car finance

clio197MJB

Tuner
Points
0
Location
England - Barnsley
Car
RS Clio 197 2.0
a quick question for you guys........

my mate pays £287.00 a month for his car on finance, hes decided that the car does not suite his needs anymore, can he take it back to the dealers and swap it for a bigger car for the same money per month??

he still owes something like £14,000 on this civic type R, would the dealer take the car off him and replace it a different one if he was willing to stick to the same monthly repayments?

im summising that the car they might offer in return would not be as new as the civic but what do you guys think? would he have a chance?
 

HDi fun

TC ModFather
Points
637
Location
Buckinghamshire UK
Car
Passat 2.0 TDi
He'll lose a fortune on the Type R but to be honest this would be the case whether or not the car is on finance.

By which I mean the dealer will offer a trade in against another model but it will be much less than the value of the outstanding finance.
 

pgarner

TC ModFather
Points
417
Location
Lockerbie, SW Scotland
Car
Octy smoke machine
as said he could trade it in and use the money to pay some of the finance - he might also be hit with additional charges - but it wont cover the lot
 

Rudders666

Torque Master
Points
162
Location
West Yorkshire
Car
Ford Focus ST300+
Generally you take out a finance deal for let's say £10k as a round figure. You pay off said amount each month. Say he was down to £7k from start and wanted to trade the car in. The dealership then give you the bargain bucket price for the car, say it was £4k, then give you a new finance deal covering a new car, say another £10k and add what you have left over, i.e. the £3k remainder. So he'll then have a debt of £13k in all to pay off so if he wants to keep the same payments he'll have to take it over a longer period. If that's not available to him then the payments will go up to cover it. Does that make sense?
 

obi_waynne

Administrator
Staff member
Moderator
Points
1,157
Location
Deal, Kent UK
Car
A3 1.4 TFSI 150 COD
If you had a bank loan then this is more flexible, finance is registered to the car so needs to be cleared and a new one set up for the new car.

You can't sell a car on finance (usually) as the finance company have an interest in the car.

It does depend on what sort of agreement you have and the T&C's but rudders seems to be on the nose there.
 

MasterAuron

Very Senior Member
Points
242
Location
379bhp 359lbft
Car
Mk1 Focus RS
Sell privately regardless of finance then buy new car :mrgreen: Not even sure if that's technically legal but just because it's illegal doesn't make it wrong :p
 

Rudders666

Torque Master
Points
162
Location
West Yorkshire
Car
Ford Focus ST300+
Not really possible as people (with a bot of nous about them) will have it HPI checked and it won't come up as HPI clear.
 

obi_waynne

Administrator
Staff member
Moderator
Points
1,157
Location
Deal, Kent UK
Car
A3 1.4 TFSI 150 COD
:lol: I bought a car from my boss that was still on finance! He didn't know, and the finance went back nearly 6 years!

I didn't check because I took my bosses word for it. Ever since then I get a full HPI check done, and often a full inspection - just in case.
 

dpsubaru

The Torque Meister
Points
192
Location
Scotland / Vietnam
Car
Subaru WRX Turbo 04
have only used HPI once, but was worth it for piece of mind. Was buying a Pug 205 Gti 1.9 from two guys in a caravan park, thought it was necessary - ot was clear - (then found a police id card in the glove box when i got it home?).

I'm with MA though, sell privately - you will still be liable to pay off the finance company unless you 'disappear' - but you should get more money selling this way.
 

Rudders666

Torque Master
Points
162
Location
West Yorkshire
Car
Ford Focus ST300+
Well no because it's a loan, not finance. Obviously you're paying the bank back and therefore the bank are not going to come and take your car if you don't pay them. Whereas a finance company will. Totally different set up.
 

aston

The Torque Meister
Points
302
Location
South Dorset
Car
VOLVO and VW
Rent a car, A big strong car with all the insurance available and use it to write off your friends car therefore the insurance will basically buy the car from your mate.
I know a very succesful car dealer who was on the run from German interpol for many years, Why>.......
He worked in a bank and could see who had borrowed money to buy top notch cars that really they couldnt afford to run, just wanted to impress the girls and all that, After a few monthly payments these people were probably sick of the whole thing so my friend would approach the people and offer to steal the car in order that they could get out of the loan agreement and the insurance would pay up. My friend had contacts in Turkey, Policemen and politicians ect who would buy these cars off him, (We are talking top spec Mercs and Porches ect) Sweet but the ex boyfriend of his new girlfriend basically wanted to cause trouble and informed the authorities of the scam. He fled to the UK where the immigration authorities keep no record of who enters the UK. After 8 years the case is dropped under German law and he is a free man.
He bought my Renault Alpine GTA from me, and man he could drive, Boost all the way every gear for 80% of the time...Fast and I was very nervous, He told me about a Ferrari dealer in London who has a better scam but that is another story................
 
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