paperwork telling me that I'll "never owe more than the car is worth". Which I thought "great!". The aforementioned salesman has since told me that they'd buy back the car at £7,500!! The cheeky blighters. Which leaves me a whopping £2,500 short to settle the agreement - an amount I am not prepared to part with.

What is the best way to get out of this agreement? I don't mind if I am left without a car as I have access to my partners.
- I've thought about taking out a 0% purchase credit card (banking on being given a big enough credit limit) and paying off what is owed so that the car is mine. I was then thinking of selling it privately and then using the money from the sale to pay off the credit card transaction. From looking around on Auto-Trader, MINI's similar to my age and mileage are typically selling for £9,500 - £10,000.

Advice PLEASE!

burlington6

lucy_looo wrote: »

Hello
I'm after some help & advice for what the best thing to do is in relation to a Car Finance Agreement that I have with BMW / MINI Finance. I want to get rid of my car as my circumstances have changed, and I need something with 5 doors, which is cheaper to run in all aspects.

I recently got a settlement quotation of c.£10,000, which was quickly followed up by a call from the MINI salesman saying "you want to sell it?!". I purchased it in August 2014. Now, I distinctly remember both he and the guy who ran through my finance paperwork telling me that I'll "never owe more than the car is worth". Which I thought "great!". The aforementioned salesman has since told me that they'd buy back the car at £7,500!! The cheeky blighters. Which leaves me a whopping £2,500 short to settle the agreement - an amount I am not prepared to part with.

What is the best way to get out of this agreement? I don't mind if I am left without a car as I have access to my partners.
- I've thought about taking out a 0% purchase credit card (banking on being given a big enough credit limit) and paying off what is owed so that the car is mine. I was then thinking of selling it privately and then using the money from the sale to pay off the credit card transaction. From looking around on Auto-Trader, MINI's similar to my age and mileage are typically selling for £9,500 - £10,000.



Advice PLEASE!

So he was right, as the value currently stands by your research?

They offered you less because they have tens of thousands of pounds worth of overheads a week, every week without fail.

Herzlos

You probably won't be able to settle the finance with a credit card. Or get a 0% card with a £10,000 initial limit.

But the most cost effective is to settle it (with a bank loan?) and sell it privately, if you're careful you could end up without any negative equity.

If your end goal is to get another car, you might be best seeing what you'll get for it as a trade in somewhere else, and even if there's some negative equity you should be able to roll it into the finance.

Or you could play hard-ball with BMW and tell them you'll take £8,500 for it.

motorguy

lucy_looo wrote: »

Hello
I'm after some help & advice for what the best thing to do is in relation to a Car Finance Agreement that I have with BMW / MINI Finance. I want to get rid of my car as my circumstances have changed, and I need something with 5 doors, which is cheaper to run in all aspects.

I recently got a settlement quotation of c.£10,000, which was quickly followed up by a call from the MINI salesman saying "you want to sell it?!". I purchased it in August 2014. Now, I distinctly remember both he and the guy who ran through my finance paperwork telling me that I'll "never owe more than the car is worth". Which I thought "great!". The aforementioned salesman has since told me that they'd buy back the car at £7,500!! The cheeky blighters. Which leaves me a whopping £2,500 short to settle the agreement - an amount I am not prepared to part with.

What is the best way to get out of this agreement? I don't mind if I am left without a car as I have access to my partners.
- I've thought about taking out a 0% purchase credit card (banking on being given a big enough credit limit) and paying off what is owed so that the car is mine. I was then thinking of selling it privately and then using the money from the sale to pay off the credit card transaction. From looking around on Auto-Trader, MINI's similar to my age and mileage are typically selling for £9,500 - £10,000.

Advice PLEASE!

Why do you suddenly "need" a five door car?

dannyrst

Have you spoken to the salesman that said you'd never owe more than the car is worth? Does he remember saying that to you? I'd suggest that you go elsewhere for a car and let them settle the finance and learn the lesson never to believe car salesmen.

burlington6

dannyrst wrote: »

Have you spoken to the salesman that said you'd never owe more than the car is worth? Does he remember saying that to you? I'd suggest that you go elsewhere for a car and let them settle the finance and learn the lesson never to believe car salesmen.

The salesman didn't lie though. The op has done research to value the car at roughly the amount owing on finance