Car finance balloon payment - advice please

ejb1984

I am looking for some advice. I have a car which I brought new on a finance agreement with a balloon payment at the end. My 3 years are almost up and im not sure which way to go.

So I understand I cant sell the car whilst on this type of agreement and the amount must be paid in full to financier before I own the car to sell it. This could leave me paying a high repayment rate if i took a loan on what could take a while to sell the car.

I can give the car back and the outstanding balance will be cleared in full but then I have to buy a cheap car as a runaround.

The balloon figure is £8k and the car is still worth £12K so I dont just want to hand it over and loose the £4K.

I could get a loan and hope I can sell the car quickly, pay the loan in full and the leftovers buy 2nd hand car.

Or I could get a loan and make payments over a longer period, keep the car and be worse off each month as the rate I was given at the time of getting the car is better than I can get now.

I really want to get rid of the monthly repayments without loosing the car value by handing it back, anyone been in this position before and maybe used an alternative way?

rs65

You could trade it in against another car and use the £4k as a deposit.