What are my options with my car loan?

AndyMc.....

Deastons wrote: »

In August 2016 I bought a new car, and rather than do a PCP deal through the dealer, I got a Halifax car loan.

It's a big car which I've come to resent. As nice as it is to drive, it rattles and creaks and it's a pain to park, so I've started thinking about how to get out of it.

I have another car within the family (a Mercedes C-Class) so don't actually need this car.

Halifax says there's a £37k settlement figure, but here's the questions:

1. What if I just want to get rid of the car and have nothing? The car is probably worth around £55k, but to get the £37k settlement money, I'd need to sell the car, but the car isn't mine to sell.

2. Part exchange for a new car, but I'd consider something smaller and much less ostentatious. If that's the case, can I buy a £30k car and part-x mine? What happens - the dealer gives me £25,000 and a new car?

Or is there a better way to do this?

That’s funny because you drove your mini into a hole.

Car_54

AndyMc..... wrote: »

That’s funny because you drove your mini into a hole.

But it was dark so it didn't matter.

Mercdriver

A mini that is worth 55k? Is it the one used by Michael Caine in the Italian Job, or just (another) figment of DM's imagination? It's a Dark Matter. A Dark Matter indeed.

Deastons

AndyMc..... wrote: »

That’s funny because you drove your mini into a hole.

You really, really have a bee in your bonnet about that. You're like my wife - dragging up mistakes I've made many months and years later.

Well, I guess there's two plausible explanations:

1. I've made-up everything because I like asking quite boring questions on internet forums that have no relevance to my life.

2. My wife decided to sell her Mini and buy a Mercedes.

I'll leave you to decide.

Deastons

ratrace wrote: »

Op, its best calling halifax up and clarifying to them what you want to do, we dont know what sort of deal you have on your car as somene says above halifax do 2 plans one is a fixed plan and you own the car the othe is a pcp where you have the option to walk away

see the videos on the halifax link below
https://www.halifax.co.uk/car-finance/

You're absolutely right, of course. Calling Halifax will explain my options, but I was just wondering which, financially, is the most sensible to do considering I'm wanting to down-size.

I have the PCP (Car Plan Flex) deal.

motorguy

Deastons wrote: »

Ah, ok. This is suddenly a lot easier than I was expecting. I assumed I didn't own the car, Halifax did.

So I could sell the car tomorrow for, say, £55k and then settle? And then go and buy a new car? Much more financially worth while than part-x.

The easiest way to sell it privately would be to have the buyer pay the finance company direct, and to pay you the difference. So at worst two bank transfers instead of one for the buyer. Halifax would then issue a letter / email saying they have no further financial interest in the car to the buyer.

I suspect though that you might have problems selling a car at this point privately. It might be better to contact a few specialists in that sort of car and ask them for a bid on it. You might be surprised at (a) the variance in the bids and (b) the strength of them.

You might not necessarily get the best deal trading in against a cheaper car so i'd be trying to sell it on separately.

You mentioned a car at £30K? How would you make up the difference? Cash or loan? If the latter you could just use the equity - £18,000 - and buy yourself a decent car loan free?