Downgrading Car

Discussion in 'Banking, credit cards, etc' started by annemarief8, Jan 29, 2008.

  1. annemarief8

    annemarief8 Frequent Poster

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    Hi I need advice here beofre I approach car dealership.

    Last March we upgraded our car to a brand new Nissan Quasquai. At the time finance was not an issue and we overfinanced by 7k approx. (I realise how shortsighted we were ok)

    The issue now is this, I am pregnant and we would like to downgrade the car to maybe an 05,06 primera model or similar. Is it feasible to go into the dealership and say we need our repayments reduced by €200 a month so hook s up with a carn that can allow this to happen, or is he going to say that because we overfinanced that we are completely stuck?

    It would not be the end of the world but if we could reduce it then it means my partner could be a stay at home father for the first few months which would be wonderful.

    any advice?
     
  2. demoivre

    demoivre Frequent Poster

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    What type of finance deal do you have ?
     
  3. annemarief8

    annemarief8 Frequent Poster

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    With PTSB through the dealership. paying €640 a month repayments. Ideally this would be about €450

    One positive I can see is that we have a black Quaquai and I know there is a waiting list for the black model so he would prob have no problem selling it
     
  4. fmcg

    fmcg Registered User

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    12
    This is totally feasible and I know several friends who have downgraded expensive cars to 2/3 year old version, unless the finance package was very strict which I doubt. I cleared my car loan (got a freebee banger from my brother) with GE Money and there was no penalty for doing so early. The car dealers are familar with this scenario as its happening a lot, just not many people like to talk about it! Car dealer can renegotiate new finance deal, that is what happens if you want to upgrade your can so same thing when you want to downgrade. Make sure you find out what you own one is worth before going in, dealers and public alike use www.carzone.ie to check current prices.
     
  5. annemarief8

    annemarief8 Frequent Poster

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    thanks FMCG.

    The only problem is I do not have any capital to clear the loan or anything i like that.

    I just need the dealer to say ok I will allow you ??? on your car, the earlier model is ???? so if we add the difference on you need to finance????

    is this about right?
     
  6. annemarief8

    annemarief8 Frequent Poster

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    Well according to carzone.ie the average price seems to be €23500, I think we financed for €29900, have paid consistently for a year @€640 a year
     
  7. fmcg

    fmcg Registered User

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    12
    I didn't have capital to clear my car, just sold it and the proceeds just about covered remainder of the loan. I know its slightly different with a brand new car because they depreciate at lot (about €6-€8k) in the first year. Your car is almost a year old so you will need to be flexible in what model you go for next. Yes, the dealer will go for this no problem especially when you have such a sellable car to trade-in, he will make money when he sells it on so don't think that you should be ingratiated to him/her. Try and have the make/year/model of your car decided on before you go in rather than be foisted with a car thats not for you. check out what you would like on the carzone.ie website and find a second hand car you like/can afford and then go to that dealer who stocks it. You do not have to be tied to the dealer who sold you the Nissan. Any other dealer worth his/her salt will sort out and close your old finance and set up new finance with reduced repayments as you need.
     
  8. annemarief8

    annemarief8 Frequent Poster

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    49
    Fmcg you've been a great help thank you so much.

    I just needed to know that when I went in they wouldn't laugh me outta the shop!!
     
  9. annemarief8

    annemarief8 Frequent Poster

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    I've just found out of PTSB that the settlement figure on my car is €25,901 with €640 due to come off this in the next few days.

    a guy from a diff dealership that I had emaile, told me that he cannot see a way out of this agreement for me???!!!!
     
  10. soy

    soy Frequent Poster

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    702
    Talk to PTSB directly if the dealer cannot help.

    Other option is to get a fresh loan - 25k. Clear the existing car loan and then sell the Quasqai privately. Should be easy enough as there is a waiting list. I reckon you could get 20k for it (assuming basic 1.6 petrol model). Use the proceeds to reduce the new loan to 15k and pick up an 05/06 primera for about 10k.
     
  11. annemarief8

    annemarief8 Frequent Poster

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    49
    another nissan dealer just came back to me and said there would be no way he could do this without me putting in a large cash lump sum.

    I don't think the option of borrowing an additional loan to clear the car one would be feasible, as I already have a personal loan and the car loan is in my partner's name so they would hardly give him another loan with this €25k already in his name.

    Can anybody see any other idas as to how we could get this monthly payment reduced?
     
  12. stephnyc

    stephnyc Frequent Poster

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    216
    what i think the other posters are suggesting is:
    1) sell the quasiquai for 20K
    2) use the 20K to pay 10K off your loan (reducing the amount per month you pay - agree this with the bank first) and the other 10K towards a primera or similar

    does that sounds do-able?
     
  13. annemarief8

    annemarief8 Frequent Poster

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    Great news, 2 nissan dealerships have replied to my emails and are falling over themselves to help, onesaid he will sort us for €370 a month if we go with him as he is so desperate for a black quasqai!

    Happy days....thanks for all the help folks!