Bored of car. What to do. ho hum

[Oakey]

got the agreement here;

£13k total

£900 Deposit, 1st payment £340, £220 there after. Final payment of £2800

Settlement is £9500.

So would it really be better to pay 50% and hand it back? Or get loan, pay it all, part ex for £7500?

Mileage is agreed at 10,000 per annum.

Interesting part at the end of the agreement;

"If you have obtained unsatisfactory goods or services under a transaction financed by this agreement you may have the right to sue the supplier, us, or both. Similarily, if the contract is not fulfilled, perhaps because the supplier has gone out of business, yuou may still be able to sue us"

Anything in there I can use to get out of this agreement? MG Rover going bust, warranty no longer honoured, car is faulty and problematic and I shouldn't have to pay for repairs, etc.

[Zak33]

"If you have obtained unsatisfactory goods or services under a transaction financed by this agreement you may have the right to sue the supplier, us, or both. Similarily, if the contract is not fulfilled, perhaps because the supplier has gone out of business, yuou may still be able to sue us"

Anything in there I can use to get out of this agreement? MG Rover going bust, warranty no longer honoured, car is faulty and problematic and I shouldn't have to pay for repairs, etc.

most HP agreements have that in. You see they own part of the car, so you can pursue THEM if the dealer in question doesnt help you. Its one of the reasons that HP can be a GOOD THING. If you buy a car on HP that turns out to be a ringer, or thats just knackered, you have much more power because the HP company also wants it sorted and they can pursue the selling dealer for you. However you should NEVER miss a payment while thats going on, cos they'll still black list you.

Will do the numbers in a mo

[Zak33]

that doesnt add up dude.

You said 3 years. right?

35 x220 = 7700 plus one of 340 (quite normal) = £8040
plus settlement of £2800 plus 900 dipper = total 11740

No way.

More likely 4 years....

47x220 = 10340 plus 340 = 10680 plus 2800 plus 900 = £14380 total amount payable

[Zak33]

can you scan it for me? PM for email addy

[Oakey]

I'm at work right now, will have to do it later. I copied the figures as they were on the sheet. the finance was 10% I think, or maybe 9%

That £11740 might be correct... however there was a figure for £13k on there.

[Oakey]

Zak: here are the figures:

1 x £340

41 x £220 (41??! Wtf, I was sure I asked for 3 years!)

1 x £2805

Car is £10600

Deposit is £900

Total payable is £13184

This any better?

[Zak33]

yes better. OK, 3 and a half years....typical car salesman...changed the timefor you and "forgot" to mention it. Oh well, you signed it, eyes wide open, so not a leg to stand on sadly.

OK...Total Amount Payable is £13184, so if you make it HALF way through that, you can hand the car back and not owe the other half...so if you have paid total of £6592 you can get away from it.

Lets look deeper.

You've paid £900 plus £340 plus 1 year, so 12x £220 = £3880. So no where even close to half the TAP which is £6592...you're £2712 short.

However....you were offered £7500 and owe £9500 SO to get out of it in part exchange means you'd need to borrow £2000 MORE than your new car anyway.

Still...thats £700 better than what you've got on the other route.

HOWEVER.....we need to "balance" this....walk the tightrope a bit.

That car WILL drop more than £220 for the next few months. Sorry, but it will. So I dont see your EQUITY getting better...I see it getting worse.

My plan would be this and this is subject to you checking the figures yourself

Keep the car, paying the monthly payments as you are, UNTIL you have reached the HALF THE TOTAL AMOUNT PAYABLE.

We worked out that you were £2712 shy of this earlier /\ up there.....how many moths will that take?
£2712 divided by £220 per month = almost exactly 12 mnoths.

So ..guess what , big boy? You need to stay bored for 12 months and keep it.

THEN when you have worked out that you've paid exactly HALF THE TOTAL AMOUNT PAYABLE, you go and see a salemen again JUST IN CASE they will offer you more money in part ex than you owe (not likely but possible..market might change in ayear) and if NOT then you use the HALF RULE and terminate early and hanfd it back.

In the mean time you MUST NOT BE TEMPTED to pay more per month into that deal. If you DO havespare dough, keep it aside for the next deposit. If you hand the car back in 12 months you'll have no deposit and will need one. DONT BE TEMPTED to pay more per month to clear it early, cos its droppig so fast, if you D hand it back early, you'll have lost that dough AND not had the car for long enoughto get value out of it.

All clear?

Thats thesesible financial route out of it. Of course, finances dont always play abig part...if you WANT a new car, and can afford it, then you take the £7500 offered, and borrow ALL the moey for your new car PLUS another £2000 to clear thatone.
But you will need a Bank loan (asyou've mentioned already) for that cos no reputable car finance deal will offer a £2000 MORE than a cars worth without overcharging yuo to DEATH in interest for risk.

[Oakey]

It looks like I have to keep the MG for another 4-6 months anyway, can't get insured on a DC5 until I've got 12 months license under my belt (yet oddly, can get insured on a Leon Cupra R, same bhp, same value :| ) By then I'd be nearly 24 and have some NCB too.

You should bear in mind my employer pays £150 towards my car each month, so it's not costing *me* too much. I've already applied for a loan to settle the debt. What would you suggest? Put that loan money into a savings account for 4-6 months until I come to part with the MG?
However, if I settle early, do I not end up paying less? £9500+£1900 that is on it = £11400. As opposed to £13184? Btw, I've only had the car since Dec 2004, so I've paid £900 + £340 + 3(4?) x £220.