Car Loan advice needed

xXCeriXx

Hi,
Im just over a year into a 3 year car loan and havent missed any payments etc. However i'm to be made redundant at the end of march and despite my best efforrts I still havent found a replacement job and im getting very stressed about whats going to happen when the money stops rolling in.

If the worst should happen and I dont find another job what would be the best route to go down to do the least damage to my credit rating?

My mum (naively IMO) is telling me that im better off telling RBS when Im made redundant and leaving it for them to reposess it - I dont fancy this option much

Would it be possible to sell the car and pay off the finance this way? I had a large deposit on the car so I should have a few thousand left over this way to pay off my other items id bought on finance before the redundancy was announced (learned my lesson there - Ill never buy silly items that way again) and enough for a deposit on another car when Im back in employment. Im not sure how Id go about this though :S

Also if I just hand the car back - I will be losing out as I put down a 3k deposit, there is only about 3k left to pay and the car is worth about 8k.

Sorry if this makes little sense, Im pretty stressed and confused to say the least

CLAPTON

what sort of loan do you have

HP or a personal loan or what?

xXCeriXx

HP I think

CLAPTON

can you check and be sure... the options are different

xXCeriXx

Im certain its HP

CLAPTON

with HP best to read

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

come back with any queries

djwolf

This is a situation where personal loans give you an advantage as you could just sell the car and pay off the loan. With HP you're not the official owner of the car until the full balance is paid. Try speaking to the HP company and see what they say and whether they would consider allowing you to sell the car if you pay the balance immediately.