New Job - Company Car Dilemma

SeanG79

supersaver1000 wrote: »

Don't forget you can make extra payments to the car loan so that at least you'll be saving a bit of interest maybe (instead of saving the £1000 just pay it off the loan amount). I could make any payments off my VW finance loan and saved the interest.

Great advice, but what does that have to do with the OP's situation?

gycraig_2

Your getting a pay rise and a company car, keep paying it for next few months then sell it when the value of the car matches the value of the settlement figure.

gycraig_2

ReadingTim wrote: »

Unlikely - the car is simply a perk of the job/grade etc, and therefore it's within the company's gift whether to offer it (or not), and what (if any) the alternatives to it are. I've worked at places where it's either the car or nothing, so it's not that unusual.

Just tell them you have a car already, and won't be taking them up on their offer for a few months while you decide what to do with your existing car.

The car would be taxed insured etc by company so he'd be better off running both and keeping miles on his car lower

SeanG79

Your getting a pay rise and a company car, keep paying it for next few months then sell it when the value of the car matches the value of the settlement figure.

All the while the car is also devaluing, it is 1 year into a 4 year agreement...so you would advocate paying potentially another 12-18 months payments, insurance and road tax until the car value and settlement figures match?

gycraig wrote: »

The car would be taxed insured etc by company so he'd be better off running both and keeping miles on his car lower

Maybe he could keep his car until his probation has ends on his new job, but other than that, his best solution is to get rid of the finance as soon as he can...(if the bank will allow him to sell the vehicle and maintain his current payments until the shortfall has been settled, that would be the most cost effective solution aside from having the shortfall or being gifted the shortfall.)

Moonmonkey71_2

Thanks for all the input everyone. Some good advice there and plenty for me to think about.

Just to add though I'm actually taking a very small pay cut of £420 per annum which is partly why the situation is a bit tricky. Factoring in the car and running costs I'm only really better off once I sell my existing car. Sorry but I neglected to mention this earlier in the post!

Moonmonkey71_2

A quick update........

I have asked about deferring the company car for 3 months in order to save on the additional tax on my salary and it looks like they might agree to this. The thing now is that I'll be racking up miles on my car and potentially lowering the resale value.

Is there a simple way to calculate the settlement figure on a loan so I can work out where I stand in 3 months time? I think I now have all of the options, I just have to work out which is the best one.

Thanks

Moonmonkey71_2

A quick bump just to see if anyone has some guidance on calculating the settlement amount of a loan/HP

Thanks in advance!

comeandgo

Is it an HP agreement? It's usually in the agreement you can just hand the vehicle back after you have paid just over half of the agreed payments.

Moonmonkey71_2

Hi comeandgo yes it is a HP agreement but it will be another year until I reach that point unfortunately.

Thanks for the quick response though ;-)