Have i understood this car finance correctly?

Magandang_Buhay

Sounds like OP may have been misguided or mis-sold this finance deal.
Is that a way out for him?
I mean if you're told your total payments will be so much, and on closer inspection they are more than that, is that grounds to terminate an agreement?

rougespear

What a horrible situation to be in, these companies are the lowest of the low, at least your young and can hopefully learn from this mistake.

Since the repayments @ £540 a month are almost twice the value you budgeted for can you realistically meet them? At 22 I can't see how you can. They can probably lower the repayments but then you end up owing even more. A lot more at 40+% interest.

At 22 you probably don't have many assets, your car is only worth £4.5k max. I would seriously consider bankruptcy. Lots of negatives to consider, but I think you would lose less money and could well get you’re life back on track much more quickly.

themanbearpig

OMG you moron.

Pew_Pew_Pew_Lasers!

Sounds to me as though the salesman didn't make clear to you the difference between the interest rate, and the APR. Good grounds to get out of the deal, and use two months payments to buy a banger. Then when the banger dies, scrap it and buy another.

Oh and you're joking if you think that your car will be worth £5k in a few years time. Half that at best.

motorguy

Pew_Pew_Pew_Lasers! wrote: »

Sounds to me as though the salesman didn't make clear to you the difference between the interest rate, and the APR. Good grounds to get out of the deal, and use two months payments to buy a banger. Then when the banger dies, scrap it and buy another.

Oh and you're joking if you think that your car will be worth £5k in a few years time. Half that at best.

His best bet will be to go for a voluntary termination in 2.5 years time and hand it back.

Hintza

Posts like this just sadden me. OP can you not just get yourself an old banger for £500. Assuming you didn't have much go wrong with it you could afford a new small car for cash in 18 months instead of wasting 5 years paying for what will be by then a heap of junk.

reevsy

So come on then... what car is it?

Lithian

Just had a quick look around on some of the car sale sites, I'm assuming the OP bought a Ford Focus so adjust accordingly if its a mondeo/fiesta or whatever vauxhall equivalent.

£7k will buy a nice 2 year old focus diesel with about 30-50k on the clock and plenty of options (Aircon, cd player, leather)
£19k that the OP is spending can buy a Brand New fully loaded Focus ST-3, 222bhp of fun

£4-5k will buy a 3-4 year old diesel with 80k on the clock. This is what the OPs car is worth now in 2-3 years this car will only be worth £1500-2500!

Assuming its still alive...:eek:

chrisevison

Surely he'd be better just handing the keys back and defaulting on the loan?

Sure he'll never get credit again but that sounds like a good thing to me.
Nothing could be worse than this deal surely?

People like this shouldn't be on the road. He's foolish enough to take out a credit agreement like that and yet he'll be driving a machine capable of killing.

reevsy

I'd hand the keys in and default. Sod it. £300 a month for a 80k Focus. I could not live with that.