Hi all, I did post this on the Money/Loans area but I think it may need to be removed as its had 100+ views but no replies indicating it might be a more motoring suited thread.
First time poster here at the moment but long time surfer on MS website.
In a little dilema at the moment. I'm 23, fulltime job and I bought a car in June 07 for around £27000 (25000 on finance with blackhorse).
The main reason I got this is I knew the dealership very well and we had a good understanding and the sale went ahead. The dealership is now closing and I wanted to get rid of the car and buy another. In the past, I just give the car back, they price it so that I can settle the finance and I re-finance a new car. However as they're closing, they've said they will >not< take any car in anymore despite my "loyalty"
Ok, so I went to Audi (the current one is a Volvo) but it was a dealership inthe same "group" as the Volvo dealership. They rang another volvo dealership in the group fora price on mine. They quoted £17500. Naturally I was quite shocked to learn the car has depreciated by £10,000! I did not buy the car new, it was as new and while mileage is a little high (21500 for a 1yr old car) the spec is high too
The finance settlement is £21500 so we're talking abot a £4000 to pay it off.
So getting to the point... I dont want this car any longer as I'm clocking up more and more miles and letting the value down even more day by day. If I was to get a loan out for £4000 for 4 years for instance (i'll pay it back much sooner but for now, monthly payments are around £90 according to Moneysupermarket on a "Fair" credit rating),
AND I settle the finance deal today,
AND re-finance with Audi on a new car
Would this mess up my credit-scoring to the point of being declined?
My Credit Experian report and score is on Fair...mainly because of a late payment with my last volvo where they told me to cancel my DD as they had sent the settlement cheque to Blackhorse - they were a day late and so BH tried to take payment.
Moneysupermarket has also said "FAIR" based on no outstanding loans, one finance agreement (my current car), no overdrafts (unless you cound graduate interest free OD) and no creditcards
So the main reason for this thread is to get a general idea on what you all think and whether it woul be a good idea to get a persoal loan, pay it off, and start again with a new car. The new car in general is going to save me money in a few ways too...1. Much higher MPG (37 now> 42 future), 2. Insurance is lower, 3. Tax is lower as emissions is lower
Appreciate all the help on this
Thanks,
AJ