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| settling hire purchase for a MINI | ||
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Moderators: Dave, cooper_sport, Neil the Hat, BlackFerret, Matt
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| Author | Post | ||
| Laura |
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  Registered Member #85 Joined: Sun Feb 19 2006, 12:00AMPosts: 90 | Dear All, I'm very naive and innocent when it comes to finance and borrowing cash - I don't have any credit cards or any real debts apart from the deadly mortgage - to be honest it all scares me! I need your help and your advise. I've searched through this section and can't seem to see my question. I appreciate honest opinions from everyone especially people who aren't earning commission from this decision! I sold my MINI One 10 months ago and since then I've been dying to get another MINI. Now my partner has suggested that maybe swapping his 55reg Astra Sxi for a R53 56reg Cooper S. Now our Astra is approx 1.5 years old (Jan 06) and we have a 3 year 0% APR Hire Purchase finance contract on it. We owe approx £8.5k still and the car is worth about £8.5k I think. What is the best way to go about closing this scheme - what may be the pitfalls to worry about? Will there be a massive fee for ending the contract early? Its 0% apr so there shouldn't be really should there? Need to understand all financial options before really going ahead! Thanks for any help and advise you guys can give! THANKS - very excited about this prospect but this means I may have to share a new S with my partner! | ||
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| Dave |
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Mini Turbo'd   Registered Member #140 Joined: Mon Mar 13 2006, 12:00AMLocation: Southampton Posts: 2487 | Hey Laura! It really does depend on what you signed really. The agreement form should set out any charges and the rules for terminating the contract early. In most cases they wont charge you and if they do its usually a months interest. This is where it gets interesting though! If you want to sell the car privately you need to phone the finance company as technically you dont own the car so you need their permission to end the contract and sell the car. Does this HP agreement have a final settlement figure? MINI Project 370hp and counting... : MINIProject.co.uk | ||
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| HyperViper |
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  Registered Member #358 Joined: Fri Mar 02 2007, 12:00AMLocation: Alton, Hants Posts: 1281 | Hi laura I'm not 100% sure but there may be a further twist if you try and sell privately. If you need the sale proceeds to pay off the debt, then any HPI check by a purchaser will show up finance on the car. That could put buyers off as they may suspect you will pocket the cash and not repay the debt. As Dave says, the car is technically owned by the finance co. so they could reposess from the new owner! I would advise talking to the finance people to get your anwers. Check if they would take payment from a 3rd party (the buyer) in the event you sell privately - that way any buyer knows the loan is repaid. Sad to say as it will cost, but the simplest and easiest way is to trade in. Hope this helps and good luck, Phil Image: http:// www.scnm.co.uk/ e107_plugins/ coppermine_menu/ albums/userpics/ normal_Phils% 20sig.jpg Another MK Photos Production | ||
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| Laura |
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| Registered Member #85 Joined: Sun Feb 19 2006, 12:00AMPosts: 90 | Hi guys, Thanks, We owe £7900 on the Astra and after a word to my friendly dealer they think they will only offer £6500-7000 on trade in. This will mean a £1400-900 loss! Not sure Shawn will go for this! To be honest my old MINI One I sold had finance on it and the new purchaser wrote out a cheque to my finance company and another to me for the left over cash. It was quite easy and I was happy that we were all happy. So we think that privately sold it could go for £8500 - 8000 which will mean we are at least covering the cars cost. Will have to think about it. Not much to put towards a new MINI though. | ||
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