MINI2

I love MINI, Laura · Jul 1st, 2007, 07:11 PM

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!

Scrogg · Jul 1st, 2007, 07:16 PM

Settling any sort of finance is easy.

All you have to do is call the finance company (GMAC if it's 0% through a Vauxhall dealer) and request a settlement figure. Because it's 0% you will basically be paying back the full amount outstanding.

Once GMAC have received your payment the car is yours to do with as you please.

If you are looking at part-exchanging the Astra for a MINI then the MINI dealer will even do this for you.

There are no pitfalls, no penalties, and nothing to worry about!

I love MINI, Laura · Jul 1st, 2007, 07:19 PM

So I could take the Astra to MINI trade it in and they could settle my finance for me? Obviously me owing MINI the settlement cost on top of the extra cost of the new car - right?

Scrogg · Jul 1st, 2007, 07:22 PM

Yep!

The only thing they won't actually be able to do is physically get the settlement figure, as GMAC will only talk to your partner or a Vauxhall dealer, so your partner will have to contact them to get it.

I love MINI, Laura · Jul 1st, 2007, 07:25 PM

Interesting. I'll have to investigate further. I'll speak to Vauxhall then and my MINI dealer friend and see just how much more a month all this might cost me!

Is it best to swap to a MINI finance or a personal loan? Is MINI select a reasonable way of doing it considering we had 0% interest on the Astra?

Currently paying around £225 a month and don't this to change too much. I have a bit of a deposit if this will help too

THANKS!

Scrogg · Jul 1st, 2007, 07:30 PM

You certainly won't get 0% from MINI!

The best thing to do is decide which type of finance (Hire Purchase, PCP or Lease Purchase) suits you best, then shop around for the best deal of that type.

Get quotes for all three from your dealer. The Business Manager will try and convince you he is doing you the best deal (if he's any good at his job anyway!

) but whatever you do don't agree to anything until you've compared other lenders.

I love MINI, Laura · Jul 1st, 2007, 07:34 PM

OK! Will do my research - don't like to rush into anything!

Thanks Scrogg - I know your a man in the know! Appreciate it!

Will let you know the outcome when we've decided what we are to do! I know what I want to do. But have to see the figures first!

Scrogg · Jul 1st, 2007, 07:46 PM

Stop it, you're making me blush!

But seriously, if you want any advice just ask. It's fairly well know that dealership finance is my pet hate, so if I can help anyone not get ripped off I will!

I love MINI, Laura · Jul 2nd, 2007, 02:00 PM

Ok so after speaking to a few places, My astra finance has £7900 left to pay and the Astra would only be £7000 trade in if I'm lucky. So that way I would be £900 short with Vauxhall. Thats not good. To sell privately we think its worth £8000-8500 so this way would be about right so might try to sell it privately and see where that goes.

Oh dear!

Scrogg · Jul 2nd, 2007, 04:29 PM

The stupid thing is Laura, if you were looking to part-exchange the Astra against pretty much any other car than a MINI, you would get the £7,900 you need!

Andy P · Jul 2nd, 2007, 05:38 PM

I think you can return the car to the finance company with no negative equity once you are more than 50% into the term - its worth checking with them

Scrogg · Jul 2nd, 2007, 06:55 PM

Quote: Originally Posted by Andy P (original)

I think you can return the car to the finance company with no negative equity once you are more than 50% into the term

Yes you can. It's called Voluntary Termination, but I really wouldn't recommend it!

I love MINI, Laura · Jul 3rd, 2007, 09:12 AM

Going to leave it for a couple of months now and see what happens then.

Currently we are paying off £225 a month 0% apr and the car will only devalue by approx £100 a month so there will reach a point where the value and the left over finance will balance out. We'll wait for then. I can't be doing with a car thats worth less than the finance.

We won't be 50% paid off for another 7 months. Then maybe it will be worth contemplating this again.

Thanks for all your help everyone!

Jul 1st, 2007, 07:11 PM	#1
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	Settling hire purchase for a MINI 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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Jul 1st, 2007, 07:16 PM	#2 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	Settling any sort of finance is easy. All you have to do is call the finance company (GMAC if it's 0% through a Vauxhall dealer) and request a settlement figure. Because it's 0% you will basically be paying back the full amount outstanding. Once GMAC have received your payment the car is yours to do with as you please. If you are looking at part-exchanging the Astra for a MINI then the MINI dealer will even do this for you. There are no pitfalls, no penalties, and nothing to worry about!

Jul 1st, 2007, 07:19 PM	#3 (permalink)
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	So I could take the Astra to MINI trade it in and they could settle my finance for me? Obviously me owing MINI the settlement cost on top of the extra cost of the new car - right?

Jul 1st, 2007, 07:22 PM	#4 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	Yep! The only thing they won't actually be able to do is physically get the settlement figure, as GMAC will only talk to your partner or a Vauxhall dealer, so your partner will have to contact them to get it.

Jul 1st, 2007, 07:25 PM	#5 (permalink)
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	Interesting. I'll have to investigate further. I'll speak to Vauxhall then and my MINI dealer friend and see just how much more a month all this might cost me! Is it best to swap to a MINI finance or a personal loan? Is MINI select a reasonable way of doing it considering we had 0% interest on the Astra? Currently paying around £225 a month and don't this to change too much. I have a bit of a deposit if this will help too THANKS!

Jul 1st, 2007, 07:30 PM	#6 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	You certainly won't get 0% from MINI! The best thing to do is decide which type of finance (Hire Purchase, PCP or Lease Purchase) suits you best, then shop around for the best deal of that type. Get quotes for all three from your dealer. The Business Manager will try and convince you he is doing you the best deal (if he's any good at his job anyway! ) but whatever you do don't agree to anything until you've compared other lenders.

Jul 1st, 2007, 07:34 PM	#7 (permalink)
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	OK! Will do my research - don't like to rush into anything! Thanks Scrogg - I know your a man in the know! Appreciate it! Will let you know the outcome when we've decided what we are to do! I know what I want to do. But have to see the figures first!

Jul 1st, 2007, 07:46 PM	#8 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	Stop it, you're making me blush! But seriously, if you want any advice just ask. It's fairly well know that dealership finance is my pet hate, so if I can help anyone not get ripped off I will!

Jul 2nd, 2007, 02:00 PM	#9 (permalink)
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	Ok so after speaking to a few places, My astra finance has £7900 left to pay and the Astra would only be £7000 trade in if I'm lucky. So that way I would be £900 short with Vauxhall. Thats not good. To sell privately we think its worth £8000-8500 so this way would be about right so might try to sell it privately and see where that goes. Oh dear!

Jul 2nd, 2007, 04:29 PM	#10 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	The stupid thing is Laura, if you were looking to part-exchange the Astra against pretty much any other car than a MINI, you would get the £7,900 you need!

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Jul 2nd, 2007, 05:38 PM	#11 (permalink)
Andy P MINI2 Master Join Date: Aug 2006 Location: Stamford, Lincs Local Time: 02:53 AM Posts: 1,701 Offline	I think you can return the car to the finance company with no negative equity once you are more than 50% into the term - its worth checking with them

Jul 2nd, 2007, 06:55 PM	#12 (permalink)
Scrogg What's Next? Join Date: Jul 2006 Location: Gloucester Local Time: 02:53 AM Posts: 15,062 Offline	Quote: Originally Posted by Andy P (original) I think you can return the car to the finance company with no negative equity once you are more than 50% into the term Yes you can. It's called Voluntary Termination, but I really wouldn't recommend it!

Jul 3rd, 2007, 09:12 AM	#13 (permalink)
I love MINI, Laura MINI2 Master Join Date: Dec 2003 Location: Portsmouth,Hampshire Local Time: 02:53 AM Posts: 3,190 Offline	Going to leave it for a couple of months now and see what happens then. Currently we are paying off £225 a month 0% apr and the car will only devalue by approx £100 a month so there will reach a point where the value and the left over finance will balance out. We'll wait for then. I can't be doing with a car thats worth less than the finance. We won't be 50% paid off for another 7 months. Then maybe it will be worth contemplating this again. Thanks for all your help everyone!