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