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post #2 of (permalink) Old 30th July 2010
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Re: Sooo stressed - Company car due-4years remaining on finance-help!!

Originally Posted by KJ1984 View Post
Im really hoping someone can help me with this situation?! I am due a company car in september, which I had 2take, and am very pleased about it. However i have only had my 05 plate Megane for a year (what a year its been but thats another story) and have 4 years remaining on my finance.! :-s
I therefore have to get rid of the megane and the finance, but i think the car is probably worth about £2500 and the sttlement figure is £4500?!!! What can i do as theres no way i can make up the difference! :-(
Sorry to say it, but I think you're going to end up taking out a loan for the balance and paying it off over the 4 years, while at the same time being royally shafted in tax for having a company car.

First port of call would be the finance company to see what, if anything, they're prepared to do for you. If you bought the car on hire purchase, they might just accept it back along with a lower sum. If it's conventional credit, they probably won't be interested in the car at all.

The other thing you could do is go to your employer and explain the situation. If they're feeling generous, they might offer you an interest free loan to cover the difference. I don't think they have to declare it for tax purposes unless the total loan amount is over 5K.

I'm also not sure how a 4 year old car (at time of purchase) could lose half of its value inside 12 months. If 2.5K is what you're being offered by a dealer or one of those 'we buy your car' type websites, then you might get considerably more for a private sale.
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