Some adviice : Residual, no money, new car

[Hamster]

How the hell do people end up in these situations?!?

Beats me. I cannot believe that in this day and age people aren't more careful/"scared" with their money.

 

[Cray]

Eish car salesmen, remember walking out of an Audi dealership because the salesperson insisted on asking me how much I wanted to pay per month rather than telling me the actual cost of the car.

 

[Brawler]

Makes me wonder how finance was approved on such a car.

 

[ProfA]

stupid people deserve to be poor.

 

[Pitbull]

I'm not sure how ones financial situation can change so drastically in a few months without retrenchment or something equally as devastating?

I agree 100%

Beats me. I cannot believe that in this day and age people aren't more careful/"scared" with their money.

He could afford it when he was approved. Something changed as he maybe lost his job, took a pay cut due to production figures or something. Things change.

Makes me wonder how finance was approved on such a car.

I'm sure he could afford it when he applied for the finance.

stupid people deserve to be poor.

That is very harsh. Let's hope you don't lose your job and have a bond, school fees and car payments that needs to be made. This can happen to anyone of us. I agree he was stupid buying a 520i to begin with. But he didn't know his situation was going to change.

 

[PsYTraNc3]

So judgmental...

How would finance have been approved if he wasn't able to afford installments?
They might not be as strict as they should be but banks do follow the laws against reckless lending somewhat.

You have to fill out all expenses, income and agree to credit checks before finance is approved.
If your installment outweighs what you are left with after all expenses listed, finance won't (or should not) be approved.

I think it is very possible that this person could have gotten into some financial trouble.

I have a family member in a similar situation after bad business decisions.
Luckily he bought his car cash when things were going well and now going to sell his machinery and start over.

 

[Gaz{M}]

R550k over 60 months at 35% residual and 11% interest is about R9500pm. So he is probably in that ballpark in terms of the finance deal.

That said, 520i's are on autotrader for around R470, so trade in probably around R420k. Yeah, he will take about R100k knock.

 

[Coasti]

Stage a hijacking

 

[FiestaST]

Stage a hijacking

Some lateral thinking right there

 

[Pitbull]

Stage a hijacking

Worse advice ever.

Insurance company will investigate it and they will see he's in financial trouble leading up to the hijacking. This will not turn out well.

 

[Dr Who]

I Agree with Pitbull. In life S&%T happens and bad decisions are made. What really counts is how get picks himself up after this.

My suggestion without knowing the details:
1) Sell his vehicle however he can, and see what the knock would be.
2) Try re-finance his old car to cover the knock which is a paid off car
3) If he needs a vehicle then try but an older second hard car which is cheap

Sit in this position and who knows maybe change vehicles in 2 years or so but without a residual. I have personally been involved in cases where 500 staff get retrenched or commission gets restructured and suddenly your earning position is materially different.

life can change in an instant.

Good luck.

 

[JV_011_]

Worse advice ever.

Insurance company will investigate it and they will see he's in financial trouble leading up to the hijacking. This will not turn out well.

Can they do that ?

I would go for it even, or get it written off. I don't know how you going to do that without injuring yourself though

 

[Mike Hoxbig]

Still can't believe that a 30 year old bought a 520i. Talk about giving up on life and getting old before your time...

 

[Pitbull]

Can they do that ?

I would go for it even, or get it written off. I don't know how you going to do that without injuring yourself though

You will be amazed at what lengths insurers will go to in order to avoid paying claims. They interview neighbours, check financial info like ITC and the likes to try and find smoke. Then chase the fire.

 

[Pitbull]

Can they do that ?

I would go for it even, or get it written off. I don't know how you going to do that without injuring yourself though

You will be amazed at what lengths insurers will go to in order to avoid paying claims. They interview neighbours, check financial info like ITC and the likes to try and find smoke. Then chase the fire.

 

[Hempiz]

First - go to the bank and request a settlement letter. Its normally very easy to get and will give you the exact value he needs to find.

 

[FiestaST]

Trade in the 520i for a M135i full house

 

[Bismuth]

I almost bought a new car recently (look at my other threads), but after doing my own affordability assessment, decided against it and decided to keep on driving my old, but paid-up, Honda. But don't get me wrong, I burnt myself this way in the past, and am still pay THOSE school fees.

I would do what has already been stated in this thread, get a settlement letter from the bank, sell the car for as much as you can, and take a knock on the difference between the two. Don't let it get to the point where the bank sends the debt (car?) collectors. Rather contact them and see what arrangement can be made.

B

 

[JackWhite]

1. Sell the 520i
2. Refinance the paid off car.
3. Start all over again

 

[Brenden_E]

His mother is paying his bond and he still has the car. Should have gotten rid of it yesterday!