Finance

Matt

Matt

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I have finance on my car and just wondering what possibilties there are with it if anyone can help.

I have no interest in keeping the car at the end of the term so I would be looking to change then. But thats about 3 years away yet.

I like the car and quite happy to keep it till then but say if I decided I wanted to change to a facelift A3 (for arguments sake, could be any make or model really) what happens with regards to the finance? I'd still want finance for the new car.

Not really sure on the ins and outs of it. Obviously if I am going to end up benig asked for more money per month plus a deposit its not going to be worth it. And if I went to smaller, lesser value car how does that work! I guess they still want some sort of payment knowing what these sort of companies are like
 
You'd have to speak to your finaince provider.
Say you bought it on a PCP, you are tied to that finance agreement for that term.
If you wanted to end early to take out a new agreement, they are likely to fine you for the early termination charge, making it non cost viable.

However, if you went with them again, they may waive it??? You'd have to ask.
 
When I've previously had finance and p/xed the car before the agreement has finished, the garage tend to pay the settlement figure (which you need to get from your current finance company) and then you take out a new agreement on the new car. Any equity in the old car is used as a deposit.

That's how it worked for me last time.
 
I have a friend that works for a finance company, she did me a good deal on my BMW, saved me about 4 grand in interest over BMW finance.
If you want her number PM me.
 
I think Matt has 3 years left on his agreement so the penalty will be pretty high now, meaning there is likely negative equity... that's why I said contact the finance company and ask. Also you likely to get a worse deal on the new car if there is fiance penalties to pay off.
 
All you need to do is call the finance company and ask them for a settlement fee. Once you have got the fee you can then see what Audi will offer you for the car as part of a part-ex. With there being so long left you may find you are left in negative equity like somebody has already mentioned. I had my last car on a 3 year PCP and sold it after 18 months and came out quits which i was happy with really.
 
Yeah thats right, 3 years left on the agreement. I wouldn't have a problem keeping the finance with them on but on a new car. The ending up in negative equity is the part that worries me!

Just nice to know your options sometimes. Cheers for the help. Will have a chat with the finance lady at my local Audi dealer next time I'm in.
 
As far as im aware you never keep an existing finance policy, they always settle it with a new policy, could be wrong though. Either way good luck with sorting it.
 
Nothing right now but I can just imagine once I start seeing these facelifts about I might end up wanting one but if I already know its going to cripple me financially I can talk myself out of it!

Only other car I'm liking at the moment is the 500 Abarth. Very cool but very small and probably not a good car to live with after having something like the A3!
 
The 500 Abarth will be an awesome car but the build quality will be in a totally different league compared to the Audi.
 
Yeah its a totally different animal. Dont think I could live with one really unless I was doing smaller mileage
 
On this subject - I have finace payments that have another year and a half to run. If I wanted to sell the car now, clearly I would have to pay off the remainder I owe before I own it outright.

Has anyone on here just sold the car first and used the cash from that sale to pay off the remaining installment and pocket the rest?
 
Ian_C said:
On this subject - I have finace payments that have another year and a half to run. If I wanted to sell the car now, clearly I would have to pay off the remainder I owe before I own it outright.

Has anyone on here just sold the car first and used the cash from that sale to pay off the remaining installment and pocket the rest?
Click to expand...

You need to get permission from the finiance company to do this! But friends of mine have done this in the past.

J.
 
Ah right - you see I thought it would be entirely illegal, since you don't own the car until you've made the final payment!

I have a deal with VWFS, through and Audi dealership.

Anyone else care to elaborate?
 
I was under the impression you couldnt sell the car, then settle since (as you say) it doesnt acutally belong to you, the driver.

However, i sold mine through private sale, had a settlement figure of 9.3k. The car sold for 9.5k!

The finance were happy to have the payment wired through to them directly. It was all very painless.
 
Well i put down quite a big downpayment on mine (almost half) so the finance was quite reasonable. I'm looking to sell the car in a couple of months (not even a year into the finance contract) but because of the big downpayment i made, i'm paying off the finance quicker than the car is depreciating....luckily!

If you've got a LOT of the car tied up in finance you need to get a settlement figure and way that up against how much the car is realistically worth and how much you'll get for it. If it's going to leave you out of pocket i'd hold onto the car if you're happy with it.
 
PNH80 said:
If you've got a LOT of the car tied up in finance you need to get a settlement figure and way that up against how much the car is realistically worth and how much you'll get for it. If it's going to leave you out of pocket i'd hold onto the car if you're happy with it.
Click to expand...

Unless it makes sense to take the hit now.. sumtimes it can be a downward spiral into NE :bye:
 
If the agreement was for less than £25,000 then you are pretty much clear to get out at any time with NO major penalites.

If it was for above £25,000 then it's not regulated by the consumer credit act, so the finance providers are open to charge whatever sort of fee they can dream up.

Best way to get around that though is to terminate one agreement and start a new one, if that is an option to you!

Andrew
 
£20'000 car, of which my downpayment was £16500, £2900 odd to go on the remainder - presumebly they woudn't be adverse to me selling it THEN giving them the remaining £2900 in a one-er would they?

(should I want to sell that is! - my love affair continues but it would be nice to know I can opt out should I feel the need to - its one thirsty beast :-(.....)
 
audi upgrades
Ian,

Sounds OK to me. At the end of the day, all they want is the money. If they get the money they are happy. What ****** them off is when you sell the car, and keep the money. That way they have to go and seize the car from the person you sold it to, which brings a third party into the mix, which they then have to get *you* to pay the associated costs!

Also, it depends what sort of Finance deal you are on. Some deals the money is not secured against the car, so you technically are the owner, and can do as you please.

Andrew
 
Audi (VW Finance) will give you a settlement figure over the phone which stays valid until your next payment is due. You'll also get confirmation in the post so you can take it with you when looking at other cars.
I had a 4 yr term with balloon payment on the Audi and sold it after 15 months. I went for a straight Bank loan on the Beemer as I was never really comfortable with the finance secured on the car.
 
I cant see how it would effect your credit tbh as long as you keep the payments up. Settling early should bear no relevance as long as the company give you the option.
 
As above, I can't see it affecting your credit history as long as the amount is repaid.

I've settled finance earlier than planned before now and, as far as I'm aware, it's not had a detrimental effect on my credit history.
 
Been for a chat at Audi and got my settlement figure. £17,500.

Expecting a phone call before too long to tell me what the crack is with regard to value of my car and getting a new one.

The only S-line they had in was the one below. It was the right colour but wrong engine and dont think I want a Sportback. 2.0T Quattro, DSG, sky roof, sat nav, Xenons etc. etc. 35k!!!!! bit ouf of my price range!

083008114917.jpg

083008114936.jpg

And here is mine for comparison
083008121129.jpg

083008121145.jpg
 
Offered me the settlement figure which means I would have no deposit but at least its not negative equity. Will see, maybe could get them to up it as not interested unless they do.

Going back in a couple of months when they get a common rail 170 in on demo so I can try it out.
 
Have you paid more than half of the finance off? If you have you can simply return the car to the finance company. So if you have paid half or more and the value of the car is less than what is owed you can return the vehicle and be quids in. I have personally done this. I had 2000 outstanding and was being offered 1000 trade. I would therefore have had a 1000 deficit on my finance to clear it. I called the company and returned the car. Effectively getting 2000 for the car. Hope that makes sense.
 
I should hope he's paid half the finance off, this was 6 years ago lol
 
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