Question:
I bought a car on residual 18 months ago, but am thinking of selling it since I own a second car.

Is it a good idea to sell it or should I keep it for some time? What am I supposed to know when I decide to sell it?

Answer:
The first thing you need to do is to get a settlement figure from the bank in order to establish how much you still owe them.

The next thing you need to do is to establish the value of your car. If you take it to a motor dealer they will probably offer you far less that what you could get in a private sale.

Have a look in Auto Trader magazine or go online to see what cars of your make and model are selling for. If the asking price for the car is more than what you owe the bank then you can sell it.

However, there are often nasty surprises for the owners of cars bought on a residual when it comes to selling them. This is especially true early on in the lease.

If the settlement figure exceeds the value of the car you may have to pay in to get rid of it. So if your other car is paid up it you may be better off selling that one.