Trading in for a 4WD.

[buddy92]

HI all, after some help/advice here.

I called up Capital Finance, but they didn't seem like they wanted to answer any questions I had.

I owe $19,460.60 on my car loan, I called them up and asked them what I could do, basically they said I had to pay out in full, and do it all again, Which I don't think I could since I have a mark on my credit history because of Optus ( Which was purposely done, yes I know it was dumb, long story )

Am I not in the position to just straight swap my FG with someone who has a 4WD or what?

Everytime I ask, I get the pay out in full then go from there stuff, not very helpful.

[AU1XLS]

If that is what they want to release their hold then really what other advice can we offer except to say you have to do what they want

Cheers

[PG2]

Buddy

Some finance companies/banks etc will look at just swapping over the loan to another vehicle as long as the other vehicle fits within their lending criteria - age, value etc...

However, some finance companies will make you re-apply for another loan. Yes, they will look at your current financial status and that will include your rogue Optus account. Sometimes if you have suitable reasons/circumstances surrounding the phone account they take this into consideration.

Another thing to keep in mind. You currently have a 2010 Ford Falcon XR6? No finance company will look at releasing the interest they have on this to swap over to a 10 year old 4x4 (just an example) or something of lesser value.

[blackf6]

You can try and get a personal loan to pay out the vehicles finance. Or refinance on another vehicle. Bit of a crap shute though. Maybe just wait until you pay out the loan and then get a 4X4.

[ryeman]

From the finance companies point of view, it's their vehicle until you clear the loan and that's it realy.

[chookaradley]

It's really that simple. The car is secured against the loan. You want another car? Payout the loan and you can do whatever you want. Always frustrating when you borrow money for a car, want a different car after 2 or 3 years, and then realise the payout is more than the car is actually worth. Kinda limits your options.

[ryeman]

In fact it suits the finance industry AND the dealerships to have you THINK its your car.....well it will be one day if all goes well, that's the hard truth.

[kempy311]

Why not sell the car first then sort out buying a 4wd.

[xisled]

I am not sure what you want them to say. It sounds like you have been told over and over what you need to do, yet you keep asking the same question and get upset when they give you the same answer.

Only option I can see is find the cash to pay the loan out and get the cash to buy another car.

[Danford2]

Go to a dealership and find the 4WD you want, trade in the Ford and roll over any loss into the new loan for the new 4WD. The finance guys at the dealership are sales people and will find a way to get you approved, as otherwise they dont get paid.

[mechanic]

On a different tangent, do you want a 4WD or you need a 4WD?
If you need a 4wd for holidays etc, just hire one it's cheaper.
The worst feature of 4wd's is they're rubbish to drive around town and having an FG you'll really miss it.
Just my 2 cents worth after having 5 4wd's.

[nstg8a]

Originally Posted by Danford2

Go to a dealership and find the 4WD you want, trade in the Ford and roll over any loss into the new loan for the new 4WD. The finance guys at the dealership are sales people and will find a way to get you approved, as otherwise they dont get paid.

Really really bad advice. But other than doing what your finance company has already told you its either

1- pay off the car then swap/trade whatever it
2- sell the car and pay it off, you will need the finance companies permission here...
3- trade it on another vehicle and roll over the finance.
Trouble with this is you end up basically paying off two vehicles at once, and you will get nowhere.

1 or 2 are your only real options. 3 is only really an option when your down to paying off your last few grand on your loan, not when it's still 20k.


Trust me, I've been there and made all the dumb financial decisions before.

[Mr_Meaner]

You currently owe more on your car that it is worth. Taking into account depreciation and interest, that isn't going to change anytime soon.

Stop wasting your money on unnecessary mods for your car, and start paying more on your loan.

[Danford2]

Originally Posted by nstg8a

Really really bad advice. But other than doing what your finance company has already told you its either

1- pay off the car then swap/trade whatever it
2- sell the car and pay it off, you will need the finance companies permission here...
3- trade it on another vehicle and roll over the finance.
Trouble with this is you end up basically paying off two vehicles at once, and you will get nowhere.

1 or 2 are your only real options. 3 is only really an option when your down to paying off your last few grand on your loan, not when it's still 20k.


Trust me, I've been there and made all the dumb financial decisions before.

Didn't say it is a good option, but it answers his question and gets him the 4WD

[Smoke Pursuit]

Originally Posted by Mr_Meaner

You currently owe more on your car that it is worth. Taking into account depreciation and interest, that isn't going to change anytime soon.

Stop wasting your money on unnecessary mods for your car, and start paying more on your loan.

Best advice given.

Pay it down to where you can get out of it. Going by what I know about your car its worth about 14 - 15 kay. That puts you in the red for 6 kay.

[buddy92]

Damn, thanks for the advice guys.

Sucks kind of, a bloke was willing to swap a 09 Territory with 80,000kms on it, would of been perfect

[buddy92]

I was offered, the territory, and 6k cash for my Falcon, wtf?

[MercurySilver]

and you want a 4wd because??

just dont spend any more money on the car and hammer the loan
you're in the red and if you dont start paying extra off it soon the gap between the loan and the cars value will increase

[buddy92]

Originally Posted by MercurySilver

and you want a 4wd because??

just dont spend any more money on the car and hammer the loan
you're in the red and if you dont start paying extra off it soon the gap between the loan and the cars value will increase

Because the country and farms absolute rape my falcon.

I have been paying extra, normal payment is $102 a week, I'm paying $250 for the last 3 months or so.

[Franco Cozzo]

Save up $5000 in cash and get something like a 60 series land cruiser or GQ Patrol, keep the Falcon too, not worth having loans for cars.

[duaned]

Originally Posted by Mr_Meaner

You currently owe more on your car that it is worth. Taking into account depreciation and interest, that isn't going to change anytime soon.

Stop wasting your money on unnecessary mods for your car, and start paying more on your loan.

This took the words right out of my mouth!

[mechanic]

Originally Posted by Big Damo

Save up $5000 in cash and get something like a 60 series land cruiser or GQ Patrol, keep the Falcon too, not worth having loans for cars.

I'll agree with that 100%, or hire one if you don't want to have one parked in the garage.
There's truckloads of cheap 4wds out there and a good 60 series or GQ will do anything the later models will do.
Mechanic friend of mine got himself a low mileage 60 with PTO winch and all for $10,000.

[Franco Cozzo]

All my mates have 4x4s, one has a 1980s troop carrier with 600,000km on the clock which is his daily, and is used for off roading, another has a GQ patrol with 300,000km on it, and the odometer stopped so its probably got lots more.

Plus if you break it theres no real emotional attachment and everything is usually mechanical on those old 4x4s, no electronics to go wrong when you're stuck with water coming up to the doors.

[Vesper Martini]

Originally Posted by buddy92

Damn, thanks for the advice guys.

Sucks kind of, a bloke was willing to swap a 09 Territory with 80,000kms on it, would of been perfect

When you said 4WD, Territory wasnt what I was thinking...
perhaps put some higher profile tyres on your car to make it handle the country roads better, because it sounds like you will have to stick with it for a few more years unfortunately.

[calais]

Every day for the last five years, I have had people in my workplace asking me about how they can afford that shiny new beast.

My honest answer, is that they cant. I know how much they get paid, and with their junior years (<25) they will always be better off just buying a cheaper car which they can afford outright without damaging their ability to service a worthwhile finance option on an appreciating asset rather than get financially raped for 7 years on a depreciating one like a flash vehicle.

I have had three repossessions occur since 2008 to people I have worked with, all since 2008, and to be honest.... the people concerned never understood how they couldn't just cut their losses and call off the debt sharks. The loan payout figures were all stratospheric compared to the value of the secured vehicle. It left each of them with nothing but a bad debt, no car, no asset and a busted credit rating for the next seven years of their lives. Not to mention the work related administrative sanctions relating to the uncontrolled debt.......

There is a sensible way to acquire and maintain luxuries such as vehicles, work hard and reap the benefits of a higher disposable income later in life. Not in your formative years which are best spent maintaining perhaps a more 'frugal' approach to such luxuries?