Car Negative Equity...am I trapped?

Vanarmo

Thanks to the rise in diesel prices and the new government tax increases that both affect my MPV, I have discovered that I owe a lot more on my PCP than the vehicle it is now worth.

I haven't yet paid off more than half of the balance which therefore procludes me from just handing the vehicle back.

My problem is that I was sign off from work indefinately 6 months ago, yet I am still having to make payments for a vehicle that I can no longer drive.

The finance company were unsympathetic and warned me that if I didn't maintain my payments, I would occur a default against my name and be liable for financial lose once the vehicle has been repossesed and sold at auction.

Selling privately would still leave me with a negative balance of circa £3k.

Can anyone advise me on how best I can resolve this matter?

Conor_3

Keep paying or take the hit. I guess you've not got GAP insurance?

anewman

Unfortunately it's just one of those things you can't control like being signed off work. Unfortunately you're also stuck in that if you sell the car yourself, the buyer will probably want to know it is fully clear of finance - which it seems like it will not be.

standupguy

Which is your least loss?

What is the amount of shortfall between what you have paid including your deposit and half the HP price?

If it is lower than £3k that may be the route to take?

Thunderbird_2

Vanarmo wrote: »

Can anyone advise me on how best I can resolve this matter?

Both, selling the car privately or letting the finance company sell it in auction will have a bad financial outcome, which you don't want, especially with a default mark in your credit file. I would keep the car if it is in a good condition. It is diesel, after all.

If I were you, I would register with all the local agencies to find work, any work. Usually, there is two types of agncies, one for manual work which you will not need to know much to do it, in any factory, just to keep the cash coming. Or, admin type of jobs agency, which, will be another option if you are familiar with Microsoft Office. Register with both, if you can. I would call them every other day to make sure they will remember my name, should a job become available.

I don't know your personal circumstances andI am sorry if you can't do the above, but, I have done it myself and found work within a week from registering with my local agencies two years ago. I told them was open minded for the types of jobs they might offer me becuase I needed work badly to meet my financial commitments and it worked for me.

Good luck

in51der

Vanarmo wrote: »

Thanks to the rise in diesel prices and the new government tax increases that both affect my MPV, I have discovered that I owe a lot more on my PCP than the vehicle it is now worth.

I haven't yet paid off more than half of the balance which therefore procludes me from just handing the vehicle back.

My problem is that I was sign off from work indefinately 6 months ago, yet I am still having to make payments for a vehicle that I can no longer drive.

The finance company were unsympathetic and warned me that if I didn't maintain my payments, I would occur a default against my name and be liable for financial lose once the vehicle has been repossesed and sold at auction.

Selling privately would still leave me with a negative balance of circa £3k.

Can anyone advise me on how best I can resolve this matter?

I am assuming that you no longer need a car at all then, if this is the case the only solution is to sell the car and refinance the loan with a high street lender I would say that you should be able to get £3,000 over 3 yrs for under £100 per month I know it’s not ideal but at least your credit rating will be protected and you will be paying a lot less than you are now. MPVs are still sought after at present but the season hasn’t got long to run so I would advise looking at Autotrader and advertising it asap.
I hope everything works out.

Cazza

Did you take out dealer finance? If you did, it might be worth you looking into whether you are eligible to return the car under the "halves and thirds" rule.