nordberg Posted November 10, 2008 Report Share Posted November 10, 2008 Guys, I'm facing a dilemma. My motor is now in a state of negative equity. I owe just over £14k on it and it's worth approx £12k to a dealer. I have a get out clause in my HP agreement with VFS that says as long as I've paid 50% of the loan back, I can hand the vehicle back with no penalty. I'm about £1k away from the 50% mark. So - I think it's best to get shut now as I can only see things getting worse. I can't decide whether to pay off the remainder and give it back as soon as possible, or just continue with the normal repayments for another 2.5 months which will pretty much make up the current shortfall. I get a company car allowance of roughly £440 after tax. At the moment, my repayments on my current car eat 90% of this up. Given the current state of the economic world, I plan to get something that is significantly cheaper to run and that will, hopefully, leave me with some money from my allowance to put toward running the car (eg insurance and RFL etc). With that in mind, I'm thinking a personal lease is good option. Does anyone here lease their car? I'm keeping an eye out and hoping that some of the monthly prices will come down a bit in line with BOE announcement last week. Any suggestions or advice on this matter very welcome!! Link to comment Share on other sites More sharing options...
shao_khan Posted November 10, 2008 Report Share Posted November 10, 2008 Gave my A4 back to finance company at 50% mark. I had a late B6, saloon, petrol and the B7 killed the residuals with it being a sallon, etc as well didnt help, so obvious choice was to let someone else worry about it. Do you have to have a cerain age car to qualify for the allowance or do you ge the allowance regardless? I only ask as a mate at Siemens has to run a car less than 4 years old or no car allowance. Do you need a new car - could you run something older / cheaper for a few months and see how the market goes? Link to comment Share on other sites More sharing options...
nordberg Posted November 10, 2008 Author Report Share Posted November 10, 2008 Gave my A4 back to finance company at 50% mark. I had a late B6, saloon, petrol and the B7 killed the residuals with it being a sallon, etc as well didnt help, so obvious choice was to let someone else worry about it.Do you have to have a cerain age car to qualify for the allowance or do you ge the allowance regardless? I only ask as a mate at Siemens has to run a car less than 4 years old or no car allowance. Do you need a new car - could you run something older / cheaper for a few months and see how the market goes? Hi, Whilst there is no official take on the age of the allowance funded car, anything more than a couple of years would be frowned upon. Part of me thinks getting a new car now is a bad idea, but with money being so expensive these days, I'm loathed to enter into any kind of finance deal unless I absolutely have to. Hence, the idea of leasing... Link to comment Share on other sites More sharing options...
edo Posted November 10, 2008 Report Share Posted November 10, 2008 Personal loan and a nice low mileage 1-2 year old car in warranty. Link to comment Share on other sites More sharing options...
shao_khan Posted November 10, 2008 Report Share Posted November 10, 2008 I think you'll find that a lot of car manufacturere finance will be cheaper than personnal loans in the current climate. Link to comment Share on other sites More sharing options...
nordberg Posted November 10, 2008 Author Report Share Posted November 10, 2008 A brief browse in t'interweb suggests I'd be looking at 8% APR over 5 yrs for a 15k loan. Then I have to contend with depreciation etc...which is why I'm attracted to leasing. Link to comment Share on other sites More sharing options...
Recommended Posts
Please sign in to comment
You will be able to leave a comment after signing in
Sign In Now