Getting Rid Of My Fiesta... But Need Advice...

[bILLOO]

Howdy all!

I've decided to go travelling around Asia for a little while, so I'm planning on selling my Fiesta Zetec-S. However, I still have £5k finanace outstanding on it. I had the idea of paying the £5k to 'own' the Fiesta (but Ford Credit mention GMFV... what's this when it's at home?) and then selling it privately, then buy a cheaper car (a KA, maybe).

Is it as simple as this?

[bigdaz86]

see if this helps

GMFV

At the start of your agreement, Ford sets the Guaranteed Minimum Future Value (GMFV) for your car which is an optional final payment based upon our estimate of the minimum value of your car at the end of your agreement. It's why we ask you to estimate your annual mileage at the start and why we ask you to meet our fair wear and tear standards. The GMFV means you can benefit from lower repayments compared to a traditional hire-purchase plan of the same length. And since it's guaranteed, it also gives you protection against any unexpected fall in used car prices, so should you choose to return your Ford to us at the end of the agreement, there will be nothing further to pay*. If you choose to renew or retain your Ford at the end of the agreement, you'll need to pay the GMFV plus the purchase fee.

*as long as your car meets our fair wear and tear standards, is within the agreed mileage and your account is up-to-date

[pikestones]

Howdy all!

I've decided to go travelling around Asia for a little while, so I'm planning on selling my Fiesta Zetec-S. However, I still have £5k finanace outstanding on it. I had the idea of paying the £5k to 'own' the Fiesta (but Ford Credit mention GMFV... what's this when it's at home?) and then selling it privately, then buy a cheaper car (a KA, maybe).

Is it as simple as this?

The gmfv is what you have agreed to pay ford for the car,after you have paid 24/36/48 monthly payments.

So you owe ford however many payments you have left ,plus the gmfv value.

In a nutshell you dont own the car,you are simply renting it,with an option to buy it at the end of the agreed rental period.

Did you really not understand what you were signing up to??

Dave

D

[bILLOO]

Yes... I paid so much in cash and included my old car as part-deposit and the agreement was (or so I thought) that I had £5000 left to pay by the end of 2011 (this is what my finance papers say). But, this GMFV got me a little worried. Maybe it wasn't explained to me correctly at the point of sale.

[pikestones]

Yes... I paid so much in cash and included my old car as part-deposit and the agreement was (or so I thought) that I had £5000 left to pay by the end of 2011 (this is what my finance papers say). But, this GMFV got me a little worried. Maybe it wasn't explained to me correctly at the point of sale.

If your agreement runs to end of 2011 you have to pay another 17(?)monthly payments ,then you can give the car back and walk away with nothing.

The other option is to pay the 17 payments,plus the GFV,and then keep the car.

The whole idea of pcp is never to own a car,just to pretend you do,when one lease finishes,you just sign another one,it keeps a constant flow of new cars moving into the marketplace far better from Fords point of view.

Dave

[Amie07]

Hey, don't know anything about car finance but just thought I'd say good luck on the travelling! Best thing I ever did! I did a couple of years on and off in oz, then Malaysia and hoping 2 go 2 Africa next year. Where u planning on going in Asia?

Oops sorry back 2 cars...

[bILLOO]

If your agreement runs to end of 2011 you have to pay another 17(?)monthly payments ,then you can give the car back and walk away with nothing.

The other option is to pay the 17 payments,plus the GFV,and then keep the car.

The whole idea of pcp is never to own a car,just to pretend you do,when one lease finishes,you just sign another one,it keeps a constant flow of new cars moving into the marketplace far better from Fords point of view.

Dave

Hi Dave... that makes much more sense! Thank you! I'll phone up Ford Credit to see how much I'll have to pay. Then I'll probably sell it privately.

Hey, don't know anything about car finance but just thought I'd say good luck on the travelling! Best thing I ever did! I did a couple of years on and off in oz, then Malaysia and hoping 2 go 2 Africa next year. Where u planning on going in Asia?

Oops sorry back 2 cars...

I'm planning to go around Japan and China mostly, will see where the wind, or plane takes me. :P You've got a KA I see, are they any good? I just want a little run-around car now, although the SportKA looks quite nice!

[pikestones]

Hi Dave... that makes much more sense! Thank you! I'll phone up Ford Credit to see how much I'll have to pay. Then I'll probably sell it privately.

Hi Bill

Just be aware when you try to sell it,it isnt actually yours to sell,it belongs to Ford finance,

When your potential buyer runs a HPI check,this will become apparent to them.

The buyer should then deal direct with ford finance and settle the account.

You would then have to settle any shortfall (if there was one),before ford would release title to the new owner.

Sorry to be the bearer of news you proberbly dont want to hear,but it does seem the Ford dealer didnt dwell on the finer points of the contract you have entered into.

Dave

[Mark M.K]

Is it not illegal to sell a car with outstanding finance on it? Always thought it MUST be paid off before selling the car. Unless you do a part ex with a dealer, who will settle it for you.

[bILLOO]

I thought of part-exchage, but it seems I'd only get £8k for it. Selling it privately I'd get arond £10-£12k.

I'm going to go visit my dealer and ask anyway.

You've all been very helpful, so thanks! B)

[Amie07]

[quote name='bILLOO' date='14 August 2010 - 10:12 AM' timestamp='1281776555' post='92791'

I'm planning to go around Japan and China mostly, will see where the wind, or plane takes me. :P You've got a KA I see, are they any good? I just want a little run-around car now, although the SportKA looks quite nice!

Well the ka suits me at the moment as I mostly do town/city driving, i think it's a fun car to drive and I love how it looks, however I do wish the engine had a bit more oomph cos it's frankly embarrasing on 70mph roads/motorways, :o I think you'd prob find it hard going from a 1.6 to a ka... The older ka might suit you better or an older fiesta if you just want a run around that you're not bothered about leaving for months while you're off travelling. Pity you cant keep your car though, wish i could swap with ya! :D

[bILLOO]

Well, went to the dealer... and it doesn't seem worth it too be honest so I'm going to fund my trip another way.

I guess I would have missed my Snowflake.

Amie, you sum up what everybody else thinks... which is a shame for the KA, because with a little more 'ooph' (IE, maybe a 1.4) would have made it much more desirable as a little car!