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[05omegav6]

Can a car in negative equity be used as a deposit for a lease or PCP?

Without going into detail, I didn't part ex my last car, as it was felt that it should readily have achieved the outstanding finance if sold privately.

This has turned out not to be the case. Current car is also in negative equity, although by alot less. The second car is covered by my budget, the first is not, which is also creating issues.

The ONLY reason for asking the question is to try and get some sound advice for dealing with the cars, as the whole point of trading the car down and becoming employed was to reduce my costs and to improve my financial situation for obtaining a mortgage. The former having clearly not worked, and the second looking increasingly unlikely.

My options seem to be as follows:

1.Return the first car and suffer the financial consequences.
2.Sell the first car and try to raise the difference between the achieved value and the settlement figure.
3.Part exchange the first car, (or both cars for a lease car), say a £1-200 (plus the negative equity) per month deal on a wwd shitbox.

The biggest issue with option 1, is that the agreement has a settlement figure of about £16,800 and a remaining balance of about £20,400, the difference being returned interest. I understand that when the car is auctioned, it may not achieve the required amount, thereby making it impossible to calculate my liability accurately, but the finance company refuse to tell me which figure they would deduct the sale price from Assuming it achieved £13,500, would I owe £3,300 or £6,900?

The second option doesn't seem to be working either, as the car has been for sale since mid January...

[chrisgixer]

Nothing is shifting currently. Housing market, (and presumably knock on effect with cars), is apparently waiting for the election result, before anyone decides on spending.

I don't know why, but there seems to be some credence to the theory. So, sit tight.



....what are similar Mercs sales like?

[D]

Have you tried https://www.wewantanycar.com/

Some of the wbac alternatives are quite reasonable.

[Field Marshal Dr. Opti]

Personally I would avoid options one and three.

Option two, although better, is still far from ideal.

Between a rock and a hard place comes to mind, Al.

[Taxi_Driver]

If your having trouble shifting them, without losing money on them, I would rent them out assuming there still both plated as taxi's or just replate them.

Assuming you can get the same rates as Swindon (if not higher) that's £150 per week per car, which will cover all costs of insurance/maintenance/tax etc

Ok its a bit of hassle, collecting rent etc but imo it makes sense what to do with them 

[05omegav6]

Have you tried https://www.wewantanycar.com/

Some of the wbac alternatives are quite reasonable.

Depends on your definition of reasonable 
But thanks for the thought

[05omegav6]

If your having trouble shifting them, without losing money on them, I would rent them out assuming there still both plated as taxi's or just replate them.

Assuming you can get the same rates as Swindon (if not higher) that's £150 per week per car, which will cover all costs of insurance/maintenance/tax etc

Ok its a bit of hassle, collecting rent etc but imo it makes sense what to do with them 

I wouldn't trust a single one of them to pay/not smoke it it/look after it etc, so would have to be a direct sale. It would cost nearly £600 just to replate the Merc... Insignia is still plated, and was planning on shifting it at the end of the summer... currently my only MoTd transport

[The Sheriff]

Can a car in negative equity be used as a deposit for a lease or PCP?

Without going into detail, I didn't part ex my last car, as it was felt that it should readily have achieved the outstanding finance if sold privately.

This has turned out not to be the case. Current car is also in negative equity, although by alot less. The second car is covered by my budget, the first is not, which is also creating issues.

The ONLY reason for asking the question is to try and get some sound advice for dealing with the cars, as the whole point of trading the car down and becoming employed was to reduce my costs and to improve my financial situation for obtaining a mortgage. The former having clearly not worked, and the second looking increasingly unlikely.

My options seem to be as follows:

1.Return the first car and suffer the financial consequences.
2.Sell the first car and try to raise the difference between the achieved value and the settlement figure.
3.Part exchange the first car, (or both cars for a lease car), say a £1-200 (plus the negative equity) per month deal on a wwd shitbox.

The biggest issue with option 1, is that the agreement has a settlement figure of about £16,800 and a remaining balance of about £20,400, the difference being returned interest. I understand that when the car is auctioned, it may not achieve the required amount, thereby making it impossible to calculate my liability accurately, but the finance company refuse to tell me which figure they would deduct the sale price from Assuming it achieved £13,500, would I owe £3,300 or £6,900?

The second option doesn't seem to be working either, as the car has been for sale since mid January...

As far as I can see, the minute you return the car, the interest should stop accruing, so the figure would be £16,800. But, of course, they would probably value the car at less than that. Can you not get enough money together to pay them the difference between their valuation and the settlement figure minus returned interest?
How long was the original credit agreement and how far are you into it?

[05omegav6]

Five years and nine months respectively 

[The Sheriff]

Five years and nine months respectively 

Right. That's not long 

[05omegav6]

Nothing is shifting currently. Housing market, (and presumably knock on effect with cars), is apparently waiting for the election result, before anyone decides on spending.

I don't know why, but there seems to be some credence to the theory. So, sit tight.



....what are similar Mercs sales like?

Looking at Autotrader, anything from £13,500+

[The Sheriff]

It looks to me that, instead of all the convolution, you need to beg, borrow or steal about three grand to get rid of the merc once and for all.
REMEMBER...you will not be considered for a mortgage with anything other than a perfect credit record, don't break that up cause it's a bugger to put right.

[chrisgixer]

Nothing is shifting currently. Housing market, (and presumably knock on effect with cars), is apparently waiting for the election result, before anyone decides on spending.

I don't know why, but there seems to be some credence to the theory. So, sit tight.



....what are similar Mercs sales like?

Looking at Autotrader, anything from £13,500+

As pm. Long term...Sell the car ASAP, put the balance on 0% credit card and pay off the minimum payment until you get settled.

Short term, get 0% credit card and make sure the payments are met.

[Taxi_Driver]

If your having trouble shifting them, without losing money on them, I would rent them out assuming there still both plated as taxi's or just replate them.

Assuming you can get the same rates as Swindon (if not higher) that's £150 per week per car, which will cover all costs of insurance/maintenance/tax etc

Ok its a bit of hassle, collecting rent etc but imo it makes sense what to do with them 

I wouldn't trust a single one of them to pay/not smoke it it/look after it etc, so would have to be a direct sale. It would cost nearly £600 just to replate the Merc... Insignia is still plated, and was planning on shifting it at the end of the summer... currently my only MoTd transport

Blimey  that much, im pretty certain its about £160 for a first plate on a taxi in Swindon.

You haven't any non smoking mates then, that rent their cabs?? That's how I rented mine out....undercut what they are paying by £10-£20 a week usually persuades to swap cars 

I only had one bad payer....and he was easily persuaded to pay the rent when it came down to maintenance.....ie you want new tyres, cause there illegal.....pay the rent you owe and then i'll put new tyres on 

[05omegav6]

£325 for plate, £150 for a canbus interface, £100 ish for a meter, £60 meter fitting/calibration, £47 for mechanical inspection, £65-90 roof sign, £10 for plate holder, £20 for a fire extinguisher and first aid kit. £600 was a bit light

[Taxi_Driver]

£325 for plate, £150 for a canbus interface, £100 ish for a meter, £60 meter fitting/calibration, £47 for mechanical inspection, £65-90 roof sign, £10 for plate holder, £20 for a fire extinguisher and first aid kit. £600 was a bit light

Ahh....I see, you moved the bits and pieces between cars £325 for a plate is shocking 

But I can save you £30....ask/demand a plating kit from council....mine doesn't supply them voluntarily but will produce a kit foc if you ask and suspect yours will too  fire extinguisher and first aid kit.....borrow from Insignia for inspection.....when are you ever going to need a fire extinguisher and for first aid kit....unless you have first aid training you carnt use it....so just to be on the safe side on the unlikely chance a passenger cuts themselves on the plastic/seatbelt....keep a couple of plasters in the car   

[05omegav6]

£325 for plate, £150 for a canbus interface, £100 ish for a meter, £60 meter fitting/calibration, £47 for mechanical inspection, £65-90 roof sign, £10 for plate holder, £20 for a fire extinguisher and first aid kit. £600 was a bit light

Ahh....I see, you moved the bits and pieces between cars £325 for a plate is shocking 

But I can save you £30....ask/demand a plating kit from council....mine doesn't supply them voluntarily but will produce a kit foc if you ask and suspect yours will too  fire extinguisher and first aid kit.....borrow from Insignia for inspection.....when are you ever going to need a fire extinguisher and for first aid kit....unless you have first aid training you carnt use it....so just to be on the safe side on the unlikely chance a passenger cuts themselves on the plastic/seatbelt....keep a couple of plasters in the car   

Our Licensing organ grinder makes a note of serial numbers etc... he wised up to that ruse about six years ago

[The Sheriff]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

[Taxi_Driver]

£325 for plate, £150 for a canbus interface, £100 ish for a meter, £60 meter fitting/calibration, £47 for mechanical inspection, £65-90 roof sign, £10 for plate holder, £20 for a fire extinguisher and first aid kit. £600 was a bit light

Ahh....I see, you moved the bits and pieces between cars £325 for a plate is shocking 

But I can save you £30....ask/demand a plating kit from council....mine doesn't supply them voluntarily but will produce a kit foc if you ask and suspect yours will too  fire extinguisher and first aid kit.....borrow from Insignia for inspection.....when are you ever going to need a fire extinguisher and for first aid kit....unless you have first aid training you carnt use it....so just to be on the safe side on the unlikely chance a passenger cuts themselves on the plastic/seatbelt....keep a couple of plasters in the car   

Our Licensing organ grinder makes a note of serial numbers etc... he wised up to that ruse about six years ago

Shhhh then ... don't go telling my council  And they haven't even noticed the extinguisher that I keep shoving in the boot.....is out of date as well 

[Field Marshal Dr. Opti]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

Neither would I.

[Taxi_Driver]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

I did....on a c220 estate I owned.....I bought the 2.2 omega and rented the c220 out to a great payer.....every week on the dot he gave me, back then, £140 a week.....even when it was off the road for 2 months due to an accident....not his fault....so he went into a courtesy 'taxi' car....I was getting rent for a car not doing any miles and not paying for the courtesy car 

[Taxi_Driver]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

Neither would I.

Its been devalued anyway.....it'll be on the V5 its been used a taxi   

[chrisgixer]

I like the sound of that. Lease out the lease car to pay the lease. If I understand correctly?

Is one driver more likely to pops up the interior any more than another? Well possibly not, but who cares. Priority 1. Get the damn bills payed.

[chrisgixer]

Think of it as, my cars interior v my mortgageabilty. No contest!

[Taxi_Driver]

Think of it as, my cars interior v my mortgageabilty. No contest!

I would...I'd have those cars earning....tho its a bit of a hassle tbh.....but its Al's decision 

[Field Marshal Dr. Opti]

Think of it as, my cars interior v my mortgageabilty. No contest!

I assumed Al already had a mortgage.

[Taxi_Driver]

Think of it as, my cars interior v my mortgageabilty. No contest!

I assumed Al already had a mortgage.

Im only guessing here....but I think Al lives with his Mum.....as every post ive seen when he's been praised for work done on other peeps omegas....his mum gets a mention for great bacon sarnies....

[The Sheriff]

Think of it as, my cars interior v my mortgageabilty. No contest!

I assumed Al already had a mortgage.

Im only guessing here....but I think Al lives with his Mum.....as every post ive seen when he's been praised for work done on other peeps omegas....his mum gets a mention for great bacon sarnies....

You're a nosy bastard, Dave.

[Taxi_Driver]

Think of it as, my cars interior v my mortgageabilty. No contest!

I assumed Al already had a mortgage.

Im only guessing here....but I think Al lives with his Mum.....as every post ive seen when he's been praised for work done on other peeps omegas....his mum gets a mention for great bacon sarnies....

You're a nosy bastard, Dave.

No....just observant ....I don't care who Al lives with....hows that's nosy 

I may be totally wrong and he just does repairs on his mums drive....

But not nosey 

[chrisgixer]

....sorry, I meant credit rating.

[The Sheriff]

Think of it as, my cars interior v my mortgageabilty. No contest!

I assumed Al already had a mortgage.

Im only guessing here....but I think Al lives with his Mum.....as every post ive seen when he's been praised for work done on other peeps omegas....his mum gets a mention for great bacon sarnies....

You're a nosy bastard, Dave.

No....just observant ....I don't care who Al lives with....hows that's nosy 

I may be totally wrong and he just does repairs on his mums drive....

But not nosey 

Touchy.....    

[05omegav6]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

Neither would I.

Its been devalued anyway.....it'll be on the V5 its been used a taxi   

Not so. Two private owners from new

There are a couple of possibilities for renting them out, but in a world of Skoda shitboxes a Merc is a bit rich for most people

Will see what tomorrow brings...

I happen to rent a room above my Mums drive, hence the supply of bacon sarnies

[The Sheriff]

Would you really hand over the keys of your merc to someone else, to put thousands of miles on it and devalue it even further and expect them to look after it as you would?
I wouldn't.

Neither would I.

Its been devalued anyway.....it'll be on the V5 its been used a taxi   

Not so. Two private owners from new

There are a couple of possibilities for renting them out, but in a world of Skoda shitboxes a Merc is a bit rich for most people

Will see what tomorrow brings...

I happen to rent a room above my Mums drive, hence the supply of bacon sarnies

Well, you may end up destitute but at least you won't be homeless. Bet that's cheered you up.

[05omegav6]

Lots

 

[D]

Have you tried https://www.wewantanycar.com/

Some of the wbac alternatives are quite reasonable.

Depends on your definition of reasonable 
But thanks for the thought

I cannot remember the spec or how old your car is but the car in the link will get you £15,600 on the website I suggested. Is yours older or higher mileage etc?

[05omegav6]

Mine is 6 months older, twice the mileage, but much better specced

£12,100 was their best offer

[D]

Hmmm, at that sort of mileage the price that these companies will pay will dip dramatically. So will the scope of the privately buying crowd.

So if you sold the Insignia, are you saying that the Merc would be too expensive to run as your only private car? Because it would make sense to get rid of the car with lesser neg equity and wait for the Merc's negative equity to lessen. That is presuming you run it as your car, and not a taxi and put even more miles on it. If that makes sense?

[05omegav6]

It would be a struggle, and would be dependent on getting shot of the Insignia. If manageable, it would only be until it reached the 31st month, then it could be thrown back... that also applies to the Insignia.

[chrisgixer]

Looking at it the other way, what sort of income could two cars give you?

[05omegav6]

£400 a week would keep both cars on the road, insured, plated, Motd, taxed, shod and serviced... that's before profit...

As taxis, purely from a Rank basis, both cars carry the same income potential as it's pure chance... Rented out to a driver with an established business, the Mercedes should command a premium

[Sir Tigger KC]

£400 a week would keep both cars on the road, insured, plated, Motd, taxed, shod and serviced... that's before profit...

As taxis, purely from a Rank basis, both cars carry the same income potential as it's pure chance... Rented out to a driver with an established business, the Mercedes should command a premium

Rent it out then and look at it purely as a cash cow.     Spend the bare minimum on maintenance etc, keep paying the finance and put a bit aside to tart it up when you are ready to sell it.