How can I escape from my car finance???

Fannyann7

Help!! I brought a new Fiat 500 as I was working at the airport and needed a reliable car, I have then since been made redundant and subsequently now work in Brighton. I have no need for the car anymore as I get the bus to work! The payments are £178 a month and im really struggling to pay them. I want to just give the car back I dont care that I am going to lose money....its a massive burden and and silly mistake on my part! Its 18 months old....does anyone have any advice????? :-):eek:

LandyAndy

Is it on HP?

If so you can do a voluntary termination as soon as you have paid off more than half of the financed amount. This involves simply handing the car back with nothing more to pay, assuming the car is in decent condition.

How much did you finance. How long is the agreement? Is there a final balloon.

BillTrac

Is the car on finance or a personal loan? If car finance can you not hand it back after paying half the intiial cost? Called a Voluntary Termination or something. You need to read through your finance agreement in detail.

I am sure someone more knowledgable will be along soon to advise you.

Good luck

posted at the same time as LandyAndy

LandyAndy

Ask the finance company for a settlement figure, the amount they would require now to pay off the finance in full. If this is less than the trade value of the car you may be able to sell it to a trader who would settle the finance and give you the difference. This is possible privately but most private buyers wouldn't do it.

You cannot sell the car without settling the finance as it isn't yours.

Strider590

Fannyann7 wrote: »

I was working at the airport and needed a reliable car,

And decided a Fiat was a good idea :rotfl:

New car's nearly always having teething problems in the first years of ownership...... My friend's last car (a Fiat) needed 7 new clutch cables in it's first 12 months!

Anyway.... Not helping really! sorry!
Having never taken finance or credit to buy anything, I can't say i've got much experience to draw from, but i'll say this... When you sort out this mess make it a life long priority to never buy something that expensive if you don't have the full amount in the bank

LandyAndy

Strider590 wrote: »

And decided a Fiat was a good idea :rotfl:

New car's nearly always having teething problems in the first years of ownership...... My friend's last car (a Fiat) needed 7 new clutch cables in it's first 12 months!

Anyway.... Not helping really! sorry!
Having never taken finance or credit to buy anything, I can't say i've got much experience to draw from, but i'll say this... When you sort out this mess make it a life long priority to never buy something that expensive if you don't have the full amount in the bank

No they don't. Just buy a decent, reliable make.

Fannyann7

Thanx Guys,

Yeah well I could afford it before....just now its making things a bit tight!! I think I've only paid of around £3500 so guess Im stuck with it for a while longer....im gonna take a look at my agreement and maybe give them a call!! Prob the best place to start! Or maybe I should just ask for a pay rise haha! :-)

harveybobbles

Did you get any sort of Payment Protection with it that covers you for sickess, redundancy etc...?

Fannyann7

Ooooh and P.S. The car has been great, very reliable and also very cheap to run with only £35 a year tax!! No problems great little car I would recommend it to anyone thinking of buying a Fiat 500!! :-)

Fannyann7

NO I didnt take out payment protection....Im now in full time work anyway!! Doh!!! :-)