Getting company car but still 4years left on my car finance!! What are my options???

KJ1984

Hi all!

Really hope someone can shed some light on my situation for me! :-s
I have recently been told that I am going to get a company car, which has now been ordered for September. My only concern is that I already have a car which i now have to get rid of. I have only just finished paying a year off the finance on a 5 year deal! :-s
I know that if you're 50% through the deal then you can hand the car back and settle it that way, but im 18months away from that!
Any ideas please?<<

Thanks in advance!

Keiron

Quentin

Do you have to have a car (can you take an allowance instead and keep your car)?

Alternatively, if you don't want your car, you should be able to sell it (be upfront with the buyer, and get them to make payment to finance company) and pay any balance owing on it to settle the debt. Ask the finance company how much it will cost to clear the outstanding debt early.

LandyAndy

KJ1984 wrote: »

Hi all!

Really hope someone can shed some light on my situation for me! :-s
I have recently been told that I am going to get a company car, which has now been ordered for September. My only concern is that I already have a car which i now have to get rid of. I have only just finished paying a year off the finance on a 5 year deal! :-s
I know that if you're 50% through the deal then you can hand the car back and settle it that way, but im 18months away from that!
Any ideas please?<<

Thanks in advance!

Keiron

It's when you have repaid half the amount financed so if there is a balloon at the end of the deal that has to be taken into account.

First thing as to get an 'early settlement' figure from your finance company.

KJ1984

Thanks for your replies! :-)

Yes i have to have the car, i asked about an allowance but it's not an option at this stage! :-(
I think my best bet would be to ring the finance company for their advice do you think? My biggest worry is that my car is worth about £3000 and i think i owe about £4500? :-(
How does it work if i sell privately, with regards to settling the finance? The buyer would need to pay the finance company direct would they and I pay the difference? :-s

Quentin

Yes .

LandyAndy

KJ1984 wrote: »

Thanks for your replies! :-)

Yes i have to have the car, i asked about an allowance but it's not an option at this stage! :-(
I think my best bet would be to ring the finance company for their advice do you think? My biggest worry is that my car is worth about £3000 and i think i owe about £4500? :-(
How does it work if i sell privately, with regards to settling the finance? The buyer would need to pay the finance company direct would they and I pay the difference? :-s

Really?

You bought a car a year ago and financed about £5500 and the car you bought is now worth only £3000.:(

sheslookinhot

LandyAndy wrote: »

Really?

You bought a car a year ago and financed about £5500 and the car you bought is now worth only £3000.:(

The dealer will have had £1,000 profit and the rest interest and depreciation.

forgotmyname

If it was a 5 year deal the car will usually be worth less than the loan for half the loan term.

As mentioned dealer profits, setup fees and interest. Those figures sound about right to me.