Escaping car finance agreement with negative eq

unik

Hi

I have a car on a 60 month interest free finance deal. Due to mileage I have about £4k neg eq on a car that is just over a year old (part of the neg eq is due to refinancing a previous car).

I've been offered a company car (which would work out better for me) but I need to get rid of the old car first. Anyone got any advice? Should I get a bank loan to cover the 4k? The annual saving of the company car vs. own car is about 4k a year.

Any help appreciated.

SeanG79

Have a look at your agreement as to how much you have to have paid back in order to exercise your right to Voluntarily Terminate the agreement.

Then calculate how much you will need to pay (if anything) to reach that point...that may save you on the £4k

unik

SeanG79 wrote: »

Have a look at your agreement as to how much you have to have paid back in order to exercise your right to Voluntarily Terminate the agreement.

Then calculate how much you will need to pay (if anything) to reach that point...that may save you on the £4k

Excellent advice. I will look at that now. I know that I need to have paid back half of the finance on the car so half the term in my case.

SeanG79

50% of the agreement, including all charges noted within the agreement.

thebritishbloke

SeanG79 wrote: »

50% of the agreement, including all charges noted within the agreement.

Rememeber that this doesn't specifically mean 50% of the monthly payments. It's 50% of the whole cost, including your deposit IIRC.