What'll it be worth in 2 ye

Dolby

Dolby

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Does anyone know an online calculator or formula for working out the following :

I bought a car Jan 2013 with a residual.

I know with a residual, you need to own the car for a longer to break even - so around 3.5 years. Prior to that you owe the bank and just make a loss

But if I choose to get rid of the car after 2 years in Jan 2015 ... is there a way to see what I owe them?
Like Amort table that takes a future value into account?
 
how do you determine the break even, loss figures?

do you factor in the fact that you use the vehicle as well and thus draw a benefit which is not really put down on paper
 
Purely from a financial points of view.

Obviously rough, with my Toyota I gained a little after 3.5 years ... and my Volvo lost a little after 3 years
 
Calculate and add up the following two amounts:

- Initial residual lump sum rolled up with two years of interest at the prevailing interest rate.

- Present value of payments in the remaining term at the prevailing interest rate.

You should be able to find online calculators which will calculate each portion. The value of the car can be taken from autotrader, less say 10% to 15%.
 
Just request a settlement value and know the exact outstanding amount. There's no obligation to pay.
Some of them even provide you with the means to do this online. (ie BMW Finance).
 
LOL. No worries.

I have kinda worked it out :P
 
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