Q. Three years ago I bought an 05-plate car under a personal contract plan finance agreement. At the end of the finance period, the car has a guaranteed future value that I can pay and keep the car; otherwise I can hand the car back. What should I do if the car's actual value is different from that in the contract?
JR, Derby
A. If the car is worth more than contract value, then you can either make the payment and own the car at a knock-down price (and maybe sell it at a profit) or negotiate with your dealer to offer the car in part exchange for a new one.
If the car is worth less than the guaranteed value, the best option may simply be to hand it back to the finance company. Before you do this, however, it may be worth talking to your dealer. If you hand the car back to the finance house, the dealer gets nothing, so he may prefer to offer you an attractive deal on a part exchange, especially as times are tough.
Q. My son recently drove his 1998 Ford Escort, which he had bought only the week before for £1,300, into a bollard. The repair estimate is £1,600 but the damage is largely cosmetic to a wing, aside from a new headlight. The insurer wants to write off the car and will probably pay him about £600, after deductions for recovery, storage and a courtesy car. His excess is another £250. What do you advise?
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LG, Louth, Lincolnshire
A. On an older vehicle, it usually makes no sense to make a claim for these sort of repairs. If the damage is as minor as you say, retrieve the car right away to avoid further car hire and storage costs. Your son can probably pay off those incurred, and then make the car safe and road legal again for a fraction of the estimate. A dented wing can either be tapped into shape or replaced cheaply with one from a dismantler. Properly functioning headlamps are crucial, though, so ask an MoT garage to set these up correctly so as not to blind oncoming traffic. He should also have the steering, suspension and brakes checked.
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