Need help with making decision on my car finance situation.

Gawron1910

Hi guys I need an advice regarding paying off my car finance I currently own Honda Civic 1.5l 2017 Fk7 MK10. It’s reaching 100.000 miles and I paid off nearly 3 out of 5 years of the finance on it (£8.100 left to pay). I have decided that I will leave the UK forever next year due to family issues and I am trying to think of my best options. I have to travel to work everyday about 80miles so by next year mileage will be even greater when I will be ready to leave.

 My options are: 1. Terminate the finance and return the car as I already paid off 50% so I can do that and buy some cheap car to keep me mobile until I am ready to leave the country. 2. Keep it and pay the 8.100 off earlier (money isn’t a big issue here as my income is 38k a year after tax). 3. Terminate the finance just before leaving the country. (It’s a reliable car I am very convinced nothing will break over next months so the only cost I pay for it is 320 + 110 insurance per month. 4. Sell it to someone privately and pay the finance off for that money.

 I am not sure how returning the car to lender works, will I have to pay for any damage that’s done to it? Over years of owning it the car had some scratches done to the front and rear bumper, front windshield have some minor scratches but that’s about it. I kept the car in very good condition otherwise. Also I’ve changed the oil myself as I am good with mechanics every 3-6k miles, did breaks myself so I don’t have the service book updates to show them that except my receipts for the oil I used (always used OEM Honda parts for everytning).

DrEskimo

You have the option of selling it to any dealer or garage as well, which although you won't get as good as of a price as selling privately, does mean you don't need to worry about settling the finance first yourself. Quick look on AT suggests a 2017 model with that sort of mileage still would fetch over £8k private sale, so giving back to finance company seems like a last resort (not to mention any additional payments for wear and tear they may bill you for).

However that doesn't sound like an issue anyway, so why not pay it off today anyway? What is the APR on the finance? Is it a PCP finance deal with a large final payment, or just a straight HP finance deal where you pay a fixed amount for the whole term?

If you have the funds I would settle finance now, save on the interest, and then just keep it until you are due to leave and then sell privately or to a dealer/garage depending on what you prefer at the time.

born_again

What sort of finance are you talking about?

Gawron1910

born_again said:

What sort of finance are you talking about?

Hire Purchase

Gawron1910

DrEskimo said:

You have the option of selling it to any dealer or garage as well, which although you won't get as good as of a price as selling privately, does mean you don't need to worry about settling the finance first yourself. Quick look on AT suggests a 2017 model with that sort of mileage still would fetch over £8k private sale, so giving back to finance company seems like a last resort (not to mention any additional payments for wear and tear they may bill you for).

However that doesn't sound like an issue anyway, so why not pay it off today anyway? What is the APR on the finance? Is it a PCP finance deal with a large final payment, or just a straight HP finance deal where you pay a fixed amount for the whole term?

If you have the funds I would settle finance now, save on the interest, and then just keep it until you are due to leave and then sell privately or to a dealer/garage depending on what you prefer at the time.

APR was not too high 9.9%, the finance is HP. I think I may keep it until I will be ready to leave and sell it for whatever anybody gives me for it, after a year it will be approx 4k left to pay so I maybe someone will still give me about 4-5k for it. If I can still make about 1k profit after selling it I would consider it a great success. Thank you for your responses guys