Advice on HP of a Car after redundancy

DrEskimo

RDB1 wrote: »

Just had a quick look on Tootle, it looks as though its based on trade in price which for mine is £4500. I obviously could not let it got for that, as a last resort of getting a loan.

Yea I did have to haggle a fair bit with one dealership called Mantis Cars. Might be worth trying them direct?

But OK, lets assume they can't better the £4,500 valuation. Is a personal loan at a reasonable rate realistic, or will your circumstances dictate that you can't borrow? I'm guessing having no income will be a big hurdle....

Personally, I wouldn't have an issue lending money to my siblings, particularly under this circumstance where payment would be almost immediate, but ironically I would be uncomfortable asking for it from them...! What if you can't find a buyer for months? Obviously no one plans on things going wrong, so I would avoid complicated situations where possible...

Discussing it with the finance company might be a good first call, then look at borrowing and settling?

foxy-stoat

RDB1 wrote: »

I was thinking that if I get a loan for the car, then I own the car, I can then sell the car, and then I could owe the family member some money, if needed. Unfortunately I cant use the car for deliveries etc as its limited to 5000 miles per year.

Does your HP agreement restrict the mileage?

If you do not get a job in a month or so you may have bigger worries than owing money to the lender or your family.

MEM62

RDB1 wrote: »

It was bought from a dealer at a total cost of £10,115.44 I have looked over the agreement. The half rule is a total of £5,057.72. But obviously, I don't have that. Currently, a trade in value of the car is £4600.

Are you sure those figures are correct. What vehicle drops from £10,000 to £4,600 in six months? No used car should drop 54% in value in that time.

DrEskimo

£10k is the total cost including interest.

I imagine the cost of the car was around £8k from a dealer. Factor in the £1.5k mark up from a dealer and you’re at £6.5k private, and then the other £2k mark up between private selling and trade value, and you’re at £4.5K...

Buying from a dealer and trading in so quickly is never good as your biggest hit is the difference between dealer prices and trade value. The actual amount it will go down in trade value from now till a couple of years will be pretty minimal, so you’re just spreading that initial hit over a longer period.

That or you buy nearer market value through private sellers or auction, but that comes with risk.

Penelopa.Pitstop

The one that was overpriced at the beginning. Possibly something that tends to lose a lot of value and market is flooded with it. Focus, Astra?

DrEskimo

Penelopa.Pitstop wrote: »

The one that was overpriced at the beginning. Possibly something that tends to lose a lot of value and market is flooded with it. Focus, Astra?

Wouldn't say it's anything out of the ordinary....

£3k markup for a dealer relative to trade value is typical, then the fact it's had around £500 depreciation due to extra miles and another owner in 6months. Seems about typical.

dont_use_vistaprint

foxy-stoat wrote: »

Does your HP agreement restrict the mileage?

If you do not get a job in a month or so you may have bigger worries than owing money to the lender or your family.

If mileage restricted that implies its PCH not regular finance ? So after 3.5 more years if you carried on paying you leave with nothing anyway? What APR are you paying ?

One option I would look into if the APR is 8 or 10% is a loan at 2.7 from Sainsbury's pay the thing off and sell it privately. With the Sainsburys loan or similar you can set the payment amount and term to suit, say over 18 or 24 months. If trade in is 4.5K you may get 6-7K if you hold for the right sale

Vectis

dont_use_vistaprint wrote: »

If mileage restricted that implies its PCH not regular finance ? So after 3.5 more years if you carried on paying you leave with nothing anyway? What APR are you paying ?

One option I would look into if the APR is 8 or 10% is a loan at 2.7 from Sainsbury's pay the thing off and sell it privately. With the Sainsburys loan or similar you can set the payment amount and term to suit, say over 18 or 24 months. If trade in is 4.5K you may get 6-7K if you hold for the right sale

Do Sainsbury do loans to people with no income?

foxy-stoat

Vectis wrote: »

Do Sainsbury do loans to people with no income?

I hope not.

dont_use_vistaprint

Vectis wrote: »

Do Sainsbury do loans to people with no income?

Pay attention. The OP stated they were looking into a family member taking the loan, lets assume this person has an income