downgrading on finance

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philstyle

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Hello mbb buddies, im once again in need of your expertise. If you purchased a second hand vehicle on finance, is it possible to trade in your vehicle for something less extravagant with the view of possibly decreasing monthly instalments and maintenance. Any feedback would be hugely appreciated
 
Yes. But, depending on how long you've been paying, you might owe more on your existing vehicle than what its worth.
 
Possible, sure... but how practical it would be is a product of a few variables. The biggest question that needs answering is how much you can sell (or trade in) your vehicle for in relation to what you still owe on the finance. If you've had the car for 3 years or less you'll probably be offered less than what you still owe, which will leave you with a shortfall that'll need to be paid in over and above the purchase price of another vehicle.

What vehicle do you have (make, model and year), what mileage has it done, and how much do you still owe on it?
 
Its a 2009 Peugeot 207 gti with 80 000km, and I actually bought it two months ago... so im basically screwed and stuck with it??? Would I have to deal with the bank or the dealer I want 2 purchase the next vehicle from?
 
philstyle said:
Its a 2009 Peugeot 207 gti with 80 000km, and I actually bought it two months ago... so im basically screwed and stuck with it??? Would I have to deal with the bank or the dealer I want 2 purchase the next vehicle from?
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Just figure out how to keep it... You are stuck with it for now.
 
You are going to take a big knock trying to sell that so short after buying. You will have to stick it out at least two years just to break even with Finance left, assuming you had 10% deposit.
 
Come on guys, can I not even get another car on the same instalment im paying currently? The pug is being fixed at the dealer I bought it from so even when they done i've got 0% confidence in the car anymore
 
philstyle said:
Come on guys, can I not even get another car on the same instalment im paying currently? The pug is being fixed at the dealer I bought it from so even when they done i've got 0% confidence in the car anymore
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There's very little chance that you'll get what you owe on a trade in for another car.
 
philstyle said:
Come on guys, can I not even get another car on the same instalment im paying currently? The pug is being fixed at the dealer I bought it from so even when they done i've got 0% confidence in the car anymore
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Like I said, take it to the dealer whre you want to purchase another car. If the other car is cheaper you may find you can swing a deal, even if they have to load the price on the new car to settle the credit shortfall. I've done deals like this in the past. You need to gt the dealer principle and the f&i guys involved.
 
philstyle said:
The pug is being fixed at the dealer I bought it from so even when they done i've got 0% confidence in the car anymore
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If there are serious problems with the car, maybe think about a different approach. Ask people here for advise on the CPA... Think you are still within certain rights after 2 months.
 
Start by finding out what the settlement would be with the bank.

Then find out what it would be worth to trade in...odds are there will be a shortfall in which case it doesn't make any sense.

Then you need to offset the cost of the new car to come to a conclusion.


Pug = R100k settlement.

Trade = R80k

"New" Car = R60k

You are pretty much where you started and might as well just keep paying for the Pug.

Also what's this "no confidence" what exactly is wrong with the car that could be so bad you need to immediately replace it? Sounds more like a bull**** excuse because you are struggling to pay for it and want a reason to get rid of it to convince yourself.

If it's two months old and you bought it from the dealer and not privately, then they should be fixing it at no cost to you.

Of course you never should have bought a French car in the first place...but nobody ever listens.

Volvo/French/Italian for Life!
 
ahoudet said:
He can but as mentioned below, the shortfall will be loaded onto the new car and as such will keep the monthly repayments where they are
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Is your forum different to mine? Everything is above instead of below?

pinball wizard said:
Unless he finds a substantially cheaper car...
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And a dealer willing to trade in a much more expensive car on a cheaper one.

Having been in a position to do that before the only way to get it done was to take a serious knock, or sell it privately.
 
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