MK5 Golf GTI
General => Random Chat => Topic started by: Homer on April 15, 2012, 10:26:02 pm
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Hi folks, I was thinking of buying a different car, i.e. a newer GTI, the issue is that I still have finance on my car, so would I be able to transfer this finance to another car from say a VW dealer? My current finance was arranged through VW. Thanks for any advice
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In most circumstances yes :smiley: I've not heard of this not being possible in the past
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Let me answer this one....
Its all down to your settlement figure mate.
Lets say you owe £8000 n your offered £6000 in p/x. You basically have a negative equity where you owe more than yiur cars worth sooooo if you decide to buy another car the neq eq will have to be refinanced (technically finance companies dont finance neg eq but dealers have ways of hiding it) So if you bought a £10,000 car ud be financing payments on £12,000.
It will be a new agreement and not a transfer of finance.
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Let me answer this one....
Its all down to your settlement figure mate.
Lets say you owe £8000 n your offered £6000 in p/x. You basically have a negative equity where you owe more than yiur cars worth sooooo if you decide to buy another car the neq eq will have to be refinanced (technically finance companies dont finance neg eq but dealers have ways of hiding it) So if you bought a £10,000 car ud be financing payments on £12,000.
It will be a new agreement and not a transfer of finance.
and that is the correct answer, what i was thinking but couldnt have worded it as well as that
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Settlement figure has no bearing on it whether in a +ve or -ve equity situation :smiley:
It's a simple as it being new car, new agreement... VWFS will secure the loan against the vehicle...
If you are in a negative equity situation then the dealer will clear the outstanding agreement and in most cases add the shortfall to the new car agreement, if its a PCP you go for then this can really mess the figures up and depending on amount may mean you cant enter a PCP type agreement
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I was in this situation when I was looking for my Golf GTI, and no dealers were interested in transferring shortfall over and above the settlement figure...maybe because the existing finance wasn't on a VW? :grin:
In the end I simply stumped up the shortfall out of my own bank...ouch! Serves me right for having no patience, should have waited until the 'half term' point on my old car...
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Settlement figure has no bearing on it whether in a +ve or -ve equity situation :smiley:
It's a simple as it being new car, new agreement... VWFS will secure the loan against the vehicle...
If you are in a negative equity situation then the dealer will clear the outstanding agreement and in most cases add the shortfall to the new car agreement, if its a PCP you go for then this can really mess the figures up and depending on amount may mean you cant enter a PCP type agreement
How do you figure that? If the settlement is more than the cars value then there will be neq eq n one way or another the short fall will have to be tended to. Eitha by paying the outstanding balance or refinancing it. Dealers usually add the neg eq as a body kit or an accessory to hide it. Believe me... I kno :wink:
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Settlement figure has no bearing on it whether in a +ve or -ve equity situation :smiley:
It's a simple as it being new car, new agreement... VWFS will secure the loan against the vehicle...
If you are in a negative equity situation then the dealer will clear the outstanding agreement and in most cases add the shortfall to the new car agreement, if its a PCP you go for then this can really mess the figures up and depending on amount may mean you cant enter a PCP type agreement
How do you figure that? If the settlement is more than the cars value then there will be neq eq n one way or another the short fall will have to be tended to. Eitha by paying the outstanding balance or refinancing it. Dealers usually add the neg eq as a body kit or an accessory to hide it. Believe me... I kno :wink:
I figure that by the fact that the OP wishes to know whether he can transfer his outstanding finance agreement secured through VWFS against his current car to another car of his choosing..
The settlement figure of the current agreement is irrelevant in this fact as you can't 'transfer' a finance agreement from one vehicle to another, you can however settle one agreement and take out another on your next car as VWFS secure the loan against the vehicle...
Settlement figure equity whether +ve or -ve will obviously have to be attended to by either cash back or equity towards the next car if +ve or by adding to the new agreement if in an -ve equity situation, where this becomes complicated is if you plan to refinance using a PCP type loan as it can mess up the GFW of the vehicle and depending on the -ve equity outstanding may mean the finance house won't authorise the loan
I know too... :wink:
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You a Stealer BM Beddie? You'll be quoting ppi n supagard figures next! :P
Is that not what i said though? Only thing i didnt put was whether he was straight or in equity... My bad.
As for PCP GFVs bein to cock i hear you knocking :wink:
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N i now know that you know. N you know that i know n now everyone knows.... :laugh:
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Thanks for the input folks, my finance agreement is deposit then monthly installments for 5 years which pays off the car in full. I have 4 years left to pay.. The car is indeed in negative equity, I owe 14k and the car is worth prob 10k now. Not sure what to do really. Beddie- What do you mean by +VE and -VE , what does the VE stand for? Thanks
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Thanks for the input folks, my finance agreement is deposit then monthly installments for 5 years which pays off the car in full. I have 4 years left to pay.. The car is indeed in negative equity, I owe 14k and the car is worth prob 10k now. Not sure what to do really. Beddie- What do you mean by +VE and -VE , what does the VE stand for? Thanks
Thats a hefty chunk of neg eq my friend. You may struggle to get the advance. He means positive and negativer homer its jus quicker than writing it.
You think he should look at going down the personal loan route beddie? But obv as you 4k upside down your payments would prob be eye watering to be fair cos im presuming youll be looking at a newer/expensive car? Im presuming you didnt put a large deposit in when you bought your current?
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Hi, yeh I didnt put much deposit down, didnt trade in either, kept my old diesel thinking could use it for longer drives but my sister wrote her car off and has commandeered my old car. Will prob just keep a hold of the current GTI for a while longer I guess as your right payments would simply be too high. Cheers for the input folks
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I'm in the same negative equity boat as you! I have an 05 GTI which cost just over £10K in sept 2010 , values have bombed since then and its probably only worth £5-6K as a trade in and I've only paid 18 months worth of paymentson a 5 year agreement. I too would love a newer GTI , (probably and early Mk6 or a late Ed30) but transferring the Negative Equity would make it a poor financial choice.