Clearing finance on my vehicle?

Nastygal2511

Hi All,

I am currently mortgage approved with the term that I clear my car loan. I was robbed when buying my car and currently owe 8.5k on a 2012 Renault Megane Coupe. Anyway, I am happy with my car and I can afford my payments but the bank want the loan cleared. I can't afford to clear the car before we need our mortgage drawn down. My mother is happy to take over then car and pay the payments but BMW Finance won't allow this. Is there anyway around it?

Thanks,

beechwood55

What do you mean when you say that you were robbed when you bought your car?
Would your mother be able to give you the €8500 outright and then you pay her back once you draw down the mortgage?

quadrifoglio verde

How much finance is outstanding versus it's value? You could sell it back.
If the car is worth less than the finance outstanding, you could look into the half back rule

Then head over to bangernomics and find a cheap runaround. Once the mortgage is drawn down, go out car shopping.
The bank won't mind as you met their stipulation at time of mortgage drawdown and the dealership will be more than happy to sell you something on finance

Nastygal2511

quadrifoglio verde wrote: »

How much finance is outstanding versus it's value? You could sell it back.
If the car is worth less than the finance outstanding, you could look into the half back rule

Then head over to bangernomics and find a cheap runaround. Once the mortgage is drawn down, go out car shopping.
The bank won't mind as you met their stipulation at time of mortgage drawdown and the dealership will be more than happy to sell you something on finance

What's the half back rule? The car is worth about 9000

Nastygal2511

quadrifoglio verde wrote: »

How much finance is outstanding versus it's value? You could sell it back.
If the car is worth less than the finance outstanding, you could look into the half back rule

Then head over to bangernomics and find a cheap runaround. Once the mortgage is drawn down, go out car shopping.
The bank won't mind as you met their stipulation at time of mortgage drawdown and the dealership will be more than happy to sell you something on finance

What's the half back rule? The car is worth about 9000

MarkN

Under traditional HP, when you're more than halfway through the term of the loan, you can walk away from the vehicle (and get nothing) leaving the keys with an agreed garage via the finance company. Alphera finance who I'm guessing you're with (trading as BMW finance), will be familiar with it if you just phone and ask. You're not liable for anything and they can't go after you or have you blacklisted on the ICB. It should also be in the small print on the documents you signed when buying the car. But just to be clear, you are walking away with nothing to show for your last few years of repayments if you do this.

A more factual answer below;

http://www.consumerhelp.ie/car-finance-debt

The 'half rule'

The ‘half-rule’ is part of the Consumer Credit Act, 1995 and gives you the right to end a hire purchase agreement at any time. Your documentation (the agreement) from the finance company must show the figure for half the hire purchase price of the car. The ‘half-rule’ allows you to end the hire purchase agreement and limits your liability to half the hire purchase price of the car.

You do not have to pay half the hire purchase price to the finance company before you return the car using the half rule. A recent High Court decision clarified this. If you have not paid half the hire purchase price you can still return the car. However, you will still owe the difference between the payments you have made and half the hire purchase price .

The example below shows how the half rule works.

Joe picked a car that cost €13,300 from a car dealer. The dealer arranged a five-year hire purchase agreement for Joe, and asked for a deposit of €1,000. The total hire purchase price is €16,790.69. In month 37 of the agreement, Joe wants to end the agreement but he doesn’t want to pay the balance and keep the car.


Half the hire purchase price of €16,790.69

€8,395.35


Total amount Joe has paid to date:
(Broken down as follows)

€10,465.12






Deposit

€1000.00


36 Repayments of €260.92

€9,393.12


Documentation fee

€72.00




Joe will also be responsible for any repair costs that are necessary and must pay any arrears that are due.