Car finance dilema, any advice??

markey77

Hi all

Hope some one can help me out one way or another here, really don't know where I stand with my car and the finance on it.

Basically, I got a 52 plate ford mondeo on finance last april, good car, no probs etc. However, 3 months later my other half fell pregnant again (unexpectedly!) and we already had 3 kids, so this was number 4. The baby came along last month and obviously now we can't all fit in the car and could really do with a 6/7 seater but I still have 2 years to pay on the finance.

We can't take out any more finance as we are on a DMP with CCCS and don't have the cash to buy anything else outright. Does anyone know if there's anything we can do to get another car? For example, would the finance company (Santander) transfer the finance to another vehicle of similar value? Any ideas? We live in a small town and the thought of not being able to take the kids for days out etc for the next 2 years is a bit depressing!

Thanks in advance to anyone who replies, even if it is to say that we're lumbered, be good to know one way or t'other!

jonesMUFCforever

IMO last paragragh is the one you are stuck with.

Public transport here you come I think.

markey77

Thanks, that's kind of what we were thinking. I wouldn't mind but the public transport round here is awful but nevermind. We might be able to scrape together enough for a cheap people carrier in a few months.

Aron - I came on her for advise, so please keep your smart alec remarks to yourself.

CLAPTON

Congratulations on the baby.

What sort of finance is it.. HP or personal loan

How much is the car worth?

If it's a persoanl loan then there is nothing stopping you sell the car and buy what ever you can afford.

If it's on HP then how long is the term? you will need their permisiion to sell the car but usually they will allow this as long as they get paid. However, you will then need to finance the new car.

markey77

Thanks Clapton. It's on HP, which is a pain, otherwise I would just have sold it and bought what we needed. I still have 3.5K to pay on it and I wouldn't say the car is worth that, especially not in this financial climate. Ah well, just have to get the overtime done and start saving!

CLAPTON

You can do a voluntary termination after half the finance has been paid (i.e. return the car and owe nothing) ... however your credit file will show a VT so it may discourage HP creditors from extending HP credit in future.

cyril82

Most finance companies will agree to a transfer of the finance onto a new car of equal value, especially if purchased via a garage as they trust businesses more.

i have done this before. the only problem you will face is the fact that when trading in the garage wont give you market value, so you'll need some cash to bridge the gap, or you'll need to ask the finance company to extend your loan.

Also some companies will arrange for you to sell the vehicle through one of their approved dealers if you need out of the finance and the car is worth what is owed, or prefrably more.

my advice, if you have not paid at least 1/3rd dont mention VT to your hp company, i once did this and they repo'd the vehicle despite being upto date on payments, they just didn't take the payment the month after i enquired and repo'd the car, i took them to the ombudsman and won but i'm assuming you don't want that hassle. also i wouldn't have mentioned my experience, as i don't think all hp companies would do that but my hp was with Close motor finance and they own santander so be careful.

markey77

Thanks Cyril82, I think I'm going to get in touch with Santander and see if they can do anything, even if it does mean extending the loan slightly. Not really what I wanted to do but better than shelling out for a car that isn't really any use to me. Fingers crossed we can resolve it somehow!

Forris

Be careful if you are thinking about extending the loan amount. My understanding is that the rules of a DMP state that you should not take on any further debts. Might be worth checking with CCCS first.

angelicmary85

markey77 wrote: »

Thanks Clapton. It's on HP, which is a pain, otherwise I would just have sold it and bought what we needed. I still have 3.5K to pay on it and I wouldn't say the car is worth that, especially not in this financial climate. Ah well, just have to get the overtime done and start saving!

Are you sure it's HP...I just found that my 'HP' agreement is actually a personal loan!