Welcome to the forum Scotty275.

Will you own the car when the finance is finished? Often there is a balloon payment (or similar) to pay at that point.

If the car does come into your ownership, and it's worth more than £3,000 at the time, something might need to be done. For example, there might be a few extra monthly contributions to take care of any surplus value over £3,000.

Hi TDA

Yes I will own the car at the end of the term and there will be no balloon payment. So will this be assessed before entering a trust deed and explained. I have read a lot of the treads to try understand a good bit before hand and wouldn't want the goalposts moving right at the end of my 4 years.

Thanks

Hi Scotty275.

I guess the issue is that nobody currently knows what that vehicle will be worth when it becomes yours? What would your best guess be?

We (or anyone else) can only really work with this is terms of the general principles involved at this stage.

You'll have acquired an asset which your trustee will have to take into account for the benefit of your creditors. Likewise, you can keep a car if you have a reasonable need for it. If the value does turn out to be more than £3,000 then additional payment to the trust deed may become due.

The other thing to consider is that you'll no longer have the finance payment each month. That might lead your trustee to consider than you can afford an increased monthly payment from income (if everything else remains equal).