Clearing the difference!

Mr_Ha

Hi Folks

I currently have a personal loan for a car, for which the settlement figure is (substantially) more than the car is presently worth.

I would really like this debt cleared and the car to be sold on, but I do not have the money to pay the difference which is nearly £2k

Is there any way that I can get rid of the car and the loan without paying the massive difference?

Thanks in advance

Mr H

bottleofred

Hi,

You could contact the finance company, although I'm not sure how willing they would be to sort it out. Are the payments to them all up to date or have you missed any? Someone with more knowledge than me should be able to advise you better

Tixy

Hi

Is it a secured car loan (HP) or just a seperate personal loan that you got to buy the car?
Often with a secured loan if you check the agreement there is sometimes an option to hand back the car after you have paid 50% of the finance. You could check your paperwork to see what it says.

Mr_Ha

Hi Tixy

It is a personal loan - I had a look for that sort of return after 50% paid thing but all it gives are the settlement figures after various periods of time.

Thanks

Tixy

Who is the loan company?

You could try contacting them and seeing if they might accept a lower settlement figure than the one shown on your paperwork. If its a high street bank its pretty unlikely but if its with someone else it might at least be worth the call. If it was with someone like Welcome then they would almost certainly accept less.

No chance of selling the car for more than your estimate? have you checked the price you think you might get on something like Parkers or just by looking at what other people are selling theirs for?

Mr_Ha

It was originally G.E until they were taken over by Santander. I've sent them a full and final settlement offer but i'm not sure how much success i'll have with it...I offered them about what I can get for the car, just so that I can be done with it and start again!