Car Decisions - Hire Purchase Get-Out?

Newbrokebride

Hello all,

Having just got married, I am now more broke than a church mouse, and I am now trying to reevaluate my finances so that I can ensure that I am in the best position possible.

In August 2006 I bought a new car which, having moved to London, I never ever drive. The car is on hire purchase - I paid approx £3000 deposit (trade in of old car), I pay £220 per month for it, and will need to pay about £3000 at the end of the period to own the vehicle.

Obviously I also pay tax and insurance on this too - making it a very expensive and hardly used piece of kit! It only has 7000 miles on the clock.


Obviously I assume that all HP ts&cs are different, but can someone let me know what the standard ones may be?

I don't know what to do for the best - I want rid of the car as quickly as possible, for as much cash as possible. Will I get the best deal taking it back to the VW garage and talking to them, or will I get a better deal selling it privately and then paying the HP off with that money?

I have an awful feeling that I am going to lose out either way!

Any advice from people who have been there welcomed!

Thanks

Hintza

Of course you are.

Best chech your own T&C's and then speak to your finance provider and get a redemption figure.. I think you'll have a heart attack. Speak to the dealer but you will probably get more privately. Best place is Autotrader online (IMHO) don't be greedy though or it will still be sitting there in a couple of months time.

bclark

You will get the best deal by selling privately but the problem is that you are not legally allowed to sell the Car while there is finance outstanding. It os one of those difficult situations but I have also been there.

The way that I got around this situation was to take out a personal loan where there are no penalities for early repayment (I got mine from Northern Rock). Then you pay off the outstanding sum of finance meaning that you can then legally sell the Car. Once the Car is sold you can immediately pay off the loan.

This was the only way that I could see around this situation as the trade in offer I received from the dealer was £2000 less than I eventually sold it for privately.

LandyAndy

Remember that once you've made half the payments you can hand the car back with no penalty. May be the way to go if your car has high depreciation and the redemption value is more than its market value.

Hintza

LandyAndy wrote: »

Remember that once you've made half the payments you can hand the car back with no penalty. May be the way to go if your car has high depreciation and the redemption value is more than its market value.

Tha't a good point had forgotten about that.