need help with car finance i can no longer afford

whatdoidonow

It really angers me that finance companies are allowed to charge ridiculous interest rates, there should be a law against it as it preys on the desperate and the ill informed, why should any finance company be allowed to charge more than say 15%? especially on items that depreciate sooo quickly like cars.


Free market maybe, daylight robbery definitely !

There must be so many people considering VT's now, I know I am £5600 to pay, 2 years to go at £240 pm, value now £4200 trade in, £3500 private average.

one other way out is to leave it somewhere dodgy or I bet youd like to set fire to the bloomin' thing!

good luck!

Pew_Pew_Pew_Lasers!

It really angers me that people are stupid enough to sign themselves up to deals they can't afford, just to impress the neighbours. And then that the same people blame everyone but themselves for their lack of thought.

Little_John

I would read the terms of the GAP insurance, does it pay off the finance or does it just pay the invoice price of the car?

I know someone and his car got stolen one night not sure how but it happened. When I had a look at the agreement he signed I realised he had got a really bad deal similar to this paying way over the odds for a car. his GAP just covered the invoice price and he was £2500 short which he had to pay.

Read between the lines

pianeet

whatdoidonow wrote: »

It really angers me that finance companies are allowed to charge ridiculous interest rates, there should be a law against it as it preys on the desperate and the ill informed, why should any finance company be allowed to charge more than say 15%? especially on items that depreciate sooo quickly like cars.


Free market maybe, daylight robbery definitely !

There must be so many people considering VT's now, I know I am £5600 to pay, 2 years to go at £240 pm, value now £4200 trade in, £3500 private average.

one other way out is to leave it somewhere dodgy or I bet youd like to set fire to the bloomin' thing!

good luck!

The reason they charge a higher rate of interest is because the credit market deem you have a higher chance of defaulting and there fore have a higher risk,it would seem they were proved right.
At the end of the day if people with a bad credit history want finance they will have to pay exorbatant interest rates

lauren_1

Or just buy 500 pound cars

Inactive

lauren_1 wrote: »

Or just buy 500 pound cars

A far better option.;)

vikingaero

Definitely an "ouch" scenario.

The fact is that the car you were buying was probably overpriced in the first place. Add the punitive rate of interest on the overpriced product and you're talking high figures. If you took out GAP insurance that would have been added to the loan and again the high interest rates would apply to that amount. Generally on bad credit products you pay about 50 to 200 percent more than the amount you've borrowed. So if you borrow £4k then the final repayments after 4 years is likely to be £12k if GAP and PPI are added.

Bad credit finance CAN work for some people. For example my best friend got divorced. Finances in a complete mess until the house was sold and he needed a car right then and not later. He couldn't contemplate a £500 banger because he has absolutely zero knowledge of cars. He didn't even know how to check the tyres or oil levels until I showed him. But the fact was he needed a reliable car for work. I lent him £2.5k and the rest he borrowed through Welcome. I told him not to take GAP or PPI. They quoted 29.9% APR and repayments of £170ish per month. A few days after they sent the agreement he had a call from Welcome trying to persuade him to take PPI. He called me and I told him to refuse which he did. A few days after that they called him again and offered to reduce the rate to 19.9% APR but with PPI included. That still made the payments £170ish.

The point is that my friend is back on his feet, several promotions later he's paid off Welcome and is doing really well for himself. But if he couldn't have got the bad credit finance in the first place he would have been stuffed workwise and be in a worse financial position.

flava322

Pew_Pew_Pew_Lasers! wrote: »

It really angers me that people are stupid enough to sign themselves up to deals they can't afford, just to impress the neighbours. And then that the same people blame everyone but themselves for their lack of thought.

I didnt need to impress the neighbours the car was nothing fancy I rushed into a deal as my car broke down was sick of buying bangers that failed come winter and i wanted a new one which was 3yrs old with warranty, i had 2 jobs worked 8am to midnight and was earning silly money i didnt get time to spend the £2k+ i was on so i thought it would be ideal to buy a new car i didnt plan for a baby, or to lose both of my jobs due to recession i will never take out finance again life is unpredictable if you save you know you actually own the product right now im in debt to my knees hopefully this answers the question next time someone considers "should i get finance?".

Yes some people actually benefit from it but if its for an a-b commute to work, look in the auto trader. mr pew pew pew lasers i came here for help not a rant you should take out your anger on a punchbag not a keyboard it would probably be more useful then you have been in this thread

Hintza

Eight months later?

Inactive

Hintza wrote: »

Eight months later?

Indeed, it took some time to respond.. :rotfl: