The Motor Forum

SambaFi · Posted: Wed Oct 07, 2009 8:27 pm Post subject: New car

I am thinking of swapping my Daewoo for either a Honda Jazz or a Nissan Note but am in negative equity. However, I have been told that as I am more than half way through my finance I can hand the Daewoo back with no penalty. Can anyone confirm this?

gonnabuildabuggy · Posted: Wed Oct 07, 2009 8:30 pm Post subject:

Unlikely I'd think - it all depends what your contract says.
_________________
Aint no substitute for cubic inches.

Mark · Posted: Wed Oct 07, 2009 8:37 pm Post subject:

Who has actually told you this SambaFi?

If it is the dealer or finance company, I would suggest asking for it in writing before making a move. If it was a friend/acquaintance, you'll have to dig much deeper into the contract to find out.

Just be very careful.

Good luck.

Roadrunner · Posted: Wed Oct 07, 2009 8:40 pm Post subject:

I don't know about the finance question, but the Honda Jazz is a good call.
_________________
"Whatever is rightly done, however humble, is noble." Henry Royce

SambaFi · Posted: Wed Oct 07, 2009 8:49 pm Post subject:

Two of my work colleagues have done it but I can't find any mention of being able to do this in my contract.

Frank Bullitt · Posted: Wed Oct 07, 2009 8:50 pm Post subject:

If it is on HP this is indeed correct, you can juts hand the car back, if on a PCP kind of thing then it isn't.

However, handing the car back might affect your credit rating.
_________________
Shame your mind don't shine like your possessions

SambaFi · Posted: Wed Oct 07, 2009 8:52 pm Post subject:

It is on HP.

Frank Bullitt · Posted: Wed Oct 07, 2009 9:03 pm Post subject:

Then you shall be able to hand it back.
_________________
Shame your mind don't shine like your possessions

SambaFi · Posted: Wed Oct 07, 2009 9:31 pm Post subject:

Thank you Frank. My colleagues said they signed for a new one prior to handing the old one back.

Boxer6 · Posted: Wed Oct 07, 2009 10:12 pm Post subject: Re: New car

Twelfth Monkey · Posted: Thu Oct 08, 2009 7:57 am Post subject:

DradusContact · Posted: Thu Oct 08, 2009 9:15 am Post subject:

I'd be more tempted by the note than the Jazz, the main draw for me is its maid in England.
_________________

Dr. Hfuhruhurr · Posted: Thu Oct 08, 2009 11:27 am Post subject:

DradusContact · Posted: Thu Oct 08, 2009 11:49 am Post subject:

Ah well then, even playing field! Still prefer the note myself on looks alone but imagine theyre both quite similar.
_________________

Nice Guy Eddie · Posted: Thu Oct 08, 2009 11:51 am Post subject:

You will have to check your agreement for the rules of halves and thirds.

If you have taken the financing out through a dealer then you should be able to hand the car back without penalty if you have paid over half the agreement. You need to check with the finance company how they record your giving the car back. It can be recorded as Voluntary termination or volentary surrender, one will effect your credit rating one will not, I forget which is the detrimental terminology but think that if its recorded as VT then nothing can go against you.
If you have taken funding through a bank as a loan then you will have no rights to the above rule.
One thing to check what the return conditions are, the car will need to be to a sales standard, no dents over and above wear and tear or they will charge for this, also you will need to pay a small fee to the finance comapany and a delivery charge to their auction house of choice. You can deliver the car yourself to offset this cost.
_________________

SambaFi · Posted: Fri Oct 09, 2009 6:42 pm Post subject:

Today the finance company told me that as my finance is a personal loan not a conditional sale it is no go.

Boxer6 · Posted: Fri Oct 09, 2009 8:05 pm Post subject:

SambaFi · Posted: Fri Oct 09, 2009 8:23 pm Post subject:

I owe 3.5k on it and the trade in value is approximately 1.5k so unless I can get an above book offer I will be keeping it for the forseeable future.

Boxer6 · Posted: Fri Oct 09, 2009 8:55 pm Post subject:

Chris M Wants a V-10 · Posted: Fri Oct 09, 2009 9:31 pm Post subject:

If it's a personal loan, is it actually loaned against the car, or just a loan to you as an individual? If the latter, you should be free to change the car, assuming you can get additional finance to make up the difference between trade-in and cost of the replacement
_________________
Papped by Paul; London 2008-09-27

TimR · Posted: Sat Oct 10, 2009 3:34 pm Post subject:

If you're really desperate for a new car you can trade yours for an agreed price then get that offset against the outstanding finance and get a loan for the remainder plus the new car.

However, you'd end up needing to borrow £1,500 - 2,000 more than the new car so it's not really a good idea.

JohnC · Posted: Sat Oct 10, 2009 4:21 pm Post subject:

You could speak to a dealer and see what they could do to flex the deal so that you could get finance on the new car. If there is discount available on the new car, they might be prepared to give you more for your car, to the tune of the discount they would otherwise have given.

Alternatively you could sell the car privately. However I do see a problem re clearing your old finance. Because it is a personal loan, you will have to continue paying your old monthly payments and you will need the proceeds from the sale of your car as a deposit. And you will have to pay the new loan payments as well!

You could always try a PCP, sell your existing car privately and pay off as much of the loan as possible.
_________________
Every man is the architect of his own future.

SambaFi · Posted: Sat Oct 10, 2009 4:29 pm Post subject:

SambaFi · Posted: Sun Oct 11, 2009 8:02 pm Post subject:

I took a moderate hit on the Daewoo and bought a Note which I pick up tomorrow.

BeN · Posted: Sun Oct 11, 2009 8:12 pm Post subject:

That was fast...

Pictures please.

_________________
On the other side of the world - Hurlecot de Millou

Not the same since 2008

Boxer6 · Posted: Sun Oct 11, 2009 8:27 pm Post subject:

Nice one. Here's to many happy miles!

_________________
Just keepin' on keeping on.

TimR · Posted: Sun Oct 11, 2009 8:59 pm Post subject:

That was quick.
Good, unusual choice.

What version is it?

Roadsterstu · Posted: Sun Oct 11, 2009 10:54 pm Post subject:

Big TC · Posted: Sun Oct 11, 2009 11:01 pm Post subject:

A sharp choice - lets hope it doesn't go flat on you.

Ok, I'll get me coat...................
_________________

It's a '57 Pontiac Star Chief, dontchaknow.

SambaFi · Posted: Sun Oct 11, 2009 11:06 pm Post subject:

[quote="TimR"]That was quick.
Good, unusual choice.

What version is it?[/quot

It is a 1.4 SE, not a V8 unfortunately.

Roadsterstu · Posted: Sun Oct 11, 2009 11:12 pm Post subject:

[quote="SambaFi"]

Roadsterstu · Posted: Sun Oct 11, 2009 11:13 pm Post subject:

Tomorrow. I should have read that properly! Sorry...

Anyway, pics, asap

SambaFi · Posted: Sun Oct 11, 2009 11:16 pm Post subject:

DradusContact · Posted: Mon Oct 12, 2009 9:07 am Post subject:

Even the boggo one is well equipped, i had one on holiday last year, was decent for what its intended for.
_________________

Roadsterstu · Posted: Tue Oct 13, 2009 8:22 pm Post subject:

How is the new car then? Hope you are enjoying it.

Dr. Hfuhruhurr · Posted: Wed Oct 14, 2009 7:32 am Post subject:

Bob Sacramento · Posted: Wed Oct 14, 2009 9:19 am Post subject:

I'd be interested in hearing the verdict on the Note. Father-in-law is looking to chop his 3 year old Celica for a 1.6 auto Note (82 years old, getting on a bit etc etc. - him not the car)
_________________
Keep Calm & Carry On.

SambaFi · Posted: Wed Oct 14, 2009 7:09 pm Post subject:

Got it on Monday, will take pictures on Saturday and it is good to drive and own. It is amazingly spacious both for people and stuff and has the usual light Japanese clutch etc. It handles a lot better than the Daewoo and the only fault is that it is a bit noisy at speed but no more than the Daewoo. I am going for a long run on Sunday to see my new niece which will allow a fuller verdict.