New Job - Company Car Dilemma

Moonmonkey71_2

Hi all

I'm new to the forum although a long time reader and would greatly appreciate some help with an awkward situation I currently find myself.

I've just been offered a new job which is a definite improvement on my current role and a great opportunity.

The offered package is roughly the same salary I'm earning now but with a company car. The only problem is that I bought a car on finance (HP) a year ago and the finance is over a 4 year period. I just received the settlement figure from the finance company and it's roughly £800 - £1000 more than I reckon I'll be able to sell the car for.

Given that I'll be saving myself a couple of hundred a month I'm prepared to take a hit on selling my car however I've just been turned down for a loan by my bank meaning my options are now limited. My outgoings are pretty low and I have a fair bit of disposable income, plus I actually made a joint application with my wife. Our combined income is just over 40k pa.

I have had credit problems in the past and my Equifax score is a lowly 421 but I thought the fact that I'd been with my bank and at my current address for over 4 years and consistently paid in circa 2k per month might stand me in good stead.

There's a possibility that I can borrow the money from family but I'm reluctant to do so if I can't pay the whole sum back as soon as I sell my car.

just to add my wife doesn't drive so keeping the car isn't an option, neither is a car allowance in lieu of the company car unfortunately.

Does anyone have any advice or input?

Many thanks in advance :-)

DebtDonkey

Can you not sell the car. Use the money earned to pay against the HP? Then use the couple of hundred you save a month to continue to pay the last few payments?

BrassicWoman

DebtDonkey wrote: »

Can you not sell the car. Use the money earned to pay against the HP? Then use the couple of hundred you save a month to continue to pay the last few payments?

The HP has to be cleared before the car is sold.

Moonmonkey71_2

BrassicWoman wrote: »

The HP has to be cleared before the car is sold.

Thanks for the input but yes, pretty much as above.

I've more or less discounted trying to sell the car to someone willing to take over the finance as it seems like a lot of hassle without much likelihood of success but if anyone has a different experience of this please share :-)

Moonmonkey71_2

supersaver1000 wrote: »

Webuyanycar is worth a try. I recently got a good deal from them on my car when I was in a similar situation. Although I took on my DHs 1 year old car and sold them my almost 3 year old but immaculate polo. It may not be as good as a private sale but you will only have to borrow the difference from your family, rather than full amount. There is another similarly named company too.

Worth a try. I have heard bad reviews but my car was immaculate. They did up the offer as I didn't accept their first figure and the people I dealt with were really nice.

I commiserate as its not the best position to be in, but we just had to cut our losses. Incidentally, we keep my DHs car for 3 months to make sure the job worked out and we ended up with a better offer after 3 months in January, than we'd had in October. It covered the three months payments so didn't lose at all.

Hope that helps. Good luck.

Very helpful thank you and I did consider this but not sure if it's a viable option due to the current finance arrangement mentioned above. Also the difference in price means I'll be even more out of pocket but it's all about weighing up the pros and cons.

Thanks again.

BrassicWoman

my company offers a cash alternative to a company car - worth an ask?

Moonmonkey71_2

BrassicWoman wrote: »

my company offers a cash alternative to a company car - worth an ask?

Apparently not I'm afraid :-(

BrassicWoman

oh dear. I might SORN it to save the tax nd insurance and save like a mad thing for a few months, I am afraid.

Moonmonkey71_2

BrassicWoman wrote: »

oh dear. I might SORN it to save the tax nd insurance and save like a mad thing for a few months, I am afraid.

I'm leaning towards keeping it for maybe 3 months but will have to have a proper think.

Who'd have thought a new job would end up costing money eh!

USM

Have you worked out whether a company car is actually a good deal or not? I have a company car, cash, or public transport allowance option and no matter how many times I did the numbers, the company car was going to cost me way more than owning my own car.


The exception to this being if you're doing serious mileage.

Moonmonkey71_2

USM wrote: »

Have you worked out whether a company car is actually a good deal or not? I have a company car, cash, or public transport allowance option and no matter how many times I did the numbers, the company car was going to cost me way more than owning my own car.


The exception to this being if you're doing serious mileage.

I've had a rough look at the numbers and I will be better off but can't determine by how much until they've confirmed the make and model. As mentioned I don't have the option of a car allowance instead so I have to just try and work out how I can minimise the financial impact of getting rid or keeping my existing car.

Looks like I will be doing quite a few miles per year but whether it will constitute serious mileage I'm not sure as yet.