RCI Car Finance - need some advice

walkiesn

I was wondering if anyone could give me a bit of advice. I bought a Clio last April and am paying £217 per month. Since then my income has changed and I cannot afford to have the car. This is coupled by the fact that I have lost my license on medical grounds, so I am faced with an additional outgoing of £200 per month on public transport. I have spoken to RCI on a number of occasions and the only advice they can give me is to sell the car, or hand it back early with a short fall of £2700 that will need to be paid (which I cannot afford).

I have given them a detailed list of my outgoings, showing I cannot afford the car. I have just be told there is nothing they can do, they are not open to negotiation.

Can anyone give me any advice on what to do, the car is not in arrears at the minute, but the December payment will not go through (my credit rating is bad enough and I was trying to afford defaulting on payments).

Thanks

maninthestreet

Sell the car, as already suggested.

walkiesn

even if i sell the car, i will still have a shortfall of about £2200, so i'll not really be better off!

hewhoisnotintheknow

walkiesn wrote: »

even if i sell the car, i will still have a shortfall of about £2200, so i'll not really be better off!

I'm afraid that's the risk of buying a car on finance


Cut your losses asap

Premier_2

walkiesn wrote: »

even if i sell the car, i will still have a shortfall of about £2200, so i'll not really be better off!

£2200 shortfall plus the £1200 you've already paid in just 6 months? :eek:

Sounds like you overpaid in the first place, signed a crazy credit credit agreement, or both!

Oh well, you live and learn ... hopefully.

gilbert_and_sullivan

Sorry matey, but i have to agree with the above.

get shot and learn from this never to take finance out again, it often ends in tears.

adamj121212

Find a way to keep up the payments until the car is worth what you owe. You would usually build equity over the 3 year period. Is it a 3 year deal? Do you have a balloon payment? Lease it to a friend?

If you sell the car privately surely you wouldn't still owe as much as you would get more for it than they're saying it's worth.

Look up the book price for the car (Parkers guide) and re calculate the figure.

Unfortunately any new car will lose a large amount of money mostly over the first year or 2 and then less after. If you take a car on finance this isn't as noticeable (providing you use the car and pay for it) as toward the end of the agreement you will owe less than the value.

I have had good experiences with car finance and find it an affordable way to own a very nice car. I've bought new and built equity over the 3 year deal then chopped in for new again and my payments become lower and lower through the equity (usually about 3k) built up in the previous car.

The bottom line is that a car is never really an asset and most of your money goes in the bin but if like myself you value driving something nice, new and reliable and you can afford the payments then it doesn't have to be a bad solution. Infact, with the very low interest rates (I'm paying 3.9 but there are 0% deals if you have a bigger deposit) you'd probably actually be a bit crazy to buy a car for cash!

I know I probably haven't solved the above dilema but I just wanted to add a different view on the finance thing. I would never buy a new car for cash. I would much rather invest that cash in something that wasn't always and constantly devaluing.