Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Solcom
    • By Solcom 12th Jul 17, 9:45 AM
    • 5Posts
    • 1Thanks
    Solcom
    Moneybarn car loan
    • #1
    • 12th Jul 17, 9:45 AM
    Moneybarn car loan 12th Jul 17 at 9:45 AM
    Hi,
    In march 2016 i borrowed £9500 from moneybarn for a 2008 MERCEDES CLS.
    I paid £320 a month until december 2016 when i lost my job unexpectadly.
    I had paid £2880 in total
    I told moneybarn what had happened and that i would hopefully be back working soon as i am a highly skilled engineer.
    Moneybarn werent really interested and said they eould start court proceedings anyway.
    At the end of february 2017 i set up my own business and told moneybarn payments will resume at the end of march.
    Moneybarn said that only way i could keep it is if it went to court for some kind of control order and that this will cost me an additional £1500 plus the 3 months arrears of £960 so this would now put my monthly cost upto £450
    I told them no way was i excepting this extortion and wouldnt agree to it.
    Eventually i agreed to surrender the car back to them as they told me they wouldnt just sell it for anything and a reserve would be put on vehicle in auction.
    After letting the car go back which was still low mileage and in excellant condition with full service history etc i got a letter saying the reserve would be set at £3000 which is half its trade value.
    Its eventually been sold at auction for £4100
    The trade price is £6200 and retail is £8000
    Ive now received a letter from moneybarn telling me i know have to pay the balance of £11000
    How can i still owe this amount? Thats still more than the actual cost of car 12 months ago even after £7000 has been paid in last 12 months!
    This amount cant be a reasonable figure?

    Thanks

    Paul
Page 2
    • Tarambor
    • By Tarambor 14th Jul 17, 9:39 PM
    • 877 Posts
    • 586 Thanks
    Tarambor
    Tarambor
    I had to go with moneybarn and there extortionate rates thanks to my ex partners destruction of my credit between 4 and 6 years ago.
    I had no problem at all meeting the payments until i lost my job.
    Sometimes people have no choice than to use these kind of lenders and getting into financial difficulties can happen to any of us
    Originally posted by Solcom
    You didn't have to go with them, you most certainly didn't have to spend £9500 on a car when there are 10,000s of perfectly good ones for far far less.

    You always have a choice not to use those lenders. You chose to use one when you decided to spend £9500 on a car instead of £500-£1000 which would have been more than ample.

    I now lease a brand new 40k E class threw my new business��
    Originally posted by Solcom
    Sometimes there's just no educating stupid. Seems you didn't learn the lesson from the Moneybarn fiasco. Not to worry, we'll see you on the bankruptcy board in a short while.

    BTW there's nothing impressive about hiring a £40k E class, any idiot can do that.
    Last edited by Tarambor; 14-07-2017 at 9:43 PM.
    • forgotmyname
    • By forgotmyname 15th Jul 17, 10:49 AM
    • 25,279 Posts
    • 10,035 Thanks
    forgotmyname
    High charges and high interest rates are because they lend to those that are risky and may not pay it all back. It maybe their business model.

    And in your case you proved them right, that lending is risky and keep charges high.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • dresdendave
    • By dresdendave 15th Jul 17, 2:28 PM
    • 597 Posts
    • 671 Thanks
    dresdendave
    I now lease a brand new 40k E class threw my new business��
    Originally posted by Solcom

    My main means of transportation is a pushbike but I'll console myself with the knowledge I know the difference between "threw" and "through".
    • backinbusiness
    • By backinbusiness 15th Jul 17, 3:11 PM
    • 732 Posts
    • 1,111 Thanks
    backinbusiness
    Proofreading business is it?
    DF
    • AnotherJoe
    • By AnotherJoe 17th Jul 17, 8:04 AM
    • 6,864 Posts
    • 7,290 Thanks
    AnotherJoe
    Tarambor
    I had to go with moneybarn and there extortionate rates thanks to my ex partners destruction of my credit between 4 and 6 years ago.
    I had no problem at all meeting the payments until i lost my job.
    Sometimes people have no choice than to use these kind of lenders and getting into financial difficulties can happen to any of us
    Originally posted by Solcom
    I agree with Pixie that's you deflecting attention from your own decisions again. You could have bought a much cheaper car instead of spending £19k on a Merc. This is what you were doing when you bought a £9k car at this interest rate. The payments were high and you had an insufficient buffer against being out of work, you didn't even have any credit card you could use to buffer the payments for a few months.

    As she said, doesn't help now but may help in future when considering consequences of your actions which you seemingly haven't done yet with your decision to lease a £40k car when you are "struggling" to start up your business.
    Last edited by AnotherJoe; 17-07-2017 at 10:14 AM.
    • 27cool
    • By 27cool 20th Jul 17, 7:49 PM
    • 247 Posts
    • 185 Thanks
    27cool
    "Threw"? That's an interesting way to spell "through".
    As you are the one who broke the contract. Why should they put themselves out in any way to accommodate your requirements.
    • Ray Singh-Blue
    • By Ray Singh-Blue 21st Jul 17, 10:55 PM
    • 317 Posts
    • 407 Thanks
    Ray Singh-Blue
    My main means of transportation is a pushbike.
    Originally posted by dresdendave
    I have 6 bicycles, different rigs for different gigs. I have a car too - a rusty old supermini which is probably worth less than all but one of the bikes. Being summer, it has been weeks since I used it & I can't actually remember where I parked it. One of the roads near my house probably, but will need to go for a bit of a walk round to find it. This is a lifestyle chosen carefully and deliberately, after being dissatisfied with a previous life in which I had to sit in a car far too often, getting fat.

    These days I'm no spring chicken, but am as fit as a butchers dog & the £££ saved make a nice Brucey bonus.

    Car loans- be like Zammo - just say no
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,109Posts Today

7,295Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin