Need some advice

[Steve5891]

Hi all!

My financial situation has changed and now after only 6 months of ownership I'm in a bit of a dilemma with my DS3. The car was on finance, which is now being absorbed into the mortgage on my house, leaving the baloon payment.

Do you guys think its worth trading in the car for something similar / cheaper, an older THP maybe, using the remaining value of my car as a deposit on a new finance plan. My way of thinking is that if I trade now I will get the maximum value for my 62 plate DStyle+

So I can either:
1) refinance the baloon payment
Or
2) trade the car in and use any remaining value as a deposit on another DS3


Thanks!

[Chris_Blue]

If you want something faster, then you only live once
Finance- hate it meself- just a necessary evil. Pay off asap me
Go for it

[Phil H]

I bet you'll lose a heap of money trading it in. I financed the balloon on interest free credit card and my Dstyle Plus is fast enough using V Power fuel.
If you do trade it in, would you mind letting me know what you were offered as mine is a 62 plate too.

[Jimbob]

Grit teeth
Pay debts
Avoid false economy
Try saving

JB

[gar074]

The car was on finance, which is now being absorbed into the mortgage on my house

No disrespect intended to you, Steve, but this is why the country's in such a financial mess. Lenders lending money via mortgages for the purchase of depreciating assets is madness, imho.

Trading in a nearly-new car will inevitably hit you hard in the pocket, as the depreciation curve is steepest at that point. But presumably, if you've bought yourself out of your original finance agreement, you're now liable to make the final balloon payment? Ouch. I hope the new arrangement doesn't end up costing you more than you'd have paid out under the original finance agreement...

[lfcrule1972]

It's frightening how much some lenders are happy to keep offering up.....

[Jimbob]

Take a £15000 car.
Add it all to a 25 year morgage at current interest rates.
How much have you paid for the car?
Answers please - there must be some mathematicians out there.

JB

[lfcrule1972]

Approx £25k JB not allowing for lender fees etc on set up as I assumed the mortgage already exists....

[Jimbob]

Is that all?
Thought it would be more than that and at least double?
Maybe I'll get a morgage for a Bentley

JB

[lfcrule1972]

Well I used an online Mortgage calculator JB, the rates could be higher though if there wasn't enough equity in the property etc

[Jimbob]

How much is a 25 year old DS3 worth?

JB

[lfcrule1972]

It would never last that long....

[Chris_Blue]

Mortgage loans can be got for as little as 2.99% and you may even get less
If you only have a mortgage left, of say, 5 years, then the loan you take cant extend pass that

In effect it makes it a very cheap loan

Then you could consider 0% credit cards for as long as 18months which is extremely cheap- but repayments higher cos less payback time- but Youre actually borrowing money for nothing

If youre gonna borrow money, nows the time to do it

[lfcrule1972]

Chris_Bleu IFA

[gar074]

Chris_Bleu IFA

lol

Spend, spend, spend - you know it makes sense.