| Archive for The Motor Forum talking cars since 2006 |
| SambaFi |
New carI 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? |
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| gonnabuildabuggy |
Unlikely I'd think - it all depends what your contract says. | ||||
| Mark |
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. |
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| Roadrunner |
I don't know about the finance question, but the Honda Jazz is a good call. | ||||
| SambaFi |
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 |
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. |
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| SambaFi |
It is on HP. | ||||
| Frank Bullitt |
Then you shall be able to hand it back. | ||||
| SambaFi |
Thank you Frank. My colleagues said they signed for a new one prior to handing the old one back. | ||||
| Boxer6 |
Re: New car
I did exactly that with my last bike when I couldn't get it sold. The finance company person I spoke to told me that (virtually) every HP contract has to allow such a move - though that was 4 years ago, so may have changed. So far as I'm aware, your credit rating won't be affected. The Jazz has a fairly good reputation to be sure, but having had several as courtesy cars I would definitely recommend a test-drive to ensure you like it - there are two or three things that make it very much an acquired taste, I'd say. Good luck! |
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| Twelfth Monkey |
I was once told that your creditworthines would definitely be affacted, so be careful. |
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| DradusContact |
I'd be more tempted by the note than the Jazz, the main draw for me is its maid in England. | ||||
| Dr. Hfuhruhurr |
So is the Jazz ... http://www.autocar.co.uk/News/NewsArticle/AllCars/243855/
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| DradusContact |
Ah well then, even playing field! Still prefer the note myself on looks alone but imagine theyre both quite similar. | ||||
| Nice Guy Eddie |
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. |
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| SambaFi |
Today the finance company told me that as my finance is a personal loan not a conditional sale it is no go. | ||||
| Boxer6 |
Bit of a blow, that. Can you afford to chop it in against something esle instead? |
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| SambaFi |
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 |
Bummer. What about a gallon of unleaded and a match?!?! 
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| Chris M Wants a V-10 |
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 | ||||
| TimR |
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. |
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| JohnC |
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. |
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| SambaFi |
It is loaned against the car. |
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| SambaFi |
I took a moderate hit on the Daewoo and bought a Note which I pick up tomorrow. | ||||
| BeN |
That was fast...
Pictures please. 
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| Boxer6 |
Nice one. Here's to many happy miles! 
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| TimR |
That was quick.
Good, unusual choice. What version is it? |
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| Roadsterstu |
Is it the V8? |
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| Big TC |
A sharp choice - lets hope it doesn't go flat on you.
Ok, I'll get me coat................... |
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| SambaFi |
[quote="TimR"]That was quick.
Good, unusual choice. What version is it?[/quot It is a 1.4 SE, not a V8 unfortunately. |
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| Roadsterstu |
[quote="SambaFi"]
Look forward to the pics. When do you get the car? |
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| Roadsterstu |
Tomorrow. I should have read that properly! Sorry...
Anyway, pics, asap
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| SambaFi |
Ok | ||||
| DradusContact |
Even the boggo one is well equipped, i had one on holiday last year, was decent for what its intended for. | ||||
| Roadsterstu |
How is the new car then? Hope you are enjoying it. | ||||
| Dr. Hfuhruhurr |
Do you need the luggage space? You could always put another 1.4 in the back, driving the rear wheels. |
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| Bob Sacramento |
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) | ||||
| SambaFi |
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. |