Stuck paying for two car loans.

FreelanceX

Hi all, I am new here, as you can guess. Just looking for some financial advice please!

OK my situation is this. 7 months ago I bought a car on finance, and last month it got wrote off. (Not my fault, but 3rd party has yet to admit liability)

Now I foolishly did not take GAP insurance. Due to this I owe more than I got for the car from my insurance company. I am left with about £1500-£1750 difference.

Unfortunately, I am unable to get my excess back at the moment due to the 3rd party blaming me. (I will win 100% guaranteed.) So that means at the moment I owe over £2000 on the car.

Now I needed a car quite badly, as my fiancee lives quite a few miles away and I needed it to get to work etc.

So I have gone and bought another car on finance. I did this thinking I could get a loan to pay the remaining £2000 off, over 2 years; putting my excess of £750 towards it when I get it back, plus whatever my solicitors win for me for whiplash.

This in my head all worked out ok. I knew it would be tight for a little while, but I thought give it a few weeks and Ill get the money I am owed and I can pay a 2 year loan off in a few months.

Problem is now, I cant actually get a loan. Because I have two finance deals ongoing (a £12000 and a £6000). Because of this, I am paying almost half my wages out a month on two cars, one which I dont even have anymore.

Plus, because the damn person who hit me is saying it was my fault, I am having to wait a long time to claim back what I am owed.

So right now I am in a very tight money situation (for me that is. I know some people on here are far worse) and need some advice on what to do.

I have been told I could get the payments of the old car finance reduced, but I do not know how to be successful with that.

Apparently, according to experian, my credit rating is now 489 due to all this going on (plus because I owe £600 on credit card), where as before it was about 700.... Hence me not being able to get a loan....

Please help? Any advice is appreciated. And before anyone says I shouldnt have brought another car... I know... If I could have waited for 6 months I would have. But that was not possible.

Thanks guys/girls.

savingmummy

A small run around would of done, BUT as you say too late now!
Have you conracted the `old` car finance about repayments? That may be a first step.

I have no other concrete advice at all tbh, but bumping this up for you incase someone can help!

thespudman

I am assuming both cars are on HP? Well the original finance company no longer have any security due to the car being written off. So your priority would be making sure that the 2nd car finance is paid to enable you to keep that car. You could make token payments to the first car finance company and they would have to follow the standard unsecured creditor recovery procedure as they have notihng to reposess - but all this really depends if you are wanting to try and keep a decent credit score or not. Try contacting the first car creditor and ask them if you can reduce your payments - they might be more inclined due to them not having the back up of re posessing the car ( as it is written off)

hope this makes sense

FreelanceX

Thanks both for advice. I believe you are referring to sending them an income and expenditure form and proposing how much I am willing to pay?

I will have to get onto this asap then and see what they say. I assume i could be quite successful as the car no longer exists?