Financial Predicament/ Advice

[zizo911]

Good Day All

As always looking to seek some advice from my fellow forumites on a certain topic.

Two years ago, I purchased a new vehicle on my step dads name, since we needed a vehicle and I was unable to purchase one at the time since I hadn't gained a good enough credit record yet. It was a brand new Renault Clio 4, although I myself wouldve been happy with a second hand car, I though of my family and their needs before mine. Six months later, my step dad decides to purchase a vehicle, but because he already had two vehicles on his name, he asked if I could purchase it on mine. Which I happily did, since he did the same 6 months ago... Fast Forward to 2018, my mom and step dad are going through a horrible divorce, I have somehow been dragged into it, since my mom does not work and I am the sole breadwinner in the house...Now to make matters worse, my step dad then asked for the Reanult back and that gave the vehicle that he purchased to me since it was legally on my name. It is a BMW 130i M Sport, personally I do not want it since it is quite an expensive luxury car. My question is though... would it be more advisable to keep the car, it is 8 years old, but has been well looked after by all the owners, including me now, since I only take it to BMW for service.

The settlement value on the vehicle at the bank is R145000, which is quite a large sum of money. Should I rather stick it out and battle with an 8 year old car or try to sell it for the settlement value.

Thanks in Advance

 

[supersunbird]

I have long ago learned not to buy cars for other people in my name.

If you can sell it for the settlement amount that's the best option, in my opinion.

 

[xrapidx]

Won't you have to buy another vehicle if you sell it?

 

[saturnz]

if you have a wife that is pregnant then its best not to sell the car because the car can be an asset in the short term

 

[UrBaN963]

Good Day All

As always looking to seek some advice from my fellow forumites on a certain topic.

Two years ago, I purchased a new vehicle on my step dads name, since we needed a vehicle and I was unable to purchase one at the time since I hadn't gained a good enough credit record yet. It was a brand new Renault Clio 4, although I myself wouldve been happy with a second hand car, I though of my family and their needs before mine. Six months later, my step dad decides to purchase a vehicle, but because he already had two vehicles on his name, he asked if I could purchase it on mine. Which I happily did, since he did the same 6 months ago... Fast Forward to 2018, my mom and step dad are going through a horrible divorce, I have somehow been dragged into it, since my mom does not work and I am the sole breadwinner in the house...Now to make matters worse, my step dad then asked for the Reanult back and that gave the vehicle that he purchased to me since it was legally on my name. It is a BMW 130i M Sport, personally I do not want it since it is quite an expensive luxury car. My question is though... would it be more advisable to keep the car, it is 8 years old, but has been well looked after by all the owners, including me now, since I only take it to BMW for service.

The settlement value on the vehicle at the bank is R145000, which is quite a large sum of money. Should I rather stick it out and battle with an 8 year old car or try to sell it for the settlement value.

Thanks in Advance

If you’re in JHB, PM me the vehicle details and I’ll see what I can do to help.

 

[SauRoNZA]

Is the installment any different between this car and the Renault when it comes to money in your pocket every month?

It obviously uses more fuel.

The question you really need to ask yourself is whether you can sell it and break even or make a profit and then get away with paying less as a whole or monthly for another car.

Looking at Cars.co.za it should easily fetch more than the settlement value so you should be able to walk away making a profit.

Not sure where the "battle" comes in. Unless the car is problematic or doesn't fit your needs with regards to how many seats and or doors it really isn't much of an issue to live with it.

 

[I.am.Sam]

if you have a wife that is pregnant then its best not to sell the car because the car can be an asset in the short term

he isnt that type

best is to sell that car and settle

cut your losses of the other car and start fresh

that way or suffer paying the bmw off

 

[zizo911]

If you’re in JHB, PM me the vehicle details and I’ll see what I can do to help.

Unfortunately I'm in Cape Town.

 

[zizo911]

Won't you have to buy another vehicle if you sell it?

Yes, but a much cheaper vehicle.

 

[zizo911]

Is the installment any different between this car and the Renault when it comes to money in your pocket every month?

It obviously uses more fuel.

The question you really need to ask yourself is whether you can sell it and break even or make a profit and then get away with paying less as a whole or monthly for another car.

Looking at Cars.co.za it should easily fetch more than the settlement value so you should be able to walk away making a profit.

Not sure where the "battle" comes in. Unless the car is problematic or doesn't fit your needs with regards to how many seats and or doors it really isn't much of an issue to live with it.

They were bascially the same... but I now have the responsibility of looking after my two younger siblings at school as well and also my mom, since I'm the only one working in the household.
I have taken the vehicle to dealers, but they obviously are only offering me about R105000 which is not enough to settle the car. I'm just worried about selling privately, since it is a performance car and people may want to take joy rides with it,but any advice is welcomed.

 

[saturnz]

he isnt that type

it was a joke

 

[Tman*]

If looked after properly, as you state it is a pretty reliable car, even at higher mileage. Heavier on fuel than the Clio I am sure, but maybe less problematic in the long run than a french car.

Unless you can get a very good offer on the car, I wouldn't bother to sell. Stick it out for a few years, and keep looking after the car, it should look after you too.

 

[konfab]

They were bascially the same... but I now have the responsibility of looking after my two younger siblings at school as well and also my mom, since I'm the only one working in the household.
I have taken the vehicle to dealers, but they obviously are only offering me about R105000 which is not enough to settle the car. I'm just worried about selling privately, since it is a performance car and people may want to take joy rides with it,but any advice is welcomed.

Hmm, if you can't get settlement+deposit (for another car) then you are better off keeping the car and driving it like a granny.

 

[zizo911]

Hmm, if you can't get settlement+deposit (for another car) then you are better off keeping the car and driving it like a granny.

Thanks, that's a good point.

Here an image of the vehicle.
Basically this car in white and stickers as well as a lower mileage. https://www.autotrader.co.za/used-cars/bmw/1-series/2010-bmw-1-series-130i-5-door-fpa-163a334563d5411f85beac02af1bbef7?search-path=L21ha2Vtb2RlbC9tYWtlL0JNVy9tb2RlbC8xIFNFUklFUy95ZWFyLzIwMTAtdG8tMjAxMC9pc3VzZWQvdHJ1ZS9zZWFyY2g&result-index=8

 

[ToxicBunny]

If you can’t break even on the vehicle and it doesn’t break your bank balance to run it, I would keep it until you can break even on it

 

[airborne]

I'd check up on how reliable those models are, an 8yr old BMW can potentially generate some pretty hectic repair bills.

I'm assuming because they are financed you can't do a change of ownership on the Clio and BMW, you get the clio in your name, stepfather gets his BMW in his?

 

[zizo911]

I'd check up on how reliable those models are, an 8yr old BMW can potentially generate some pretty hectic repair bills.

I'm assuming because they are financed you can't do a change of ownership on the Clio and BMW, you get the clio in your name, stepfather gets his BMW in his?

Unfortunately not, and he also does not want to.

 

[SafariTin]

Shame man, it seems like the stepdad is screwing you over badly. Is the Clio paid up? If so, he is getting a paid up car worth x amount and you're getting a car that is worth R40,000 less than what is owed on it?

Have you considered bringing this up with your mom's divorce lawyer to see whether there is some way for you to not be impacted?

 

[zizo911]

Shame man, it seems like the stepdad is screwing you over badly. Is the Clio paid up? If so, he is getting a paid up car worth x amount and you're getting a car that is worth R40,000 less than what is owed on it?

Have you considered bringing this up with your mom's divorce lawyer to see whether there is some way for you to not be impacted?

The clio is still under finance as well... unfortunately the bank says it is still my responsibility since I am the one who signed the papers.

 

[rietrot]

You win all the way. The BMW is way better than a clio. Lol why would anyone prefer the clio.