Selling car on finance

tbourner

Our mistake of buying a car last year means we have a finance agreement ongoing for the next 4 years! :eek:

I think the car is worth less than is owed. But is there any way of selling the car and paying off most of it? The problem being nobody will buy the car if they HPI it and find money owed on it, and I can't pay it off because I don't have the money and can't borrow any more.

Should we just stick it out until the debt is less than the car value? Or until we can pay off the debt somehow?

please no replies about how silly we are and it's our fault we're in the mess.

Mini_Bear

You could contact the company who you pay the finance to and ask if there is anything they can offer. They will expect you to pay the debt back in full once car has been sold so it might be worth asking if they can set up an agreement to repay the difference gradually. If you are in a pickle with finances in general i would speak to the citizens advice bureau as i am sure people have had this predicament before.
Bear in mind it may be several years before the car loan is less than the cars value. depreciation is huge in the first couple of years of a cars life.
Perhaps you could try and cut back in other areas of your spending so that you can start to overpay the car finance and then sell it sooner?
Good luck whatever you decide

tbourner

Mini_Bear wrote: »

Perhaps you could try and cut back in other areas of your spending so that you can start to overpay the car finance and then sell it sooner?

If you have any ideas:
my thread