Should I Buy A Company Car With A Car Loan In Acton?

Should I Buy A Company Car With A Car Loan In Acton?

Posted on May 18, 2021

Sometimes, employees ask their staff to buy a company car from them. It’s a great way for them to offload old vehicles and offers a cheap way to keep driving a car you already know. But is it a good idea to buy a company car with a car loan?

Buying your old company car can be a good deal but, as usual, much depends on the car, the offer and your situation. Our Acton auto loan takes it from here.

Buying your old company car

Many larger employers or fleet companies will offer to sell your old company car to you at the end of its company life. The alternative is to send it to auction and that can be a hassle and not make much money.

Some prefer the goodwill generated by offering great deals on old company cars.

Whether it’s a good idea or not depends on the car’s age, mileage and condition and the price being asked.

It also depends on your personal situation.

The advantage of buying your old company car is that you know it. You know it’s history, how it has been driven, how it has been maintained and just about everything about it.

The disadvantage of buying your old company car will be tied to mileage and condition. If you did a lot of miles in the car, it may not be a good deal. Higher mileage cars are worth less, require more maintenance and may have a higher parts and labour cost.

Company car price

At the end of the day, your decision will likely be based on the price being asked.

You can check average car values with Kelley Blue Book. It’s an accurate source often used by the auto trade to decide on car values.

If the offer is competitive, consider buying it. If the offer doesn’t stack up, don’t.

Acton auto loans and company cars

You can use an auto loan to buy a used car. They are designed for exactly this kind of situation. You’ll pay a slightly higher interest rate than for a brand new car but otherwise the process and the loan itself is exactly the same.

If you have the option to buy your company car, check your credit score, see how much of a down payment you can put together and get prequalified for the loan.

Then you can make an informed decision about whether you can afford it, whether it makes financial sense or whether you should just let the car go and get another company car instead.

There is no right or wrong answer here. If you can afford the Acton auto loan, you can use it to buy a used car. If you cannot afford it or the fleet company is asking too much, pass and make other arrangements.

If you do need that Acton auto loan, you know where to come!

Contact Unique Chrysler for help, advice and competitive Waterdown car finance and leasing.

Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!