Car sitting on the drive

wilky371

I took on a car finance agreement sept 05 as the family needed to get around.
I did it on 4 year finance, however I now have the run of a company car, therefore the family car is sitting on the drive Monday to Friday, but I'm paying HP, Tax & insurance for just the Saturday & Sunday.

Can anyone give me some guidence on what to do, i.e. sell it & get less than the £10k that I owe on it or just grin & bear it.

Is there anything I could sort out with the HP people ?

LandyAndy

I think that once you have made half the repayments you can hand the car back to the HP company and walk away. I realise this isn't until Septmeber but it is an option then.

Do you need to use the car at all? What do you think it is worth in a) a private sale or b) a sale to the trade?

Ask the HP Co. for a current settlement figure. How much would you get back by cancelling the tax and insurance (only if it is on private property)?
Would this make up the difference between sale price and HP outstanding?

Wafoo

How about keep your car,arrange some agreement with the company about not using the company car,maybe a petrol allowance for yours,or doesn't this work tax ways?

SHEARERBOBS

we did this with our old car, we'd had it 2 years on a 5 year HP and voluntatrily terminated it ( i think thats the technical term!!!!). We got a settlement figure and paid it back weekly at 0%.

wilky371

Thanks for the above, made a mistake on the dates, i've only had the car since Sep 06 (6 months).

Dont really use the car at the moment, the business doesnt mind me using the work car for the weekends, just dont know how the best way of getting rid of it is ?

SHEARERBOBS

hmmm usaully have to have paid 2/3's of it off

Coveredinbees!!!!

Better question might be why on earth did you buy a 10k+ car when you're already up to you neck in debt, when you could have got on for £1000?

LandyAndy

hmmm usaully have to have paid 2/3's of it off

Sorry if I misled you.

Better question might be why on earth did you buy a 10k+ car when you're already up to you neck in debt, when you could have got on for £1000?


good Q but too late.

wilky371

The car was intended to last me for the next 5 years or so for me, wife & 3 kids. I did'nt know the company car was around the corner.

sallyx

wilky371 wrote: »

The car was intended to last me for the next 5 years or so for me, wife & 3 kids. I did'nt know the company car was around the corner.

Ok Im in a similar situ to you although I just can't afford a car full stop. First of all make sure it is a HP agreement. I thought I had HP and have just found out that its not..grrrr its a loan of sorts so stuffed.
Anyway have a look at this link

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

This might answer a few questions

wilky371

Sallyx, many thanks for the link, I will be checking my agreement tonight. X