Advice please

Chris_T_3

Hi everyone i browse the forums now and again and thought i'd sign up and ask for some advice hope i dont sound like a !!!!.

took a car loan out with Barclays finance in April 2009 on 48 monthly payments of 138 a month.

So i have now paid 14 payments so say 15 almost. that don't sound alot but over 2k! lol.

Anyways straight to the point. work has cut my shifts down. and i can't afford the insurance as well as the car long
(147 pounds a month Insurance)(138 Loan)

Worked out i got 33 payments left so that would make 4554

The car i have is going for around 2800-3200 and webuyanycar.com offered me 2400

So if i sold it. i would owe around 1000 left. surely they will give me a lower settlement then 4554

I have tried to apply for a loan but no luck.

I have never missed a payment on my credit card. or the car loan so not sure why.

Any idea what barclays could do? would they allow me to pay off say 3000 and maybe let me take another loan for whats left?

Sorry im kinda new to this and being 22

Thanks in advance for any advice

Fergie76

After you have paid have, if the car is on finance (not bank loan), I think you can hand it back after you have paid half, if it's in a reasonable condition.

Rafter

Chris,

As fergie says, if it is a car finance agreement, you can usually hand the car back after 1/2 the payments.

Is this worth holding out for? Simply insure the car fire and theft only, take it off the road for tax purposes and keep making payments to see if your work situation improves.

Otherwise I can only suggest contacting Barclays and seeing what they can do. Check your contract first though to see what penalties there might be.

Good luck

R.

CLAPTON

what type of loan is it?
HP or a personal loan or what?

what does your loan agreement say about early settlement?

nelly12

If it's Barclays Partner Finance then it's will be a personal loan as they don't offer HP. Therefore no handback when half paid.

drbesty

You're paying £147 a month for insurance?! What car is it, a Ferrari?

babymoo

Beat me to it drbesty. I would strongly suggest you shop around for car insurance as that is ridiculous. Why you paying so much for insurance?

clairbear1000

You already have a loan and it would seem a credit card. You can't get another loan as you are probably already seen as over committed. If you can't afford the payments then that would be correct.

You need to read your agreement properly. Last thing you want to do is sell a car that you are unable to and still liable for.

Can you not reduce any other outgoings and certainly the car insurance. £1700 a year is extortion but then if you are young driver I guess this is the going rate.

Chris_T_3

Thanks for all the advice. The car is a honda civic sport vtec. and its the cheapest insurance by about 400 pounds a year.

drbesty

Ah well you over-reached abit, consider it a lesson learned