James Ruppert: What to do when your finance deal is up

Matt could buy his X3 for £18k from the finance firm

Buy your financed car and flip it if the numbers are right, and then grab a used Nissan Qashqai

Here it is, the question I’m being asked on an increasingly frequent basis. Indeed, it is a bit like a game of cards and it goes something like this: “Our vehicle is coming to the end of its finance agreement. What do I do next: stick, twist or something else?”

So let’s put some meat on this. I was shooting the car-buying breeze recently with a guy called Matt, who threw a couple of other important issues into the mix. He had a three-year-old BMW X3 on finance and the deal was done on 10k miles per annum, but it has done just 8k in three years. The finance company wanted £18k for it. Matt noticed that cars of the same specification and age are retailing, obviously with more miles, at around £24k to £25k. His example, then, could potentially retail at rather more.

This is a fascinating conundrum, especially as we live in such uncertain times. The car dealer inside me believes that Matt should simply just buy it and flip it for perhaps a couple of grand right now. Using it for a year before moving it on is certainly tempting, but who knows what the residual value will be in a year’s time? There might be strong demand for a car because there may not be so many about. Then again, it might be the end of the world and everything could be worth £10k tops, or a pint of milk, or a four-pack of toilet roll.

Arguably, the best strategy for Matt is to buy it from the finance company and then have it permanently on sale, actually moving it on when he gets an offer he likes. After that, take the money, run and buy something else. But what to buy?

Would it be just another high-rise family car, which might possibly have four-wheel drive or not? Let’s face it: all anyone really needs is a Nissan Qashqai and there are millions to choose from. So here you go: with just £1999 to spend, you can bag yourself a front-wheel-drive 2007 2.0 dCi Tekna that’s covered less than 100k miles, has a full year’s MOT and comes with a panoramic sunroof.

That is an extreme, but if you got a solid £25k back, then why not go for something interestingly and depreciatingly Italian. A 2018 Alfa Romeo Stelvio with under 50k miles will be £24,500 or so for a 2.0-litre petrol in Milano Edizione spec. You’d find yourself in the same place, of course, where after a few years you end up with not much to show for all that expenditure.

Instead, it’s better to check out of that depressing car expenditure cycle into something more solid and real. A car you can afford and, if everything goes wrong, you won’t lose out on.

*What we almost bought this week*

*Audi A8:* It won’t turn too many heads but that’s the point. Stealthy, high-class luxury in an unassuming (read: bland) package. But what a bargain: £13,000 for a 4.2-litre V8 turbo diesel that is as powerful as it is hushed. This car has covered only 60,000 miles in its nine years and has an immaculate MOT history. The interior still looks fresh, too.

*Tales from Ruppert's garage*

*Land Rover Series 3, mileage - 131,625:* Of course, the great thing about having a Lorry is that adjustments can be made to just about every function with a spanner. As I have been using mine every day for a couple of months, the hard-to-close driver’s door and pop-out window were becoming a bore. There was not a lot of adjustment with the latch, but it appears to be enough. What’s more, the trim around the window was bendable. For the moment, that seems to keep the glass in place. I’m quite surprised that it hasn’t shattered in my lap.

*Reader's rides*

*Marlin Berlinetta and Westfield XI: *Thanks to Richard for getting in touch. He’s had a remarkable car history, having driven mostly oddball cars for the past 45 years. He says: “Now nearing the big 70 and finding a missing pension, I went looking for my perfect garage. I assumed I would end up with some big-engined luxury car, but after many months of enjoyably test driving cars all over the country, I ended up with these two! A Marlin Berlinetta 3.5 V8 automatic, built to a superb standard in 1993, and a Westfield XI, also built to a very high standard in 2018.

“Both offer fantastic driving experiences, although very different. Everyday driving is taken care of by my 15-year-old Lexus RX 300 – and all three for less than a new mid-range Ford Mondeo.”

*Readers' questions*

*Question: *I have a Tesla Model S. It’s been fine so far but I’ve been reading about EV breakdowns being a nightmare because they can’t be towed. Is that true? John Brown, Glamorgan

*Answer:* This is true. The electric motor is mechanically linked to the wheels and can’t be placed in neutral, so turning them with the car switched off can do lasting damage to the motor. The car will need to be flat-bedded somewhere instead if you’re stuck. But don’t worry. This isn’t news to breakdown companies. They’ll know what to do if the worst happens. DR

*Question:* I don’t have much cash and need a new set of tyres for my old Honda Civic. Am I a mug if I buy part-worn tyres? David Larkwill, Poole

*Answer: *Exercise extreme caution with part-worns. It’s not illegal for them to be sold in the UK, provided they adhere to legislation on their condition, minimum tread depth and labelling. But think twice before taking a chance on them, because they may have hidden damage or weak areas, which could result in a puncture that leaves you stranded at the roadside, or worse. There are loads of decent-value new tyres out there – so we’d say play it safe, especially if you aren’t confident in deciding whether a tyre is in good condition or not. DR

*READ MORE*

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*James Ruppert: A bitty but spacious classic for £6k? Step this way *

*James Ruppert: Interesting cars that won't break the bank*