Poodle Jewel wrote:Rosco532 wrote:Poodle Jewel......Do you mind if I ask ....what does ''Split the Loan'' mean.....and is this a common practice with finance Co. in this country....???...Im afraid I've never heard about this before...
Would be a shame to see some one else fall into this trap.
The whole loan all up was 16,000 but because i`m single they would only finance me for 11,000..so the other 6,000 goes ( i don`t know where) and they loan you 11 (split the loan ) BUT at the end of your usually 5 year term you still owe them that 6,000....If this had of been explained when i bought the Getz I NEVER would have gone ahead...so here i am thinking i have almost paid off my car but there is 6,000 owing. I have never heard of this either amd it seems no one i know has either.
This was common practice in the UK a few years ago and heavily critisized!
We had a similar car loan prior to emmigrating, basicaly after we had paid the initial sum off and we were left with a couple of options, either pay off the remainder in a lump sum, refinance it or return the car - as we were leaving the country we returned the car! Which meant we got a V on our credit rating (which meant that we had voluntarily returned the car, I think) but as we were moving half-way across the world we weren't to concerned as it didn't follow-us.
This does leave you with nothing to trade in or sell privatley to provide a deposit for your next purchase - but left us debt free as the private sale value or trade in value was less then the outstanding loan!