The wife has a fiat 500 on a monthly payment and then a balloon payment at the end of 4years if she wants to keep it , my question is if we want to change it what options do we have ....

I could ask the fiat sales guy but I wouldn't know if he was telling me the truth?

It's over 2 years since we took the finance out could we just give it back and walk away?

If we go to say mini or audi will they take the car and sort the finance with fiat if we then buy a car from them?

I've only just found out I can take it to any fiat dealer when the deals up if we wanted another fiat.

Theres nothing wrong with the car or payments it's just a case of wanting a change

Thanks in advance


Woodster

Your only option is to talk to Fiat Finance; it's their contract.

Is it a lend lease? After 4 years you have the option of paying the end fee to own the car or just hand it back?

Does the agreement say 'you will never own the car'?

Just go back to the fiat dealer walk in and say 'want to change that mate' then listen very carefully to what he offers.. Maybe going to a different dealer and seeking there opinion first is worthwhile...

I think your monthly payment is about equal to the depreciation and will be worth a lot less than the final amount....

A colleague had a Renault on one of these deals, he had to buy out of the contract to be able to give the car back, I'd guess they all work on a similar premise so best asking the financing company, their contact details should be on your paperwork. If you are not happy with what they say check with the FSA.

Usually you pay the balloon payment and keep the car or don't pay and give the car back.

As it stands Fiat own the car so you can't trade it in anywhere else.

It sounds like you are on a personal contract purchase (PCP) scheme due to the balloon payment which are slightly more complicated to get out of than hire purchase (HP) due to the balloon payment.

You have several options with PCP to get rid of the car:

Wait until the end of the 4 year term and then pay the balloon payment at the end and then sell the car privately/trade it in. PCP is essentially constructed so that you just hand the car back/trade it in at the end of the 4 years instead of owning the car outright meaning this will be the most expensive option. HP is the best option to go for if you want to own the car at the end of the term.

Wait until the end of the 4 year term and then hand the car back to the dealership, however they will do an appraisal on the car and you may be charged for any damage or excess mileage covered on the car.

Wait until the end of the 4 year term and then trade the car in, the garage covers the balloon payment and depending on what valuation you get on the car you may get a deposit to go towards the new car.

I believe you will also be able to walk into the dealership and ask to trade the car in, however you may have to put money towards it as the car most likely won't be worth enough to cover the rest of the outstanding balance.

Then there's the final option of handing the car back after 50% of the total value has been paid. This option is based off the way contract laws work in the UK, you can tell the finance company you don't want the car anymore and they have to take it off you, they also can't charge you any excess mileage charges or for any damages to the vehicle. They most likely won't be very impressed if you smash the car up, do a ton of mileage and then tell them you don't want it. There are rumours there is a black list for people who hand cars back after the 50% point, however from my research no one has been refused a car before by doing it.

With the final option the 50% of the total value is for the whole amount you would pay for the vehicle if you were to keep it, so this is 4 years of finance + balloon payment and the interest on top. This means the 50% payment point isn't at 2 year mark, it is most likely at 3 years or beyond.

As always guys really good advice .... Thank you ......now I've more idea of how things work I'll speak to fiat finance.

I had a Fiat Panda on PCP with Fiat finance and with a year left on the contract I sold the car to the trade who bought the car of fiat finance and gave me the difference. Unless you've done huge mileage a 500 will likely be worth more in trade in value than the outstanding finance.

The only real issue you have is to get rid of the car you either need to pay all outstanding money first or trade it in. You can sell it privately but it puts people off as if you don't clear the finance the car is technically stolen.

If you are considering a new car, go to fiat and ask for a print out of the outstanding value, then go around the dealers for cars you're interested in, tell them the situation and show them what's left in the car and see what they offer.