Discussion
I have car finance running and the family car engine is completely dead and we need another car i have approached various car finance company I have been rejected for poor credit and the garage is asking me to come collect the car i am just confused do not know what to do i seriously need an urgent advice on how to refinance and get another i and my family will be very appreciative of any solution to our problem we seriously need another car. Thanks
BB79 said:
Honda Jazz 2014 my wife said the car was overheating and the garage is saying fixing the engine will cost 2000 pounds and advised i go for a new car instead of spending that amount on the car and its on finance with a balance of 3400
If the remaining balance is £3400 you’ll need to pay that anyway. 2k for an engine isn’t ideal but it’s probably your cheapest option. A quick look on eBay shows 2014 jazzes as being about the £6-8k range. It must be worth repairing at that price, broken it’s worth scrap value so you’d need to borrow enough to buy another car.
Edited by Speed addicted on Wednesday 28th February 13:35
To add: the issues you have with poor credit history etc - you are not really going to overcome these. See them as a separate issue to the dead car.
Dead car: get some more detail about what it is that is broken and will cost £2k. Share that here as there are many knowledgeable people.
It seems the £2k for a new engine will be cheapest route.
Dead car: get some more detail about what it is that is broken and will cost £2k. Share that here as there are many knowledgeable people.
It seems the £2k for a new engine will be cheapest route.
BB79 said:
Honda Jazz 2014 my wife said the car was overheating and the garage is saying fixing the engine will cost 2000 pounds and advised i go for a new car instead of spending that amount on the car and its on finance with a balance of 3400
Sorry to hear about your situation, the facts are that you still need to pay the finance so there's no way out there.I'd suggest getting a personal loan & repairing the car.
You won't be able to refinance, I hope you get sorted.
I can't see how you are going to refinance your car, essentially you would have to find a load for the outstanding balance of £3400 plus whatever your new car will cost, which will likely be significantly more than £2000, therefore in the circumstances it makes more sense to put another engine in your existing car if that is really what it needs.
Financially you will be better off repairing your car
Financially you will be better off repairing your car
To answer your questions OP -
No, you can't refinance the car to pay for it's repairs. The finance on the car is simply a loan ( presume HP agreement here) that you pay in monthly instalments. Repairs and Running costs are something else you have to pay on top from your own pocket.
Given the car is basically scrap with a dead engine you might get £300 back "weighing it in" to your local car scrap yard leaving you £3100 to pay to get out of the finance (£3400 - £300).
You are then in the difficult situation of finding another car with i presume no money available for downpayment. This is going to cost you even more than the £3400 you currently owe on the existing car.
Given the scenario and presuming the Jazz is otherwise in good repair it would be cheaper for you to pay the £2000 to have a new engine fitted, if that is what is required (what is the issue with it?).
Where you get the £2000 from is another matter and if your credit is bad i assume you won't have access to 0% credit cards? Have you looked at this site https://www.moneysupermarket.com/credit-cards/bad-...
I don't condone borrowing more to get you out of hole however if there is no way forward at least borrow as cheap as possible.
Another option would be to find a personal loan that you can get the £2k + the £3400 on finance into one monthly payment. Look at the %APR on your car loan and compare to what is available on the personal loan market.
No, you can't refinance the car to pay for it's repairs. The finance on the car is simply a loan ( presume HP agreement here) that you pay in monthly instalments. Repairs and Running costs are something else you have to pay on top from your own pocket.
Given the car is basically scrap with a dead engine you might get £300 back "weighing it in" to your local car scrap yard leaving you £3100 to pay to get out of the finance (£3400 - £300).
You are then in the difficult situation of finding another car with i presume no money available for downpayment. This is going to cost you even more than the £3400 you currently owe on the existing car.
Given the scenario and presuming the Jazz is otherwise in good repair it would be cheaper for you to pay the £2000 to have a new engine fitted, if that is what is required (what is the issue with it?).
Where you get the £2000 from is another matter and if your credit is bad i assume you won't have access to 0% credit cards? Have you looked at this site https://www.moneysupermarket.com/credit-cards/bad-...
I don't condone borrowing more to get you out of hole however if there is no way forward at least borrow as cheap as possible.
Another option would be to find a personal loan that you can get the £2k + the £3400 on finance into one monthly payment. Look at the %APR on your car loan and compare to what is available on the personal loan market.
Hmm, OK OP, firstly, it looks like a 2014 Jazz is worth at least £6k, so the good news is I agree with the poster previously that it's worth fixing.
I can see a couple of primary options here.
- find the money to get the engine repaired/replaced, keep the car
- sell the car to someone else who can repair it, at a price that gets you out of the outstanding finance
I also agree it's worth getting a second opinion/alternative quote for the work.
You could also consider buying a cheap car for £1k or less as an immediate solution while you sort out what is going on with the Jazz.
I can see a couple of primary options here.
- find the money to get the engine repaired/replaced, keep the car
- sell the car to someone else who can repair it, at a price that gets you out of the outstanding finance
I also agree it's worth getting a second opinion/alternative quote for the work.
You could also consider buying a cheap car for £1k or less as an immediate solution while you sort out what is going on with the Jazz.
InitialDave said:
Hmm, OK OP, firstly, it looks like a 2014 Jazz is worth at least £6k, so the good news is I agree with the poster previously that it's worth fixing.
I can see a couple of primary options here.
- find the money to get the engine repaired/replaced, keep the car
- sell the car to someone else who can repair it, at a price that gets you out of the outstanding finance
I also agree it's worth getting a second opinion/alternative quote for the work.
You could also consider buying a cheap car for £1k or less as an immediate solution while you sort out what is going on with the Jazz.
If the Jazz is worth £6k running then it would even be possible to buy a shed for £500, repair the Jazz for £2k (could be less if you shop around), sell the car and pay off the £3,400 finance and make £100 profit.I can see a couple of primary options here.
- find the money to get the engine repaired/replaced, keep the car
- sell the car to someone else who can repair it, at a price that gets you out of the outstanding finance
I also agree it's worth getting a second opinion/alternative quote for the work.
You could also consider buying a cheap car for £1k or less as an immediate solution while you sort out what is going on with the Jazz.
How you pay for all of this up front is a different matter considering your credit issues but the point I'm making is that this isn't a problem that is impossible to get out of.
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