i need some money to help family
Comments
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What's it for?
Best option if you do need the £4k is a loan from your own bank.0 -
my son needs to get rid of negative equity on his car as he need to get rid of the car i want to help with this0
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my son needs to get rid of negative equity on his car as he need to get rid of the car i want to help with this
Who says the car is in negative equity? Who is valuing the car? Is it a fair valuation, and has he looked at other options of selling/trading it in to reduce the difference between the settlement figure and the current value?
How long is the finance agreement on the car, and how far into it is he?0 -
I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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After exhausting DrEskimo's suggestion you still wish to lend/give your son £4k then the least expensive way of doing it is probably using a Money Transfer credit card. The other way would be to apply for a loan of £7,500 (because the interest rate will be lower than a £4k loan) and overpay £3,500 of the loan straightaway.0
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had 2 valuations around the same price, he has to pay at least half of the repayments to give the car back that is what he is going to do but is that amount short.
I may well go with the Money transfer card that seems a good option
thanks for the advice
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had 2 valuations around the same price, he has to pay at least half of the repayments to give the car back that is what he is going to do but is that amount short.
I may well go with the Money transfer card that seems a good option
thanks for the advice
Are these from dealerships, or just WeBuyAnyCar outfits? What about a private sale, how much are similar cars on AutoTrader selling? Have you tried a site called Tootle? How about local garages that will sell it under a Sale or Return agreement for a fee?
When I sold my last car that was on finance I would have believed I was £2k in negative equity had I believed a couple of dealers. I ended up selling it for £500 more than the settlement, which was a much more realistic value of the car (using Tootle).
I believe you are referring to Voluntary Termination (VT). This can be done when 50% of the total amount payable has been paid. It's slightly different to 50% of the repayments, as it includes the full cost of the car and the finance (including fees).
I could be wrong, but if that is the plan, you may as well use the loaned money to keep paying the monthly payment and keep the car. Unless I'm missing something, it will cost the same whether you pay it off early and hand the car back now, or whether you use the loan to pay the monthly payments and keep the car, up until the VT point.0 -
my son needs to get rid of negative equity on his car as he need to get rid of the car i want to help with this
If it were my son I'd let him suffer so he can learn the lessons from this. He'll never learn whilst you keep bailing out his bad financial decisions. No doubt the car is perfectly serviceable and usable so he'll just have to continue to use it and pay for it.0 -
What's he planning on doing once the car is returned?
How long is left before the pcp runs out?
If you can use a car; you're probably better taking it off him, using it yourself and making the rest of the payments until the 50% mark or the lease runs out, which usually happen within about 3 or 4 months of each other.0 -
If it were my son I'd let him suffer so he can learn the lessons from this. He'll never learn whilst you keep bailing out his bad financial decisions. No doubt the car is perfectly serviceable and usable so he'll just have to continue to use it and pay for it.
I'm inclined to agree, but I assumed (possibly naively), that the son was wishing to exit the contract early due to change in circumstances that meant he was no longer able to service the payment. Not that he just fancied a change of car..!
If it's the former, I still kind of agree with you, and personally it would depend on the exact nature of the situation as to whether I would intervene as a parent or not. If it's the latter, then I completely agree.
Taking out large loans to pay for high priced, high depreciating assets is not a decision to be taken lightly. It has consequences, and can lead to financial hardship. Sometimes these need to be experienced in order to be fully appreciated, and ultimately to learn from it...0
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