Car finance

[Tree13]

Correct. The car was effectively rented at a premium for the duration as the contract is anticipated to be voluntary terminated.

Everyone a winner if you consider a car in the same way as you would a rented house.

Which, of course, no-one in their right mind does.

All these new car finance deals are designed to do is make a brand new car SEEM more affordable when in fact the overall outlay is more expensive. In many instances the customer decides not to keep it after two/three years, or a set number of miles, and the REPEATS the same process with a newer new car. Bonkers. Utterly, utterly bonkers.

These schemes are just cleverly-marketed psychological ploys to make people commit to handing over money they don't have for a product they don't need. Given the depreciation a brand new car suffers the moment it is driven away for the first time, buying brand new simply makes zero sense for anyone.

Buy something six months old with a couple thousand miles on it for two thirds of the price, for goodness sake. That's the absolute most anyone will ever "need". Mrs Tree got a three year old vehicle, the exact make/model/colour/trim that she wanted, with less than 20k on the clock, for a little over half of the brand new list price - all the left over money has come in very handy.

 

[.....!]

Car financing. The next great financial recession tool.

 

[Armaghtoffee]

Which, of course, no-one in their right mind does.

All these new car finance deals are designed to do is make a brand new car SEEM more affordable when in fact the overall outlay is more expensive. In many instances the customer decides not to keep it after two/three years, or a set number of miles, and the REPEATS the same process with a newer new car. Bonkers. Utterly, utterly bonkers.

These schemes are just cleverly-marketed psychological ploys to make people commit to handing over money they don't have for a product they don't need. Given the depreciation a brand new car suffers the moment it is driven away for the first time, buying brand new simply makes zero sense for anyone.

Buy something six months old with a couple thousand miles on it for two thirds of the price, for goodness sake. That's the absolute most anyone will ever "need". Mrs Tree got a three year old vehicle, the exact make/model/colour/trim that she wanted, with less than 20k on the clock, for a little over half of the brand new list price - all the left over money has come in very handy.

I hear what you are saying but would suggest that most people see these deals as rental agreements rather than a purchase and therefore have no real expectation of ownership.

 

[evilwebby]

I hope it's an E-type.

 

[The Penalty Box Dancer]

I'm in the same situation and nearing the half way point. However, the finance is in my ex girlfriends name. We haven't been together for a while and she keeps threatening to come and take the car from me once half the term is up. I pay her the money every month straight into the bank but I get the impression she wants to ruin my life and take it from me. My current girlfriend doesn't know about this arrangement and I feel could open a massive can of worms. I have told her I'll keep the car for the full term but was suddenly thinking about this private sale option and giving her the money from it.

The v5 is in my name so can I sell it?

 

[Tree13]

I hear what you are saying but would suggest that most people see these deals as rental agreements rather than a purchase and therefore have no real expectation of ownership.

Fair point.

In that instance, I hope they are getting their money's worth by driving decent mileage every day...

 

[Tree13]

I'm in the same situation and nearing the half way point. However, the finance is in my ex girlfriends name. We haven't been together for a while and she keeps threatening to come and take the car from me once half the term is up. I pay her the money every month straight into the bank but I get the impression she wants to ruin my life and take it from me. My current girlfriend doesn't know about this arrangement and I feel could open a massive can of worms. I have told her I'll keep the car for the full term but was suddenly thinking about this private sale option and giving her the money from it.

The v5 is in my name so can I sell it?

You can't sell it until you own it. If you are paying the finance company every month then i would presume they own it - the V5 proves the person named on it is the registered keeper, but does not prove that the registered keeper is the legal owner. The contract between the finance company and the person who entered into the contract with the finance company will explain who currently owns the car.

If the finance agreement is between your ex and the finance company then you don't get a say regarding what happens when the half term is up - you are not a party to the contract between your ex and the finance company UNLESS your name is expressly referenced in the contract as being one of the contracting parties.

 

[The binman chronicles]

I hear what you are saying but would suggest that most people see these deals as rental agreements rather than a purchase and therefore have no real expectation of ownership.

I agree most do see it as a way of leasing but it can give some money back unlike leasing a vehicle. Most times when the PCP contract ends you will have a bit of equity or the dealership will stump up the cash for you to go onto another PCP. It gives you more options at the end of the day.

I have one these but i will be taking out a loan to cover what I owe, (now I have paid a good chunk off of it) keeping my payments to about the same as what I am paying at the moment. It makes it affordable instead of paying out £500+ for HP when you don't have a balloon payment.

 

[The binman chronicles]

I'm in the same situation and nearing the half way point. However, the finance is in my ex girlfriends name. We haven't been together for a while and she keeps threatening to come and take the car from me once half the term is up. I pay her the money every month straight into the bank but I get the impression she wants to ruin my life and take it from me. My current girlfriend doesn't know about this arrangement and I feel could open a massive can of worms. I have told her I'll keep the car for the full term but was suddenly thinking about this private sale option and giving her the money from it.

The v5 is in my name so can I sell it?

I would have given her the car back and stopped paying her! The finance is in her name so it's her responsibility, especially if she is threatening you over it.

If you explain that to her might she do something to transfer the finance over to your name so you can get her out of the loop, or do you think you haven't got a decent credit score etc. for that to happen?

 

[larbert toffee]

I'm in the same situation and nearing the half way point. However, the finance is in my ex girlfriends name. We haven't been together for a while and she keeps threatening to come and take the car from me once half the term is up. I pay her the money every month straight into the bank but I get the impression she wants to ruin my life and take it from me. My current girlfriend doesn't know about this arrangement and I feel could open a massive can of worms. I have told her I'll keep the car for the full term but was suddenly thinking about this private sale option and giving her the money from it.

The v5 is in my name so can I sell it?

Get one over on her take the hub caps off before you return it, that'll wipe the smile off her face.