car down grade... Help!

jargarbo

Hi everyone! I need advice as I need to down grade my car.

I have an 08 Mazda MX5 hard top. With all the cutbacks now I will be having difficulties with my finances. One solution that I was thinking is to give up this car as I'm paying quite a huge amount per month and change it to an 05 C180 costing €19,950. I still have €27,200 balance for my MX5 as it's under finance. When I asked the garage how am I going to settle this down grade he replied, I have to pay €3,000 in exchange of my car! I was shocked and cant understand why I have to pay more for an 05 C180 the fact that they're not going to buy my car from the finance company.

What other option can I do to facilitate this down grade as I really have to cut my expenses?

Please help. Before the additional cutbacks comes in... at least i'll be able to change my car before the implementation.

Mr Benevolent

'Give up' the car? How do you mean? Like hand it back and forget about the payments? Not going to happen, you have to have at least 50% of the payments cleared to avail of the HP 'half rule'.

Firstly, sell the MX-5 privately, you'll get more for it. The cheapest '08 MX-5 on Carzone is €18,000 and the cheapest C180 is about €17,000 (still too expensive imo). In other words, sell the MX yourself and either pay off some of the finance with it or buy the C180. Bad time of year to be selling an MX-5, but you'll sell it eventually. There's no way you'll get anything what you owe on the car though. And why would the garage buy the car off the finance company? They'd make a horrible loss.

Summary: Bend over and prepare for the screwing of a lifetime. Oh, and don't buy brand new or on finance next time.

jargarbo

thanks confab. I guess i have to deal with it. But as the crunch time goes on.... Cant do anything anymore but to return it back to them not sure what will happen. It's on hire purchase agreement btw. it's really getting difficult now a days so I have to let go of my beloved mx 5.

peasant

jargarbo wrote: »

it's really getting difficult now a days

Can't be that difficult if you're still contemplating spending 20 k on another car.

Kartale

jargarbo wrote: »

Hi everyone! I need advice as I need to down grade my car.

I have an 08 Mazda MX5 hard top. With all the cutbacks now I will be having difficulties with my finances. One solution that I was thinking is to give up this car as I'm paying quite a huge amount per month and change it to an 05 C180 costing €19,950. I still have €27,200 balance for my MX5 as it's under finance. When I asked the garage how am I going to settle this down grade he replied, I have to pay €3,000 in exchange of my car! I was shocked and cant understand why I have to pay more for an 05 C180 the fact that they're not going to buy my car from the finance company.

What other option can I do to facilitate this down grade as I really have to cut my expenses?

Not sure i understand you here.
You owe €27200 on your Mazda?
if so, you are over financed, the bank will auction your car & chase you for the remaining balance.
For the 2005 c180, are you going to borrow again? or have you the money?
as im sure borrowing again & paying off the remaining balance to the bank, will prob be close to your current monthly payments, not to mention your bad credit rating for doing this.
Easier to ring finance co. explain your situation & see if they can reduce payments for a period or stretch it out over a longer term

jargarbo

I know peasant... but at least my monthly payment wont be that high as what I'm paying now.

Kartale... It will be for finance as well. I'm sure now that if ever I borrow and pay off the remaining balance the amount I will be paying monthly is almost the same as I'm paying now and yes.... the bad credit rating as well. I'll wait and see what will happen after the december budget. When worse comes to worst I'll have to talk to the finance company and talk to them about this.

Thanks guys!