DAMAGED CAR ON FINANCE

G97Owens

Hi

I've currently got a 1 series BMW on finance with £9000 left to repay. 

I've had nothing but problems with the car. I had the timing chain replaced last year (I don't think the garage actually did any work) and ever since the engine has been continuously ticking and sounds awful. I've just took it to a local trusted garage and have been told that my clutch is slipping and there's a judder which means I need a brand new clutch and a few other bits and bobs doing which would cost around £1500. I don't have that kind of money to just throw into my car, and I don't want to spend £1500 on a new clutch if the engines ticking and could seize any minute.

I hate the car and running it is costing me an absolute fortune with all the problem's I'm having/had with it, but I can't just get rid of it because I have £9000 left to pay. I don't want to buy a cheap run about either because I'm still stuck with the monthly payments on my BMW.

Can anybody give me any advice please? The finance is on HP if that makes any differences.

Thanks in advance everyone  :-(

Grumpy_chap

G97Owens said:

Hi

I've currently got a 1 series BMW on finance with £9000 left to repay. 

I've had nothing but problems with the car. I had the timing chain replaced last year (I don't think the garage actually did any work) and ever since the engine has been continuously ticking and sounds awful. I've just took it to a local trusted garage and have been told that my clutch is slipping and there's a judder which means I need a brand new clutch and a few other bits and bobs doing which would cost around £1500. I don't have that kind of money to just throw into my car, and I don't want to spend £1500 on a new clutch if the engines ticking and could seize any minute.

I hate the car and running it is costing me an absolute fortune with all the problem's I'm having/had with it, but I can't just get rid of it because I have £9000 left to pay. I don't want to buy a cheap run about either because I'm still stuck with the monthly payments on my BMW.

Can anybody give me any advice please? The finance is on HP if that makes any differences.

Thanks in advance everyone  :-(

Is the £9k left to repay the total if the finance runs full term, or is it the settlement figure if you repay now?

What is the BMW worth if sold in current condition?

neilmcl

How much have you paid so far, are you near to paying 50% of the total amount payable?

DrEskimo

To sell the car with the existing fault you will need to look at Voluntary Termination, or selling it to somewhere like WBAC.

To work out which is most cost effective, look at the cost (if any) to get to 50% of the total amount payable (this is straight forward on HP with no balloon payment, as it's just half way through the term). Next get a quote from WBAC and see how that offer stacks up against the finance settlement figure. You suggest £9,000 but as @Grumpy_chap says, is this the settlement or what's left to pay?

The cheaper of the two options is the way to go. Just be mindful of any damage charges either in the form of charges from the finance company for wear and tear, or from WBAC in terms of a lowered valuation.

Alternatively get a second quote and see if you can use second and parts for a cheaper repair and keep with the car.

G97Owens

I don't think my last comment posted for some reason...

@Grumpy_chap the £9000 is what's left to pay. My settlement figure is £7400. I've put my car into WeBuyAnyCar and given my car was in excellent condition I'd get £5000, however after I've declared that it has

• a knocking sound coming from the engine;
• a faulty clutch;
• a scratch on the bonnet;
• slight damage to some buttons (melted by car airfreshner)

my valuation changes from £5000 to literally £50. £50!

@DrEskimo I spoke to my car finance company (BlackHorse) a few weeks back and discussed voluntary termination as I explained I do not want the car anymore as it's costing me more than it's worth, the operative on the phone explained that I would have to pay for any damages to the car plus an additional £3500 approx.

DrEskimo

£3,500 to reach VT?

What are the details of the HP loan? How much was the car, when did you buy it, how much did pay upfront, and over what term is the remaining amount financed for, and what is the APR?

AdrianC

G97Owens said:

@Grumpy_chap the £9000 is what's left to pay. My settlement figure is £7400.

I've put my car into WeBuyAnyCar and given my car was in excellent condition I'd get £5000, however after I've declared that it has

• a knocking sound coming from the engine;
• a faulty clutch;
• a scratch on the bonnet;
• slight damage to some buttons (melted by car airfreshner)

my valuation changes from £5000 to literally £50. £50!

That's just WBAC saying "We don't want it."

How much would it fetch on eBay, all faults declared?

Let's say that it fetches £2,500.
It will cost you £7,400 - £2,500 = £4,900 to buy it, sell it, and walk away.

@DrEskimo I spoke to my car finance company (BlackHorse) a few weeks back and discussed voluntary termination as I explained I do not want the car anymore as it's costing me more than it's worth, the operative on the phone explained that I would have to pay for any damages to the car plus an additional £3500 approx.

Yes, it has to be in good condition if you're handing it back to them.

Let's say it costs £2,500 to get into an acceptable condition.
It will cost you £3,500 + £2,500 = £6,000 to hand it back and walk away.
But spending that £2,500 to fix it then selling to WBAC would cost you £7,400 + £2,500 - £5,000 = £4,900.