Car Finance Dismay!

molerat

Your agreement will state the amount you need to have paid to hand the car back, this will include any deposit you paid. HP is often easier to reach the 50% point as there is no large balloon to take into account.

foxy-stoat

You need to work out the cost to change your car, I dont think you will make enough of a saving to make it worth your while, especially if the savings you are going to hopefully save will go on your kiddies.

If you only want to spend £100 a month on financing an older/cheaper car then your servicing and running costs will go up. The cheapest way to finance buying a cheaper car would be a creditcard with a money transfer option and look to clear the debt by the end of the low interest deal.

So unless you have enough equity or cash to buy your way out of the agreement plus £2000-£3000 cash/loan secured to buy yourself a cheaper car I would stick with what you have until the end - if you can save £50-£100 a month now in 3 years you will be able to buy a reasonable car outright and be better off.

CraigBry

I think you're right, I just feel bad driving a car I can't really afford!