Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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I just looked into doing this with mine to save me some pennies.
When I got the car in September, it was on the forcourt at 12k, if I was to give it back now, because of car prices, the settlement figure would be £4000.
Buying a car on finance is bad mmmkay?  4 thousand pounds to give the car back... awesome.
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Firestate88
Member
Registered: 10th Jul 08
Location: Northampton England
User status: Offline
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thats what happens when you buy car shop shite
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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No, that's what happens when you buy any car on finance and second hand car prices fall through the floor soon after.
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DannyB
Premium Member
Registered: 6th Feb 08
User status: Offline
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I crashed my car I had on finance, obviously not on purpose..
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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Did you have gap insurance Danny?
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John
Member
Registered: 30th Jun 03
User status: Offline
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Buying a car on finance without a decent sized deposit is bad.
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DannyB
Premium Member
Registered: 6th Feb 08
User status: Offline
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quote:
Originally posted by Robin
Did you have gap insurance Danny?
Yep  you'd be a fool not to
[Edited on 22-02-2009 by DannyB]
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mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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Not sure I'm understanding this properly. The £4000 is what you have outstanding on it? And the car is surely still worth more than 4k even if you sold it to a dealer
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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quote:
Originally posted by Matty G
Not sure I'm understanding this properly. The £4000 is what you have outstanding on it? And the car is surely still worth more than 4k even if you sold it to a dealer
No, the £4000 is the settlement fee to cover the negative equity on the car.
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ShEp
Member
Registered: 9th Aug 05
Location: Dingwall, Highland
User status: Offline
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How long have you had the finance Robin?
And what term is it over?
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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Since september, and it's over 60 months.
Basically, I want something which costs me less each month so I've got some free cash.
Went to the car shop today and to change my car for something of a similar value would cost me £4000....
If I give them the car back, I have to give them the car and £4000.
So really, it doesn't work out any cheaper
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mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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When I looked at doing it with mine my dealer was going to give me the settlement figure the finance company wanted for it, wasn't going to cost me anything to get rid. That was in October last year so things may have changed now
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ShEp
Member
Registered: 9th Aug 05
Location: Dingwall, Highland
User status: Offline
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can you not trade it into a garage that settles finance and re-finance something cheaper?
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mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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I understand now.
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flybikeslee
Member
Registered: 2nd Jan 07
Location: Liverpool
User status: Offline
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burn it
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John
Member
Registered: 30th Jun 03
User status: Offline
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5 years without a decent sized deposit will normally create this situation even without the market crashing.
Decent sized deposit and 3 years or don't bother imo, unless you know for a fact(does anybody?) that you'll keep the car for the 5 years.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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quote:
Originally posted by ShEp
can you not trade it into a garage that settles finance and re-finance something cheaper?
Could do, but I don't know of any round here.
Not sure I want finance again anyway, I'm thinking of settling and getting something for £3/4k and not having any outstanding debts to speak of.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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I agree John, and hindsight is a wonderful thing, believe me.
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ShEp
Member
Registered: 9th Aug 05
Location: Dingwall, Highland
User status: Offline
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I never put down a deposit,
But I got a reasonable amount over 3 years that I knew I'd be able to afford and had enough stashed away incase of an emergency,
Good call as I was made redundant 3 months later 
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mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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I got told when I took my finance out that I could give the car back without costing me anything one half the finance term had passed. Which still isn't much good to you cos thats about another 2 years to go
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John
Member
Registered: 30th Jun 03
User status: Offline
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Is yours not hire purchase though Matt?
Does that not work slightly differently?
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MarkM
Member
Registered: 11th Apr 01
Location: Liverpool
User status: Offline
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Lots of finance deals have hand back clauses after half the outstanding balance has been paid...
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mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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Yeah its hire purchase so its probably different to Robins finance
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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It's half the balance not half the term, not always the same. Most agreements have this I think but this doesn't help Robin - it's a 5 year term and it's only been running a few months.
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Kano
Member
Registered: 29th Aug 04
Location: Fife
User status: Offline
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quote:
Originally posted by Ian
It's half the balance not half the term, not always the same. Most agreements have this I think but this doesn't help Robin - it's a 5 year term and it's only been running a few months.
Not strictly true.. You can VT (Voluntarily Terminate) half way throught the term. Basically walk away from it with nothing, it does show as a marker on credit history but its perfectly legal. Salesman arent allowed to tell you about it when you buy the car but it will be in your small print somewhere.
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