Car loan

Zion_2

Hi all,

Like most of the population I find myself with a car worth far less than the outstanding loan amount. The loan is not linked to the car, in essence it's a personal loan; my query is do have any options other than hanging onto the car for the duration (another 2 years) and refinance the balloon payment (£8,000)?

Any help would be great.

Thanks

ricll

I think under a hire purchase agreement you would be entitled to end the agreement after you had paid 50% of the total amount payable on the agreement and then return the car, I'm not sure you can do this on personal loan terms, maybe you could check your t&c. Also, there are car finance companies which will take your car on a part-ex even with negative equity so you might want to see that route too. You may also want to refinance the negative equity. Just thoughts.

Robert_Sterling_3

It sounds as if you are driving a hard bargain.

Zion_2

ricll wrote: »

I think under a hire purchase agreement you would be entitled to end the agreement after you had paid 50% of the total amount payable on the agreement and then return the car, I'm not sure you can do this on personal loan terms, maybe you could check your t&c. Also, there are car finance companies which will take your car on a part-ex even with negative equity so you might want to see that route too. You may also want to refinance the negative equity. Just thoughts.

I've had a look at the T&C's and it states that the contract cannot be terminated!! My fault I guess for not reading 'all' of the small print as the salesman didn't point this out to me.

I'll definitely look at the px route with other car finance companie - thanks.

BenL

Can you afford the payments?

If so, you have nothing to worry about. When I bought my car i drove it off the forecourt and the loan I had was for more than the car was worth.

I make my monthly payments and the payments made have overtaken the depreciation on the car, now the car is worth more than I owe.