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Downsizing car-finance | Vauxhall Corsa News & FAQs

Q&A

Added: 11 May 2008
Last update: 12 May 2008

Question

I bought a corsa on a 5 year finance deal at around 4.6% interest. It was around 5650 and with the interest will cost over 7400. I'm only 1.5 years into the deal and currently pay 101.88pm.

I am a student and am taking a course next year in which I won't be able to work and have worked out I will need to borrow about 18,000 to pay for the course and to live so I need to cut this down.

I do need to keep a run-a-round car so thought it might be better to downsize to something I can pay off straight away. Is there any way I can do this without losing out further?

Answer

Hi

I am guessing, given the price paid, that you bought a nearly new car.

Sadly, due to depreciation, it looks like you will owe very slightly more than you have paid off if you trade in right not.

Depending on what year of car you bought, the condition and mileage, if you sell privately, you may be able to break even. But you will then need to borrow money buy an older, cheaper car.

But this Corsa should be reliable, so it may be best to keep it rather than get something very cheap.

Keywords: corsa-trade-in-price, corsa-finance-issue


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