Is this possible (Finance Related)?

Oo_XR6T_oO · 11-02-2006, 05:53 PM

Hi,

Just wondering if this sort of thing is feasable or legal?

I currently have a vehicle worth around 30k(Trade In), with a finance amount owing of around 34k.

I am wanting to change my vehicle over to an XR6T, but as the finance amount owing is greater than the trade in value, would it be possible for a dealer to pay out the full finance figure, and add the extra 4k onto the purchase(finance) of the vehicle being bought to make up the difference?.

Hope that makes sense to yas...

Thanks

AXR-006 · 11-02-2006, 06:13 PM

Sure does make sense.I couldnt see a problem with that ive done it before.Just makes your new car that bit more pricey thats all....

Casper · 11-02-2006, 06:16 PM

Its legal so long as they (car yard) agree and the finance company gets its money.

Mark351 · 11-02-2006, 06:58 PM

I develop automotive financial systems, and they are geared to handle that exact scenario. In fact if you are getting finance for the new car from the same place you got your old car, they can pre-populate half of your application with the old data, inc your cars data as trade-in info.

qwigybo · 11-02-2006, 08:06 PM

i had a car yard offer to do that for me when i brought the XR. all just comes down to the yard as my mate was told to go jump when he offered the scenario when trading his car at another yard

MYVYSS · 11-02-2006, 08:09 PM

It is possible depending on how and who you are financing with, also if a novated lease I know that LeasePlan will not be interested in doing it. If its a personal finance and not a novated lease then I cannot see a problem.

Oo_XR6T_oO · 11-02-2006, 11:00 PM

Great,

Thanks all will look into in, talk to a couple dealers see what they say.

I will be looking at BA XR6T MKII Runout deals, Auto In either Silhouette, or Shockwave, any dealers out there with good deals going atm ?

Thanks

Ringo · 13-02-2006, 02:12 PM

The issue that you strike is that you want a finance company to give you a loan on a vehicle for $4000 dollars more than the vehicle is worth.

I know for an absolute 100% ridgy didge fact that LeasePlan won't do it but they are involved with novated leases and there are strict taxation laws regarding this type of leases because they are paid for from your salary pre-income tax.

All the information given is that the vehicle is under finance, not what type of finance. Novated Lease (Salary Sacrifice), Hire Purchase, Chattel Mortgage etc etc....sorry i'm putting you to sleep talking finance.

Car finance has become like house loans, all revolve around the same idea but have different features, different benifits and different rules.

Hindsight is always 20/20 but I'm interested in why the finance amount is different from the market value.

Are you wanting to payout the finance early?

Was the finance set up realisticly in the first place?

Setting up vehicle finance need be done realisticly and with a conservative outlook...that way the finance will always relfect the vehicle's value and you will have more options if something happens and you need to get out of it.

Wouldn't it be nice to be able to reverse those figures? Payout $30k but trade in value $34

Oo_XR6T_oO · 13-02-2006, 04:09 PM

Quote:

Originally Posted by Ringo

The issue that you strike is that you want a finance company to give you a loan on a vehicle for $4000 dollars more than the vehicle is worth.

I know for an absolute 100% ridgy didge fact that LeasePlan won't do it but they are involved with novated leases and there are strict taxation laws regarding this type of leases because they are paid for from your salary pre-income tax.

All the information given is that the vehicle is under finance, not what type of finance. Novated Lease (Salary Sacrifice), Hire Purchase, Chattel Mortgage etc etc....sorry i'm putting you to sleep talking finance.

Car finance has become like house loans, all revolve around the same idea but have different features, different benifits and different rules.

Hindsight is always 20/20 but I'm interested in why the finance amount is different from the market value.

Are you wanting to payout the finance early?

Was the finance set up realisticly in the first place?

Setting up vehicle finance need be done realisticly and with a conservative outlook...that way the finance will always relfect the vehicle's value and you will have more options if something happens and you need to get out of it.

Wouldn't it be nice to be able to reverse those figures? Payout $30k but trade in value $34

Yeah, mate I guess the depreciation on the car has gone down further than the finance amount.

Adding to that that it was going to be paid out early as well

I am surprised the current vehicle has depreciated so much, Jeep Cherokee LTD as it is only 18mths old and a 4WD, the fords have held value better.

Part of the reason I wanted to get rid of the Jeep is that the transmission died in it and had to be replaced under warranty, and only 20000kms left until warranty out so didnt want to be forking over cash to the fix it if it happened again.

Anyway, the wife has said to hold on to the jeep and in 12mths or so time we can look at getting New XR6 Turbo.

:

Cheers.

Mack 6 · 13-02-2006, 05:07 PM

I did it for a guy once when selling cars. Bought a VT on holden finance. Had 3 more years and 18000 balloon payment (car was 15odd at most back then). Got him into a new SV8 and covered the outstanding amount on old car.
We had good finance people, so yes, it still comes down to the finance mob