car finance - urgent help needed

54druids

bought an expensive car on finance when before the proverbial hit the fan. Now need to decrease this debt. Am 32 months into a 43 month contract and already over the completion mileage. We need a car clearly not this burden. Was wondering if it was possible to get a smaller car and refinance to decrease the debt or is this a stupid idea.

forgotmyname

43 month plan and over the completion mileage? Is it under a lease contract or hire purchase or a personal loan?

You dont make it clear what sort of finance deal you have.

Makes a big difference.

54druids

Sorry head done in at the moment. It is a hire purchase agreement

standupguy

take a look at the paperwork
Is it a regulated or unregulated agreement?
What is the cars current value in your estimation?
Phone the Finance company and get a current settlement quote

Once these factors are known we can advise you better

LandyAndy

54druids wrote: »

Sorry head done in at the moment. It is a hire purchase agreement

Then it may be best to do a voluntary termination.

If you have paid more than 50% of the whole amount due under the agreement you can hand the car back with nothing further to pay. Good if you owe more than the car is currently worth. Remember to include any final balloon payment in your calculation. The finance company will tell you if a Voluntary termination is possible. You may have to pay to repair any damage over and above normal wear and tear.

54druids

It is a regulated agreement. Settlement figure is just over 17k and i reckon car may be worth about 15-16k at the moment.

standupguy

54druids wrote: »

It is a regulated agreement. Settlement figure is just over 17k and i reckon car may be worth about 15-16k at the moment.

1. Investigate terminating the agreement under the half rule (if you have paid half the hp price shown on your agreement) and walking away from the negative equity

or

2. Investigate if a motor dealer (perhaps the original dealer?) can transfer the negative equity on to a new agreement for a cheaper car

54druids

so once you hand it back are you not liable for anything else? Think the agreement is a pcp does that make a difference? What about companies like handyourcarback.com - is it worth going via them? At the moment we should have only done 54k miles but we have done 77 so at 12p a mile we still need to find 2400 which we don't have

forgotmyname

I wouldnt use a site like that sounds like they will charge you a fee to help you. No point when you can get
free advice on here and speak to your finance company itself. For a fee they will tell you what youve already
been told.

If its a PCP that will make a big difference, You may be able to sell the PCP on?

54druids

sorry but can you elaborate?

forgotmyname

Send me £250 and i will tell you if the car is on HP and you have paid more than 50% of the deal you can hand it back.

Of course if its not HP or you have not paid at least 50% then you cannot hand it back.

PS. Thank you for the £250.

PS.. For a fee of £300 we can find you a buyer who will take the car off your hands.

Say you owe £5k on the car the buyer offers £3k so still leaves you £2k in debt for something
you no longer have.

So many tempting scams out there also.

Lots of people complain when selling a car in autotrader or similar they get calls from companies that have
"BUYERS" for their car and for a small fee they will pass your details onto them. Usually rubbish they dont
have anyone interested in your car. And you are ££ out of pocket.

They prey on people who need to sell.