[Kyuuseishu]

Wanted to get some opinions around what I could do in this situation.

At the moment I currently have a 340i and I have 30 monthly payments left to make on the vehicle. I am looking at buying a flat and the monthly payments present an obstacle to my borrowing power. From my own personal calculations I can afford it, however the banks won't take much notice of that!

If I do happen to buy the place, unfortunately the car would barely be driven since I would be a stones throw from work and major supermarkets, however I would still need one for travelling home to Liverpool every so often and infrequent trips out.

My first option I was thinking is to make some early payments to reduce the monthly cost of the car (Paying £1000 reduces the monthly payments by about £35 based on my calculations) which would in turn increase my borrowing power.

The other option would be to sell the car and use that plus extra to pay off the finance, however this leaves me in the situation of getting another car for personal travel albeit at a lower monthly cost.

Anyone else been in a similar situation and would offer some advice?

[Tengocity]

If you sell the car and really only use it occasionally then would you not be better just to hire one when needed?

I have quite a lot of friends and colleagues who live in London an other major cities who do that. And Uber has made local journeys very cheap to do when required.

[A15X]

I was in a smiler position when buying my current property, I was told by my FA to say that I would be clearing the car finance before the purchase of my property...I still had the car a year into our mortgage and no one checked once I had my mortgage offer.

That was a couple of years ago and things might of changed now.

[Kyuuseishu]

Originally Posted by Tengocity

If you sell the car and really only use it occasionally then would you not be better just to hire one when needed?

I have quite a lot of friends and colleagues who live in London an other major cities who do that. And Uber has made local journeys very cheap to do when required.

My only issue with the car hire is that the trips I tend to do are not planned too far into the future. Since I would be living in Skipton, I would like the freedom to travel when needed without dealing with a hire car which needs some degree of forward planning.

[isleaiw1]

Originally Posted by A15X

I was in a smiler position when buying my current property, I was told by my FA to say that I would be clearing the car finance before the purchase of my property...I still had the car a year into our mortgage and no one checked once I had my mortgage offer.

That was a couple of years ago and things might of changed now.

not sure i would want to be that person who they decided to check before releasing the funds and they then declined to release because you still had the debt...

[isleaiw1]

Originally Posted by Kyuuseishu

Wanted to get some opinions around what I could do in this situation.

At the moment I currently have a 340i and I have 30 monthly payments left to make on the vehicle. I am looking at buying a flat and the monthly payments present an obstacle to my borrowing power. From my own personal calculations I can afford it, however the banks won't take much notice of that!

If I do happen to buy the place, unfortunately the car would barely be driven since I would be a stones throw from work and major supermarkets, however I would still need one for travelling home to Liverpool every so often and infrequent trips out.

My first option I was thinking is to make some early payments to reduce the monthly cost of the car (Paying £1000 reduces the monthly payments by about £35 based on my calculations) which would in turn increase my borrowing power.

The other option would be to sell the car and use that plus extra to pay off the finance, however this leaves me in the situation of getting another car for personal travel albeit at a lower monthly cost.

Anyone else been in a similar situation and would offer some advice?

Early repayments would reduce the debt and monthlies but also your cash and deposit - so not sure that works brilliantly.

I would either wait and buy when at end of term for car (are prices going up or not these days) or sell the car, buy a cheapie outright and then when in propoerty and all bills paid and things boufght that need paying and then look at whether you really need a better car...

Or buy a cheaper property...

[Kyuuseishu]

Originally Posted by isleaiw1

Early repayments would reduce the debt and monthlies but also your cash and deposit - so not sure that works brilliantly.

I would either wait and buy when at end of term for car (are prices going up or not these days) or sell the car, buy a cheapie outright and then when in propoerty and all bills paid and things boufght that need paying and then look at whether you really need a better car...

Or buy a cheaper property...

Since I will be going through help-to-buy I only need a 5% deposit (property will either be 120 or 130 depending on which I prefer the layout of). I can comfortably pay this whilst still having money to pay off part of the car. My reason for buying now is at the end of the term I cannot guarantee that properties of a similar nature will be available, or the help-to-buy schemes availability.

The other question is is what will I get for the car in its current state. 16 plate 340i touring (48k list with options) with about 13k miles on it.

[isleaiw1]

Originally Posted by Kyuuseishu

Since I will be going through help-to-buy I only need a 5% deposit (property will either be 120 or 130 depending on which I prefer the layout of). I can comfortably pay this whilst still having money to pay off part of the car. My reason for buying now is at the end of the term I cannot guarantee that properties of a similar nature will be available, or the help-to-buy schemes availability.

The other question is is what will I get for the car in its current state. 16 plate 340i touring (48k list with options) with about 13k miles on it.

Makes sense.

Short term loan from a family member or friend followed by a loan from Tesco or someone once house has gone through?

in respect of the valuation, not what you would hope! I reckon a dealer price would be in region of £25k but that depends on what stock they have...

[creepy coupe]

Is the car finance with BMW? if so they don't allow restructuring .

[Kyuuseishu]

Originally Posted by creepy coupe

Is the car finance with BMW? if so they don't allow restructuring .

The car finance is with BMW yes. On the BMW finance website it allows me to request a partial repayment quote for the agreement with the option of reducing the term or monthlies, so I am assuming I could do something about it?

[Broncho]

Get rid of the BMW, have a look at what WBAC offer and the classifieds and work from there, I think there is a site where you can put your car on and dealers can bid on it as well.

Get into your property and then pick up a cheap £100 per month lease until you are comfortable with all of the bills etc.

[Kyuuseishu]

Originally Posted by Broncho

Get rid of the BMW, have a look at what WBAC offer and the classifieds and work from there, I think there is a site where you can put your car on and dealers can bid on it as well.

Get into your property and then pick up a cheap £100 per month lease until you are comfortable with all of the bills etc.

Had a look at WBAC who came back offering 21.5k! Looking at autotrader, they were going for around for 26-27k minimum privately but difficult to fully check the spec since most of them don't seem very detailed.

[Broncho]

Originally Posted by Kyuuseishu

Had a look at WBAC who came back offering 21.5k! Looking at autotrader, they were going for around for 26-27k minimum privately but difficult to fully check the spec since most of them don't seem very detailed.

Have you been told by an IFA that you can't afford both?

If not I'd get some advice first before you make any decisions.

[Tengocity]

Originally Posted by Kyuuseishu

Had a look at WBAC who came back offering 21.5k! Looking at autotrader, they were going for around for 26-27k minimum privately but difficult to fully check the spec since most of them don't seem very detailed.

What's the spec... if it's good enough I might be interested!

[creepy coupe]

Originally Posted by Kyuuseishu

The car finance is with BMW yes. On the BMW finance website it allows me to request a partial repayment quote for the agreement with the option of reducing the term or monthlies, so I am assuming I could do something about it?

That's interesting. I enquired about this in April last year and was told they didn't offer such a thing.

[Kyuuseishu]

Originally Posted by Broncho

Have you been told by an IFA that you can't afford both?

If not I'd get some advice first before you make any decisions.

I am seeing a mortgage advisor tomorrow but I am just taking the initiative just in case my current finances aren't good enough. I know from my own personal calculations I can afford both with my current circumstances, but my idea of a buffer will be different to the banks idea!

Originally Posted by Tengocity

What's the spec... if it's good enough I might be interested!

The only thing which will turn people off of it is the lack of the m-sport+ pack since I didn't really want the 19" rims or the privacy glass. But apart from that the options I went with were; interior comfort, H&K, sun roof, adaptive suspension, media pack pro plus, adaptive headlights with HBA, surround view (with electric mirrors), advanced parking pack. Well what I can remember at least, all in EBII with Oyster and brushed aluminium.

[Kyuuseishu]

Originally Posted by creepy coupe

That's interesting. I enquired about this in April last year and was told they didn't offer such a thing.

I re-read my contract and it says I have the right of partial early repayment on the loan part, but the balloon payment must be paid in full.

My assumption with this means I can either reduce the term or monthlies with this. Can't see any other reason why it would be part of the finance agreement.

[creepy coupe]

Originally Posted by Kyuuseishu

I re-read my contract and it says I have the right of partial early repayment on the loan part, but the balloon payment must be paid in full.

My assumption with this means I can either reduce the term or monthlies with this. Can't see any other reason why it would be part of the finance agreement.

Might be worth phoning BMW finance.

[Xplosiv166]

Hi,

You can over pay the BMW finance loan as many times as you like during the loan period without any penalty or fees. I had a few quotes done last year, just send them an email with the monthly figure you require and they will work out the lump sum you will need to pay to make the reduction.

The car finance is with BMW yes. On the BMW finance website it allows me to request a partial repayment quote for the agreement with the option of reducing the term or monthlies, so I am assuming I could do something about it?

The problem you have will not be the monthly payments, but the entire car and balloon payment will show up on your credit report, which will be the figure the bank uses.

Silly question but would you not be better saving up more money for a bigger deposit (20%-40%) instead of buying a house now?

[Watsey]

Originally Posted by Tengocity

What's the spec... if it's good enough I might be interested!

Another BMW and he's back in the (modifications) game !

[Tengocity]

Originally Posted by Watsey

Another BMW and he's back in the (modifications) game !

A 340i tourer is tempting as I could move across some of my mods. Though not the suspension as it's xdrive only. Certainly wouldn't buy a new F3x at this point, would rather wait and see what the new 3 looks like. If there is a M340i xdrive tourer then that might do the trick.

[teaston]

Originally Posted by Kyuuseishu

My only issue with the car hire is that the trips I tend to do are not planned too far into the future. Since I would be living in Skipton, I would like the freedom to travel when needed without dealing with a hire car which needs some degree of forward planning.

If you’ll usea car that little then why not do ‘bangernomics’, you can get some pretty decent cars for £1k these days.