advice on car please

[facingittogether]

hi everyone

we have been in a iva since april!

now my question - we have a peugeout 206cc car (51 plate) with a 2 litre engine that has approx £1400 hp outstanding - which we were allowed to keep and are paying the hp on it! now with fuel prices and car tax going up i was wondering if we would be allowed to part exchange it for a smaller more economical vehicle and the finance swopped onto the new car - our finance is with santander. we have seen a citroen c2 1100 engine (55 plate) which is £4000 and the garage said they wouold give us £3500 for ours in part exchange, my sister kindly said she would let us have the £500 difference! we just thought that the running costs with the price of fuel would be so much cheaper, the car tax will by next year £150 per year cheaper and it is the citroen is a much lower ins group so the insurance would be cheaper too! do you think this is would be viable or not?

thanks

barb x

[luluj]

If i were you I would speak with your IP - you will need their permission to do so first. They may advise that your sister take out the finance in her name - you may find it difficult to get a new HP ageement whilst in an IVA.

[facingittogether]

hi lulu

thanks for your reply!

i was hoping that we could stay with santander paying exactly the same monthly installment to them but the finance just be swopped over to the new car - not sure if that can be done or not!

i will do like you say make enquiries on monday!

thanks again

barb x

[Viki.W]

Hey Barb, I'm sure Kazzy has just done exactly what you want to. I may be wrong, it might be different. Hang in there and hopefully Kazzy or Melanie will help. Hope you're ok.[:)] X

[facingittogether]

thanks vicki - i am fine - hope you are ok!

i will wait to see if melanie or one of the other experts are around later to give advice!

another reason why i was thinking this may be a sensible idea is not just because the obvious running costs eg fuel, tax and insurance it would obviously be a cheaper car to get repaired if anything went wrong with it. just trying to economise wherever possible! no harm in asking if it cant be done then at least i tried!

barb x

[Viki.W]

Sounds sensible to me Barb. Hope you get it sorted. X

[facingittogether]

thanks hun!

barb x

[luluj]

Is it definately HP on the car or a loan ? Normally HP is for a specific car and when that car is sold that is it - might be wrong and I hope I am as your idea is a sensible one and one that I think alot will be looking to do - interested to see the answer from the experts

[facingittogether]

HI

I THINK IT IS FINANCE! I DID BRIEFLY SPEAK TO SANTANDER THIS MORNIG AND THE BLOKE I SPOK TO SAID HE THOUGHT IT MAY BE POSSIBLE TO SWOP FINANCE FROM ONE CAR TO ANOTHER BUT HE WAS NOT ENTIRELY ASURE AND I WOULD NEED TO RING BACK ON MONDAY!

ITS JUST AN IDEA I AM TOYING WITH BUT OBVIUOSLY WILL NEED ADVICE AND PERMISSION FROM MY IP ANYWAY!

THINK YOU RIGHT WITH RISING COSTS ALOT OF PEOPLE WILL BE WANTING SMALLER MORE ECONOMICAL VEHICLES!

WILL POST WHEN I KNOW IF IT IS POSSIBLE OR NOT!

THANKS FOR YOUR REPLIES

LOVE BARB X

[facingittogether]

BRINGING IT BACK TO THE TOP!

[Soulgrowth]

Hi Barb ... hope you are ok.

This sounds a sensible solution if it were possible to swap the HP over ... let us know how you get on.

Good luck

Debbie

[Kazzy E]

Hey darlin' how're you doing. I can tell you exactly what we did, Hubby had an HP finance agreement with Mazda Finance which was on their PCP scheme (balloon payment or hand keys back at the end of Yr 3). Because we were unsure whether we would get the finance next year we spoke to our IP and she kindly allowed us to part-ex a year early on the same type of scheme. We have been over to Mazda today, and Hubby has had to fill in a new credit agreement, but with the part-ex, our payments have gone down by £10 per month. We have also gone for a smaller engine, 1.6 instead of 2ltr so as you say, the insurance group and RFL will be a lot cheaper (4 insurance groups down!!!). Our new car has been ordered today, which we are really pleased about. As Melanie has said, it ensures stability over the next three years for our IVA and she was fine about approving it for us, so I hope your IP will be too. It is certainly worth an ask, as I was sure that it wouldn't be allowed, so I was pleasantly surprised. I really hope you get it sorted hun, let us know how you get on. Take Care Kazzy x

[Soulgrowth]

That's great news Kazzy [:)]

Just goes to show that there's always a solution.

Debbie

[facingittogether]

THANKS HUN!

MELANIE IS OUR IP TOO!

HAS YOUR HUSBAND GOT TO GO THROUGH A NEW CREDIT CHECK THOUGH COS I AM SURE WE WOULD NOT GET APPROVED BECAUSE OF OUR CREDIT RATING! I THINK THE MAXIMUM WE WILL OWE IS £1400 POSSIBLY LESS BUT IF FINANCE CANNOT BE SWOPPED OVER WE MAY HAVE TO KEEP THIS CAR FOR AT LEAST THE NEXT 3 YEARS - IT WAS A PRE IVA MAD MOMENT BUYING IT!

THANKS FOR YOUR ADVICE AND GLAD THINGS HAVE WORKED OUT FOR YOU, WILL LET YOU KNOW HOW WE GET ON!

LOVE BARB X

[Kazzy E]

Hi again, yes Barb they did have to run another credit check on hubby but strangely it came back fine. I am not sure whether loyalty has any bearing on it, because we have been with Mazda for two years and have never missed a payment.

Hubby also thinks that car finance is easier to get because they have something to snatch back in the event of default which could be the case??

I think you need to speak with Melanie. She was SO supportive with our situation and I am sure if she feels it is a viable option, she will tell you so. It is certainly worth a try.

If you need any other info, let me know.

Good luck, Kazzy x