Should I Buy An Old Company Car With A Loan?

Should I Buy An Old Company Car With A Loan?

Posted by on May 25, 2021 - Archived under Uncategorized

Have you been offered the chance to buy your old company car? Thinking about it but aren’t sure? Can you buy an old company car with a loan? These are common questions our Woodstock car loan team come across each week and thought would make a good blog topic.


Buying your company car can be a useful perk of your job and something that can make sense in certain circumstances. Much will depend on whether you need the extra car or are getting a replacement company car.


If you are considering buying your old company car, this post if for you!


Should You Buy An Old Company Car With A Loan?


If you’re buying your old car from a leasing company or fleet management company, you can use a car loan to buy it. If you’re buying directly from your employer, you may be better of using a personal loan as not all car loans will recognize your employer as a payee.


If you can buy an old company car with a loan, it could turn out to be a great deal.


Much will depend on the car’s mileage, condition and age. The advantage is that you’ll know how the car has been treated so far. Most company cars are also serviced regularly and well maintained, which is a definite bonus.


The downside of company cars is that they are usually higher mileage and aren’t always treated very well by their users. As this is your company car we’re talking about, you’ll know exactly how the car has been driven and whether it would make a sound investment or not!


Pricing the car


Fleet companies or fleet managers usually dispose of old vehicles at auction. Some will offer employees the chance to buy the car at a very competitive price to save themselves the hassle.


It’s up to you to decide if that price is a good one or not. Check eBay, check AutoTrader and check average car values with Kelley Blue Book.


If the car looks like a good deal and you can afford the loan repayments, there should be no reason why it wouldn’t make a good investment.


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The actual loan process is the same as it would be for any type of loan. Make sure you can afford the loan, check your credit score, save for the down payment, prepare your paperwork, get prequalified and set a budget.


Once you have all that in place, you can formally begin the loan process if that’s what you want to do.


You’ll need to coordinate with your fleet manager or company to manage the actual process but we can help you with the loan process and everything to do with the car finance.


For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!


For any questions or concerns, please don’t hesitate to contact us here!


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