VT and Lease advise

Jazziboo
Jazziboo Posts: 28 Forumite
First Anniversary First Post Combo Breaker
in Motoring
Hi there,

Im planning to VT my current car on HP in September, as ill be able to make a lump sum payment to take me to the 50% repayment mark.

Today ive seen a lease deal on the car i want and it says Oct delivery.

So my query is would it be too early to put an order in (provided i get accepted) being as ive not started the VT process? Or is it the norm to do it in advance?

Thanks

Comments

  • Penelopa.Pitstop
    Penelopa.Pitstop Posts: 1,145 Forumite
    First Post Name Dropper First Anniversary
    If you are sure you will be able to VT current car, order the leased one. Is it factory order? It may get delayed, so there's no 100% guarantee it will actually be October. You will have to be flexible with your termination date and collection date. Also broker/dealer will be able to held your car for a bit of time.
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
    First Anniversary Name Dropper First Post
    Is VT your best option?

    Have you had the car valued, and compared that to the settlement figure? For a straight HP (i.e. no deferred 'balloon payment' as you get in a PCP), I imagine it's very rare that after 50% of the total amount payable (i.e. 50% of the monthly payments with HP) that the car will be worth less than the settlement....unless you paid way above market value for it, it's plummeted in value significantly, or you were paying astronomical interest...

    I say this, as it would be much easier to just wait for the lease car (I wouldn't recommend leasing as a money saving exercise, but that's another post!) then just go to your local garage or WBAC centre and trade the car in.
  • facade
    facade Posts: 7,022 Forumite
    Name Dropper First Post First Anniversary
    Jazziboo wrote: »
    Hi there,

    Im planning to VT my current car on HP in September, as ill be able to make a lump sum payment to take me to the 50% repayment mark.


    Why don't you keep your car until you have paid upto the VT point?


    Why throw money away to VT it now, and then immediately get into a lease? (BTW, a lease is for life, you cannot VT it) your car is effectively "free" from now until the VT point if you are going to make a cash payment.
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • Jazziboo
    Jazziboo Posts: 28 Forumite
    First Anniversary First Post Combo Breaker
    Thank you for your responses., they've been helpful and made me do a bit more thinking and research.

    Selling my car to settle the finance wouldnt be an option due to the valuations i got back vs the settlement figure meaning that there would be a large shortfall - VT is the route i'll be taking.

    I contacted the finance company who confirmed that i only have 4 more payments to make to take me to the 50% marker (or could pay it in lump sum to execute it sooner).

    Facade made a valid point that if were to pay the lump sum to then lease i'd ultimately be paying two cars at the same time. Since my original post I've actually found another lease deal (factory order with a 12 - 16wk delivery time) which im going to go with - as that will coincide with the 4th and last payment for my current car and when i VT.
    Say if lease car is delayed then I'd have another car in the household to use, so that wouldnt be a problem.
    As it will be my first lease ive gone with a 2 year deal and the monthly repayments are much lower than what i pay for my current car.
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