Cancelling motor finance

mackemftm

Just want to know if anyone has any idea where I stand. My wife has been made redundant and as such we need to tighten the purse strings. We have a car which we bought well over a year ago but the premium is too much to cope with now we only have one income.

I have written to the finance company (Arnold Clark) but have had no reply. The contract says it is not cancellable, and we don't have the funds to settle the loan, nor is the cars current value enough to cover the amount outstanding should we sell it.

I have written to them and said that there is basically no way we can afford it any more and there is every chance we may start defaulting on the repayments if nothing can be done.

Any thoughts?

Tubbss

Hi

Is this an hire purchase agreement? If so how long was the agreement over and are there any amounts on your agreement for how much you need to have paid befor you can voluntary terminate the agreement.
Are you sure that the finance is provided by Arnold Clarke as I was under the assumption that Arnold Clarke is a delership and they will get the finance underwritten by another company?

Fergie76

I bought a car from Arnold Clarke last month and the finance was though Santander. The dealer said that they use 4 companies, couldn't tell you what they are, but it will be on your credit agreement, who you are paying and your bank statement should also tell you who you're paying your DD to.

PNPSUKNET

barclaycard, peugeot/ citroen finance , santander

mackemftm

Tubbss wrote: »

Hi

Is this an hire purchase agreement? If so how long was the agreement over and are there any amounts on your agreement for how much you need to have paid befor you can voluntary terminate the agreement.
Are you sure that the finance is provided by Arnold Clarke as I was under the assumption that Arnold Clarke is a delership and they will get the finance underwritten by another company?

It is with Barclaycard Motor Loans, this is the company I wrote to but got no reply. I remember when I was a lot younger, I bought a car, had it a couple of years and handed it back to the finance company. Cause I had paid off more than 50%, I had no outstanding debt and the agreement was written off. Don't think I can do that with this agreement though. It was over 5 years and we have had it for a year and a half.

Tubbss

hi

If you are only 1½ years into a 5 year agreement then even if it was HP then you will not have paid enough to VT and have nothing else to pay. You need to confirm firstly if the agreement is actually HP or a credit sale.

If HP then there will be a VT amount that needs to be paid in order to walk away with nothing else owing. As you will not be at this point yet the credit company MAY still accept a VT providing you pay the remaining "liability" in full (possibly from redundancy???).

If you fall behind on payments and the finance company issue a notice of default then the FULL arrears will need to be paid in full within 14 days. If after the 14 days the arrears have not been cleared then they may terminate the agreement which removes your ability to VT, the car could be repossessed and the full remaining balance on the account after the car has been sold is still owed by you.

If the car is on a credit sale then the debt is not secured against the car, but the finance company may still have an interest on the car registered on HPI which would make it extremely difficult for you to sell the car.

You need to confirm what kind of agreement you have, and then PHONE the finance company, see what assistance they can offer eg refinance over a longer period with a smaller payment or agree a payment plan till your mrs is back in work. If you make an arrangement ask them to confirm this in writing!

hope this helps