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Original poster

Should I sell my car, any advice please

30 replies

MyLifeNow20 · 07/05/2022 08:46

Hi
I have my car on lease, I have had it 2.5 years and pay £160 a month for it. At the end of the agreement (oct 23) I can hand it back or pay £6000 and keep it.
I have been looking into selling it, getting a loan to buy a car and then it is mine at the end.
We buy any car will pay £9300 for my car, I owe £8000 on it.
I would get a loan for 7-8000 and buy something else.
Does anyone have any advice they can offer please?

OP posts:
Allthegoodnamesaregoneffs · 07/05/2022 09:02

If its leased is it yours to sell? Doesn't it belong to the finance company?

Apologies if I have this wrong, not too up with the different types of car finance

BarbaraofSeville · 07/05/2022 09:06

If it's on lease, it's not yours to sell. It belongs to the lease company. They may allow you to buy it from them, and then you could sell it, but it might not be financially worthwhile to do that.

If it's on PCP, you could pay off the finance and then sell the car, but again it might not be worth doing it. If you have paid half the cost of the agreement, you can hand car back, then buy something else.

You need to talk to the lease company/PCP provider/ dealer to see what they can offer to change your car. Due to the shortage of cars now, they may be happy to help you, but it might also might make getting another car more expensive so it might not be worth doing.

But a £160 car payment for a nearly new car is quite a good deal unless it is tiny. What are you trying to achieve by changing your car? It's really not a good time to do this right now, so probably best avoided unless absolutely necessary.

Original poster
MyLifeNow20 · 07/05/2022 09:06

Hmmm good question. When I logged into my online account for the car it says I can pay the full balance off....

OP posts:

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General money
nearlyspringyay · 07/05/2022 09:06

You can't sell it if you lease it.

MayorDusty · 07/05/2022 09:07

Is there a reason you don't want to keep this car?
Wouldn't it be better to get the loan to buy your car, if I've understood correctly you would pay £6k for a car worth minimally £9300 and you know it doesn't have issues (as much as anyone can know that)

Lazypuppy · 07/05/2022 09:08

Its not your car to sell, you haven't paid for it yet.

And agree with pp £160 is a good amount for a new car per month

MayorDusty · 07/05/2022 09:08

Could be lease with a purchase option (£6k)

Lazypuppy · 07/05/2022 09:09

Yes you can pay off the full balance and then sell the car to we buy any car if you want

Original poster
MyLifeNow20 · 07/05/2022 09:09

Its a suzuki ignis so pretty small but serves me well.

I guess I want to achieve owning a car at the end of it but then I will be paying a loan off still and the car I would buy is 6 ish years old maybe older.

OP posts:
over2021 · 07/05/2022 09:10

I read this as OP would buy her car for £6k at the end of her lease using a loan- this owning the car. She'd then sell the car for £9k making 3k?

BarbaraofSeville · 07/05/2022 09:12

So you could get a loan, pay off the finance then the car is yours to do what you want with.

If WBAC will offer you £9300, it's probably also worth asking Motorway or Evans Halshaw for a price as WBAC are notorious for paying low prices.

But you should also check what else is available for sale as second hand cars are very expensive right now. Unless you need a different car, you could be setting yourself up for a lot of hassle for no benefit.

MayorDusty · 07/05/2022 09:13

Taking into account you know this car.
What could you buy with £9300 (still have a loan for £6k)?
Would you be in a better position?
To own outright and have no loan at best you could buy a car for £3300, would that suit your needs?

Original poster
MyLifeNow20 · 07/05/2022 09:15

I guess I would like a change (ideally a mini but they are expensive)
My car is 2019.

OP posts:
CrotchetyQuaver · 07/05/2022 09:16

I've always felt that leasing a car wasn't for me, all that money and nothing to show for it at the end so I think I know where you're coming from. It's no doubt designed to be a difficult trap to escape from so I'd suggest digging out the contract and seeing what your options are. As it stands it not yours to sell, I would expect you to have to hand it back and pay a penalty before you're rid of it and start all over again.

LIZS · 07/05/2022 09:16

How would you fund the lease buy out? The alternative is to finish the lease then fund a new purchase with a loan.

MayorDusty · 07/05/2022 09:20

Bluntly unless you have ample funds you shouldn't change for vanity reasons.
Cars are a money sink at best and unless there is a need (extra room needed or ulez compliance) a change is indulgent luxury.

CrotchetyQuaver · 07/05/2022 09:24

Just re read your OP. I think The only way you're going to do this is pay £6k to the garage you got this car from £6k around October time. Then you will eventually (once you've paid the loan off) end up with something you own outright.

Original poster
MyLifeNow20 · 07/05/2022 09:25

My settlement figure is £8087 so guessing I can just pay that off and the car is mine.
So was thinking get WBAC to buy it off me, I then pay the settlement fee then get a loan for new car. That might not be the correct way though!

OP posts:
Windywuss · 07/05/2022 09:30

Hope you don't mind me asking and slightly derailing but I'm looking at buying one of these but I'm undecided. Do you like it? Do you just fancy a change or is there stuff that you don't like?

Allthegoodnamesaregoneffs · 07/05/2022 09:31

MyLifeNow20 · 07/05/2022 09:25

My settlement figure is £8087 so guessing I can just pay that off and the car is mine.
So was thinking get WBAC to buy it off me, I then pay the settlement fee then get a loan for new car. That might not be the correct way though!

No, as you don't own it until the finance is paid, so you can't sell to WBAC first.

Original poster
MyLifeNow20 · 07/05/2022 09:33

Windywuss · 07/05/2022 09:30

Hope you don't mind me asking and slightly derailing but I'm looking at buying one of these but I'm undecided. Do you like it? Do you just fancy a change or is there stuff that you don't like?

I do like it yes, its ecomomical, its got the computer screen which I like. I just fancy a change.

OP posts:
Original poster
MyLifeNow20 · 07/05/2022 09:33

WBAC settle finance I have just found out

OP posts:
BritInUS1 · 07/05/2022 09:34

You need to purchase the car from the finance company before you can sell it to WBAC - it's not yours until the finance is paid off

LIZS · 07/05/2022 09:44

Has wbac seen your vehicle? The valuation is haggled for every dint, stain,scuff etc

roosnunlilei · 07/05/2022 09:48

WBAC are not going to give you anything near the settlement figure for it.

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