Fabia Monte Carlo Finance malarky

[Kobayashi]

Skoda keep phoning the wife saying they have found a way of ending lease term early on the citigo to pave the way for her next car (Monte Carlo Fabia) without us having to clear the finance on the citigo??  She is in one of the those bloom payments at the end, in which you break even and buy (as I did on my VRS) or walk away (give the car back) but this officially ends Feb 2018 (another 11 payments to go)..

 

So last time we checked we owed £1400 sep 2016. This we were told we would have to pay the finance (to get out of) after sitting in skoda for 2 hours...

 

Now skoda are telling her they have found a way around it?

Has anyone heard of this??

 

I don't want to waste my time going into the branch again (as we did last time)

 

We are looking at a Fabia Monte Carlo (2016) Less than 8000 miles which used are around £11K?

 

thanks

 

Edited 20 March, 2017 by Kobayashi

[Crassus]

Towards the final 18 months of a PCP deal it's often possible to end the agreement and walk away or trade-in, especially if the car is worth more than the outstanding finance. If that's the case, then dealers are often very willing to take your car and lock you into a new agreement.

 

Before agreeing to any offer, ask around to find out how much your car is worth. Secondly, are they offering you a replacement at a good price? Don't forget that your agreement ends every soon so don't feel cornered into a bad deal. The closer you get to the end of the agreement, the more options you will have: New VW Polo, Fiesta & Ibiza, not to mention a Fabia from any dealer.

Edited 20 March, 2017 by Crassus

[TheFlash]

It could be due to deposit contributions from Skoda/ Dealers.

 

For example, if there is a deposit contribution of £1500 then this would allow them to clear the £1400 you owe to allow you to change the car.

[Kobayashi]

thanks guys ive told them we dont have a 'deposit' as such as we will be taking a loan over 5 years then keeping the car.

So they need to find me a Monte Carlo for £11K then knock off around £1K which would cover any remaining, Seems like the only way of doing it but dont think they would do this on a used car and maybe we would have to use there finance with higher APR instead of my local bank?

 

This might now explain why he has not got back to us for the last few days despite me pointing out 2 Monte's on autotrader at exactly 11K!

 

Were in no rush we would probably get an ever better deal closer to when the citigo one ends which was a 64 plate so that is still in warranty anyway  for the remainder of that agreement.

[RickW]

Sensible choice

[glosrich]

Sounds a bit dodgy to me, get a 2nd opinion before you sign anything.

 

Basically all finance deals have a clause in them called 'Voluntary Termination' or VT. Once you have paid half the finance balance, you can call the finance company and ask for VT and they will arrange to come and collect the car, and inspect it for damage.

 

Sounds like they mean you may have reached this point in your Citigo and can invoke VT. Obviously make sure its not worth more than the finance balance, as you're then giving your equity away!

 

 

 

 

 

 

[Rooted]

The UK Used Car Market is full of vehicles including Pre-Reg that Dealerships need selling.

Loads more Lease cars that will get handed back will be on the market this year and prices really will make it a buyers market soon enough.

 

Then Facelift or Re-fresh All New 3rd Generation 1.0TSI engine cars available soon.

Plenty cheap cars around for years to come, maybe even plenty of finance, but time will tell on that one, politics plays some part in that. ie Article 50 / Exchange Rates.

Edited 21 March, 2017 by Awayoffski

[Kobayashi]

Im going in Saturday as im over that way, but he kind of said that our 75BHP Citigo is 'in demand' over the 60BHP. I found that part a bit laughable, but he then proceeded to offer her a superb which is completely the opposite to what she wants. I sent him the links of what we wanted and no reply since. I was in negative equity all the way with my VRS as i considered swapping it for a CTHE at one point. i have never know anyone be in 'profit' or have equity in these sort of deals.

[Crassus]

3 hours ago, Kobayashi said:

 i have never know anyone be in 'profit' or have equity in these sort of deals.

 

You can be in 'profit' depending on the following three things:

 

1. Mileage

2. Outstanding finance(Payments + ballon payment)

3. Desirability of the car

 

Assume that after 3.5 years of ownership, the outstanding finance is £6,000 based on you doing 10,000 miles/year. However, you have only averaged 7,000 and WeBuyAnyCar.com says your car is worth £8,500. Thus, your car is worth more than the outstanding finance, leaving you in a stronger than forecasted position.

 

Therefore it's always a good idea to get a car valued by a a few dealers before giving it back or trading it in. 

 

[Rooted]

^^^ Valued at what by a dealer, as a car that would be a straight sale to them without it going in as a Trade In?

The Used Car market is going through the Floor because manufacturers flooded the market with Pre-Reg & Management Cars (new cars) and cheep finance.

ie Pyramid selling,

why would someone want a 3 year old out of Warranty when New is Cheap as Chips!

[fzrkev]

New road tax rates for one! Buy a new 1.0tsi fabia (new band e, 91-100 g/km co2) and pay £120 first year and £140 thereafter P/a. Or, buy a used 1.2tsi (old band b, 101-110 g/km co2) and pay £20 P/a. You'd also most likely get approved used warranty too. I think small used efficient cars will be in huge demand because of the new VED rates. 

[Rooted]

If the 1.0TSI actually use less fuel as the 'Cheating Low Co2 g/KM & VED small cars' were supposed to they might well be in demand.

More torque might mean they get where you want while using less fuel, time will tell.

 

By 2018 people wanting a car might care not a jot on the £140 VED compared to a upcoming MOT, brake Fluid change and Servicing costs compared 

to NIL Deposit and low monthlies. 

Even lower if they buy a New Diesel.....

[Crassus]

41 minutes ago, Awayoffski said:

why would someone want a 3 year old out of Warranty when New is Cheap as Chips!

 

Used cars from main dealers come with warranty and are usually in near brand new condition.

 

The reason why many buy new is because they can't afford the finance of a used car, if you can, it's one of the most cost effective way to buy cars.

 

In 2015 I bought a 2.5 year old BMW 320d with top specs that looked as good as new for £18,000 from a BMW dealer. Brand new it was £35,000. I put 12,000 miles on it in 12 months and traded it in for £15,000. It was financed using my own money and an interest free loan.

 

Had I bought it brand the loss from the depreciation would have been closer to £10,000. Unfortunately I cannot afford to buy cars like that but if I could again. It's a great way of enjoying cars with too specs for less.

 

Plenty of people buy used cars for this reason. It took the dealer less than a week to sell the 320d I traded in.

[Rooted]

Obviously, that is how the Motor Trade works.

Here we are talking smaller cheaper cars that Skoda / VW are selling at not that cheap prices and leasing and still Pre Reging and there is no shortage used low miles nearly new with a warranty.

 

Lease Returns at 2 years or 3 years are coming back into the trade now. 

Lots of getting to a Major Service or MOT.

 

As to BMW and Used cars, do you see how poor sellers used many of them are, you see the depreciation because you benefited from it.

Leased Cars with Manufacturers up front payment, specced up cars back into the BMW DEalerships and Cheap as Chips unless you pay the window sticker price.

 

Plenty people buy used, buy at auction and trade in cars, it not rocket science, 

just the bubble is bursting as BMW, Audi, VW, JLR have played the Cheap Finance and Leasing for so long.

The values were over valued if the customer for Used cars shops around.

 

PS

Lots of Mk3 Fabia that Motability Finance bought in 2015 will be getting returned next year and going to BCA and then be on the used car market, and currently ones being 'Taken back' as Disabled People were reassessed and not getting PIP so they lose there Leased from Motability cars.

800 or more every week are having cars 'removed from their keeping' and going to Auction, all types of cars.

'Good buys for someone' at BCA.

Edited 21 March, 2017 by Awayoffski

[Crassus]

49 minutes ago, Awayoffski said:

 

Lots of Mk3 Fabia that Motability Finance bought in 2015 will be getting returned next year and going to BCA and then be on the used car market, and currently ones being 'Taken back' as Disabled People were reassessed and not getting PIP so they lose there Leased from Motability cars.

800 or more every week are having cars 'removed from their keeping' and going to Auction, all types of cars.

'Good buys for someone' at BCA.

 

Good point! I didn't consider that. I only learned of Motability the past 3 months when I have been in the market for a hatchback as a 2nd car, which will be a Fabia I will collect in 2 days.

[Rooted]

Motability Finance the biggest Group Buyer of vehicles in the UK.

Cars purchased outright and then leased for 3 years and go straight to BCA for resale.

No Dealership buyback agreements anymore since the Billions that Motability had was handed to the 5 Big Banks after the Crash in 2008.

 

Now all change as the Government introduced PIP and retesting and many no longer getting the points to get the PIP and then use Motability

(a charity LOL at that...)

[Kobayashi]

I think our citigo in demand as no tax paid at all since new 2014, it does do 55mpg to 60mpg on 95 ron, 23,000 miles no tyre wear out. Each service avg £150. We would keep it but we need a 5 door car, will see what the remainder is against value of car. Apart from sticking brakes in a morning its a good car

[RickW]

Daft question (tell me if it is) .

 

Am I at liberty to sell the car to friend or family at the end of the PCP and then pay the finance off?

[Damo]

Technically until the last payment is made, it still belongs to the finance company, so you shouldn't really sell it until then.

 

However, on a previous car I had on PCP, the buyer paid the finance company online at my house on collection. 

 

If your agreed price is worth more than the settlement figure, then any extra can go to you in a separate payment.

 

 

[RickW]

Thanks again Damo.

[Kobayashi]

On 3/21/2017 at 13:14, glosrich said:

Sounds a bit dodgy to me, get a 2nd opinion before you sign anything.

 

Basically all finance deals have a clause in them called 'Voluntary Termination' or VT. Once you have paid half the finance balance, you can call the finance company and ask for VT and they will arrange to come and collect the car, and inspect it for damage.

 

Sounds like they mean you may have reached this point in your Citigo and can invoke VT. Obviously make sure its not worth more than the finance balance, as you're then giving your equity away!

 

 

 

 

 

 

 

We really need to start again on a new loan for a 5 door car, i am going to see if we can invoke the VT (Voluntary Termination) on the 3 door Citigo as we are 2/3 through the agreement but it has a 'bloom payment'

 

The citigo at 23K miles is worth £4.5K approx. the settle figure is over £6000. this would be to keep the citigo & settle agreement, but 3 door is no good for us now.

 

I think we need to invoke the VT, i know it is 'frowned upon' but we can get a car loan from local bank for 3.3% APR and start again with a 5 door monte Fabia that we want to keep.

 

It would only be £30 a month more than what we are paying now but we would be starting towards paying to keep a second car....

 

[glosrich]

I think you mean a 'Balloon' payment....lol

 

Have a read of the finance agreement, you should see a clause about VT, all finance agreements have them for many years now. If in doubt you can phone the finance company with your agreement number and they will check for you. As long as there isnt any major damage on the car, they will collect it free of charge. They allow for wear and tear, a few chips, light scratches etc, but any big dents, deep scratches or damage inside is chargeable. BVRLA fair wear and tear guidelines here: https://issuu.com/bfwsn67/docs/fwt_volkswagen_financial_services_2?e=2001091%2F12361092

 

You might find it cheaper to get a new one on Skoda 0% with a discount, the 90ps Monte Carlo starts around £13k

 

https://broadspeed.com/CarView/Skoda/Fabia/41654/TSI_1.2_90PS_Petrol_Monte_Carlo_Manual_5_doors

 

 

 

[Kobayashi]

6 minutes ago, glosrich said:

I think you mean a 'Balloon' payment....lol

 

Have a read of the finance agreement, you should see a clause about VT, all finance agreements have them for many years now. If in doubt you can phone the finance company with your agreement number and they will check for you. As long as there isnt any major damage on the car, they will collect it free of charge. They allow for wear and tear, a few chips, light scratches etc, but any big dents, deep scratches or damage inside is chargeable. BVRLA fair wear and tear guidelines here: https://issuu.com/bfwsn67/docs/fwt_volkswagen_financial_services_2?e=2001091%2F12361092

 

You might find it cheaper to get a new one on Skoda 0% with a discount, the 90ps Monte Carlo starts around £13k

 

https://broadspeed.com/CarView/Skoda/Fabia/41654/TSI_1.2_90PS_Petrol_Monte_Carlo_Manual_5_doors

 

 

 

 

ha ha yes bloom!, balloon!, perrys vauxhall were doing 'boomerang!' many years ago, no wonder i get them all mixed up. I know we owed £1400 in Oct 16. Add another 6 months of  £170 payments = £1020 so i know we are close. May be 2 or 3 payments off reaching 50% marker. Car just need cleaning inside & out & it would be 8.5 to 9/10 standard.

 

Will look at the options on sat, got meeting with dealer with the wife, need to keep it £10-11K all in (with gap insurance) due to other things going on cannot exceed £11K

 

thanks for the guides above

 

 

[Wet Kipper]

don't buy the gap insurance as part of the offer from the dealership. Plenty of other companies - including a couple of site sponsors - who will do you gap insurance much cheaper than the dealer will.

[Damo]

I agree with @Wet Kipper

 

Dont take out gap through the dealer.

They wanted me to pay £300, and I got the same cover through site sponsor gapinsurance.co.uk for £60! 

 

See here

 

Edited 23 March, 2017 by Damo