Part ex car for cheaper car

[pa55ive]

Just abit of advice really.

If i was to part ex my car. Part-ex value 11k. Dealer resale 12.5k

What sort of price would I likely get if I was to sell it to them or buy a cheaper car from them for say 9k? Hope all that makes sense

Currently have 7k left on 0% finance.

Never done it before and the internet doesn't show many answers. No doubt somebody on OCUK must have done something similiar

 

[arcamalpha]

Dealers don't care about value, they care about profit/margin.

So if there's profit in the £9k car then they're happy. Anything they make on your trade is a bonus (to them!).

 

[rodenal]

The trade value doesn't change whether you're going up or down to the next car, so in theory it's no different.

If you're seeing dealers retailing similar cars for £12.5k though I'd expect your px to be more like 9.5-10k - even if you mean non franchised then I'd still expect them to want at least £2k headroom at that value

 

[pa55ive]

Cheers just weighing up a few options will prob keep it & pay it off. Seems logical with 'lifetime' time warranty.

Thanks for the info

 

[iaind]

Best bet would be to sell privately. You can either ask permission to sell it and tell them you have an offer of £X to buy it, or explain to the buyer that it'll show as having finance outstanding and pay it infront of them

 

[crinkleshoes]

What do you want to change?

If you have 7k left on finance... do you realise that you will have to pay that off in full before you can do what you're suggesting?

They will HPI check the car and make sure that there is no outstanding finance...

 

[Brookert]

What do you want to change?

If you have 7k left on finance... do you realise that you will have to pay that off in full before you can do what you're suggesting?

They will HPI check the car and make sure that there is no outstanding finance...

I thought some dealers were prepared to settle finance of trade-ins? That's the impression I got anyway.

 

[crinkleshoes]

I thought some dealers were prepared to settle finance of trade-ins? That's the impression I got anyway.

Guy says he has a car with part-ex value of 11k

Wants car for 9k

Has outstanding finance of 7k

That leaves 5k remaining... dealer won't do anything unless that's settled or the OP gives them his car + 5k... he won't be able to continue the finance agreement.

 

[rodenal]

Of course the current agreement will be settled (by the dealer) - I'm not sure that was ever in question.

He will be making up the new balance either through another agreement or through sums paid to them acquired by whatever means he feels suitable, there's nothing remotely difficult about it

 

[crinkleshoes]

So my original question remains... why does he want to change?

No one else has asked that

 

[pa55ive]

Current situation is basically me and the misses are going our seperate ways and I'm hopefully buying her out (house). Just looking at ways to reduce my monthly spending so I'll be able to cope with a single wage paying for the mortgage etc.

I'll have the money to settle the finance by feburary however its the same balance she wants to be bought out with

In my eyes keeping the house is more important than a chunk of metal as I've made money since we bought it. She doesn't want her money till May at the earliest as we still live together.

Abit more background mortgage term ends in Jan 2017 early repayment charge is £6700 so would be daft to sell now which we both agree on.

I think ill just keep saving a little an assess the situation when she decides to depart although I doubt very much I'll have both solutions by may unless I win on the horses

Thought Id get a different point of view on the situation rather than make any rash decisions, so I have installed my faith in you guys and girls.

 

[iaind]

ERC of 6700 with 1 year to go!!?

Fixed rates tend to have 3/2/1% or 5/4/3/2/1 etc - so 1% would be expected at this time. Either you have a 670,000 balance so a few grand on the car is peanuts. Or you have a horrendous deal on the mortgage or (most likely) have assumed that the 5/3% ERC applies for the term of the mortgage.

If you really want to save money, it sounds like you have a few grand of equity in the car - you could sell it and just buy something for a couple of grand with the change. Unless you do mega miles then you'll get something perfectly adequate for that much.

Mortgage fixed rates are so silly low at the moment that you may find you can remortgage in your sole name, covering the ERC and save quite a considerable sum over your current one. Without knowing the exact numbers it's hard to say, but between those two things you should be able to make a good dent in the outgoings

 

[pa55ive]

ERC of 6700 with 1 year to go!!?

Fixed rates tend to have 3/2/1% or 5/4/3/2/1 etc - so 1% would be expected at this time. Either you have a 670,000 balance so a few grand on the car is peanuts. Or you have a horrendous deal on the mortgage or (most likely) have assumed that the 5/3% ERC applies for the term of the mortgage.

If you really want to save money, it sounds like you have a few grand of equity in the car - you could sell it and just buy something for a couple of grand with the change. Unless you do mega miles then you'll get something perfectly adequate for that much.

Mortgage fixed rates are so silly low at the moment that you may find you can remortgage in your sole name, covering the ERC and save quite a considerable sum over your current one. Without knowing the exact numbers it's hard to say, but between those two things you should be able to make a good dent in the outgoings

Yeah was thinking along the lines of selling then getting a 3k car just an option but ill prob come to that in may when ive paid more off. Around 17k a year mileage.

250,000 house in jan 2014
30 year mortgage 3 years fixed with 10% down at 4.4%
Mortgage 225,000

Houses on our estate (same 2002 build) selling for 290-300,000 basingstoke.

Theres a lot of equity in the house. She didn't put a penny down as deposit hence the low 7k she wants.

If I remortgage in Jan 2017 with the current loan to value even with .5% interest rise thats going to happen soon, i'll be paying 850 a month at 2% as opposed to the 1130 now.

I can potential make abit of money if I sell from living in the house for 3 years so I'd be stupid to sell now with her an split the equity after my deposit is returned.

Hope that makes sense

 

[iaind]

The only thing that doesn't make sense is the early repayment charge. I'm pretty confident it'll be 1% now, so it'll be about 2k. You could add the 9k (7 for your ex, 2 for the ERC) and remortgage today. Assume your balance is about 210k, you'll be mortgaging 219 against 300. HSBC have some very good rates, would work out at 859 on a 3 year fix or 886 on a 5 (30 year term, few free).

Or if you'd be tempted to sell up then you could do the same on a tracker so wouldn't have any early repayment charges down the line.

I am not a financial advisor, but you should speak to one! If £800ish is affordable for you then it sounds like a no brainier. I just did something similar, was 2 years into a 5 year fix (although half of it was ported from a previous mortgage) so had about 3k early repayment charges. Even adding them to a new mortgage, I still knocked £100 off my payments and brought the term down by 10 years!

On the car front, a lot of people here don't seem to live in the real world. Yes, he finance will say you need their permission to sell it, yes an HPI check will show outstanding finance. You advertise it and explain to the buyer that you have outstanding finance. You agree a deal on the basis that you'll pay it off. I've done this before, I sat with the guy and transferred money to him. He called the finance company and paid it off, then handed me the phone so they could confirm to me that it was settled. We signed the V5 and I drove away... It's not an uncommon way of doing it

 

[pa55ive]

The only thing that doesn't make sense is the early repayment charge. I'm pretty confident it'll be 1% now, so it'll be about 2k. You could add the 9k (7 for your ex, 2 for the ERC) and remortgage today. Assume your balance is about 210k, you'll be mortgaging 219 against 300. HSBC have some very good rates, would work out at 859 on a 3 year fix or 886 on a 5 (30 year term, few free).

Or if you'd be tempted to sell up then you could do the same on a tracker so wouldn't have any early repayment charges down the line.

I am not a financial advisor, but you should speak to one! If £800ish is affordable for you then it sounds like a no brainier. I just did something similar, was 2 years into a 5 year fix (although half of it was ported from a previous mortgage) so had about 3k early repayment charges. Even adding them to a new mortgage, I still knocked £100 off my payments and brought the term down by 10 years!

On the car front, a lot of people here don't seem to live in the real world. Yes, he finance will say you need their permission to sell it, yes an HPI check will show outstanding finance. You advertise it and explain to the buyer that you have outstanding finance. You agree a deal on the basis that you'll pay it off. I've done this before, I sat with the guy and transferred money to him. He called the finance company and paid it off, then handed me the phone so they could confirm to me that it was settled. We signed the V5 and I drove away... It's not an uncommon way of doing it

Unfortunately its wrote in the t&c its £6700 a girl I work with was in similar postion although she had only 8 months in hers it was £5500 suppose that how they make there money I guess.

Being honest I was pretty devastated when she called it a day and living everyday with her makes me realise its the best decision for both of us

She's pretty muture about it in the sense she prepared to wait for her money to buy her out. I think that when I do have the money i'll see a financial wizard then and see what happens I just hope barclays allow me to keep the mortgage on myself if not I think we will remain here till Jan 2017.

If i was to say sell the house in November 2016 and move out just before the mortgage term date, would I be able to just pay it off a month early or would that be the same as having to pay the early repayment charge.
For example move out on 10th jan and the final payment so to speak is 28th would i be able to pay it as normal even though I don't live there. Sorry if its abit of a noob question just unsure.

Im guessing I'll have to move after the fixed term date when it moves to the standard variable rate.

Yeah get the finance bit, people don't live in the real world you're quite right.

What is the likelyhood that barclays would allow me to keep the mortgage for the remaining year without taking out another mortgage?

 

[iaind]

Have you actually called them for a redemption figure? I'd be hugely surprised if it was su much, they always decrease with time.

The 3 years is just the fixed rate, after the fix ends you go onto the standard variable rate - there's no need to take out a new one (although is often sensible).

 

[pa55ive]

Oh ok I'll have a look into that closer the time at the moment it suits me but come may or tomorrow who knows whats around the corner. I dont particularly want to move this year, and getting her out with 7k is a bargain.

Thanks for the advice.

 

[crinkleshoes]

Thanks for the explanation... don't know whether to say congratulations or commiserations on the situation... I'll leave that one up to you

As for the car though, I wouldn't necessarily want to shift cars and finance around like that... I'd think that the monthly payment wouldn't adjust a huge amount - although that depends on the length of the finance term.

If you were to extend the extra 5k you would have to re-finance on top of the deal you're considering... you'd most likely end up with interest and over 3/4/5 years to reduce the monthly payment - I imagine you'd be getting close to spending the 7k anyway in total.

Maybe the slightly reduced monthly payment is worth it to you though, which would be fair.

If she would consider it, given that you mention you have a similar amount coming in February... perhaps it might be worth asking your misses if you can either use it to pay of the car and pay her monthly or do something like a 50/50 split of it to reduce the monthly payments in a similar vein to what you'd otherwise be looking for.

That way you don't have to contend with a new second hand car too, which could send larger bills when it's out of the warranty period.