Car Finance + More!!!

Sharky88

Hi everyone its great to find somewhere where hopeuflly i can get some help with my problems. I am another newbie so please bare with me while i try and give a brief description.

I am 19 years old and have made the biggest mistake of my life by financing a brand new car. This was done at the end of August Last Year. The Situation is follows

• Car: 2007 (07) Fiat Grande Punto 1.2 Active Stripe
• Cash Value on Purchase: £8,922.22
• APR: 14.21%
• Total Payable: £12,121.20 @ £195.37 per month

Seeing as the finance company and dealership are giving me as little help as they can i simply need to know what my options are with regard to selling the car, paying the interest with something left over to get an old banger again...

I'm sure you will need to learn more details but i'm not sure what you need to know. any help is greatly apreciated
Thanks

mountainofdebt

Does this help?

LilacPixie

Firstly consider what is the settlement amoun on the finance at the moment?? what is the car actually worth??

Usually you need to clear the finance amount first before you can sell the car.

The link Mountainofdebt sent you doesn't work so here it is again

standupguy

There is some big depreciation on these cars and I think you will find yours will unfortunately be worth £5000 to £5500 depending on mileage and condition etc.

You need to request a settlement figure but I would guess it would be around £9000?

You already know this is a big mistake as you will have negative equity of at least £3000?

You cannot sell the car without settling in full as it belongs to the Finance Company until its paid.

I am afraid new Fiats, low deposits and 60 month Finance deals spell big trouble due to the depreciation factor and higher interest on the longer term of 5 years.

Unless you really cannot afford the payment you will be much better off continuing to pay and keep the car for the moment.

There are other options once you have paid £6060 (that is payments and deposit added up)

missyp123

I had to sell a car 5 months after getting the fianance for it although it was 3years old and not brand new as your was.

Lucky for me i got £500 off the asking price of the car. Taking into account the payments made i was able to get a loan that covered the finance. The car sold for £50 short if what i needed and knowing it could have been much worse i learned my lesson.

Whatever you decided to do sell/keep just remember to never buy without going away and doing your sums, i have a p reg now and it does the same job as the car that costed me so much money.
I am in the process of tackling allot of debt now and as your still young use this as a big lesson learned too.

Good luck

Sharky88

I am trying to find somewhere other than a dealer who can give me a decent valuation. the car has done 11,000 miles. Would it be worth looking into selling the car for the highest possible price then taking out a low interest loan to pay back the difference, leaving some extra to buy an old banger???

Sharky88

standupguy wrote: »

Unless you really cannot afford the payment you will be much better off continuing to pay and keep the car for the moment.

There are other options once you have paid £6060 (that is payments and deposit added up)

does this mean that if i cannot afford the repayments which it is slowly heading that way due to fuel etc, will the car be reposed or if i tell them i cant afford it is there a way for them totake the car and cancel the finance altogether?

standupguy

The agreement can be voluntary terminated and the car handed back when you have paid half the hire purchase price - which appears to be £6060.

You will be way off from paying that amount so that is not an option at the moment.

To give you an idea of the worth why not take the car back to the Fiat garage and ask them what they would give you to buy it back? In theory they should give you the best price as they are a Fiat agent?

If you fall behind with your payments you will receive a default notice at some stage and if you have not paid the required amount by expiry of the default notice then the car will be repossessed. If this happens you will still have certain outstanding liabilities and may be taken to court and end up with a CCJ.

What it does mean in any case is that your credit record will be detrimental and make you a sub prime borrower in future, facing higher interest rates, that is if you can get credit.

Is there anyone in the family that can help you with the repayments because if you can make the payments and hang on to the car it really is your best option?

If you are intent on going the banger route then you will need a loan of at least £5000 unsecured to clear your negative equity and buy a banger that you still need to tax, insure, maintain and will have to stump up for repair bills - if this is your last resort and your credit record is unblemished you could try it but you are paying a lot for very little.
You may also find it difficult to get an unsecured loan in view of your age.

hayley_jayne

Have you missed any payments to date?

Sharky88

No i haven't missed any, so far but im statring to dip into my overdraft because of this on a regular basis. 3rd month in a row

LilacPixie

Sharky

Parkers guide will give you an estimated value for the car. To be honest I think you may have to look at reducing your outgoings and petrol usage until you are in a position to terminate the agreement without penalty which is usually afteryou have paid at least 50%.

Could you maybe get a 2nd income stream to help??