Van finance

Debtboy999

Hi. I've just started a new job on the books, leaving being a self employed contractor. I'm left with owing £10700 on my van but I'm only being offered £7500 for it. Do I take the hit or is they any other options for getting rid of it? 

DeathByFluffy

What kind of finance agreement is the van on? 

Debtboy999

HP. I've only had it a year

Grumpy_chap

Debtboy999 said:

Hi. I've just started a new job on the books, leaving being a self employed contractor. I'm left with owing £10700 on my van but I'm only being offered £7500 for it. Do I take the hit or is they any other options for getting rid of it? 

If you sell the van, what transport will you use afterwards?
If you would need to buy another vehicle anyway, keeping the van (which you know) might be the best option.

I hope this is not a silly question, but is the £10.7k the "settlement figure" or the "current balance"?  The former is for clearing the finance right away.  The latter is for allowing the finance to run the full term and higher because it accrues the remaining (forecast) interest for the term.

Debtboy999

Settlement figure is 10.7k. Have a family car and now have a works van. Don't want the direct debit, as Im taking a lesser wage. 

DrEskimo

How many places have you gone to for an offer? Worth getting a few quotes as you may be able to get better.

Alternative is to apply for a £10.7k loan and then sell it privately for more and settle the remaining as soon as you can. 

Nebulous2

Van prices have been very inflated since the pandemic. They are a little softer now - but still holding up pretty well. That seems quite a big drop. 

Where have you tried for prices?

We buy any van, private sales, one of the second-hand van companies might all be worth a shout. 

I'd be inclined to take what I could get, pay it off and move on, rather than sit with a depreciating van I didn't need. 

[Deleted User]

Have the tax implications been considered? If the van’s original cost was 100% claimed against the self-employment ANY proceeds would add to the profits and increase the tax and NI bill.