Negative Equity on car finance

Thecheese

OK, please bear with me. This is my first post and I have lots of questions!!! I currently have a stupendously thirsty 3litre V6 St220 Mondeo which not only needs four new tyres (approx £500), a service (engine management light has been on for a week) but also is costing me approximately £85 a week in petrol.

Now before I am shot down for having such a ridiculous car in the current climate, whne it was first purchased (financed) I was on a generous basic with a 5k a year car allowance, since then redundancy happened and this has been a minor issue amongst many other things including saving the house from repossesion.

First and foremost the finance company is Welcome (!) and paying off the outstanding would be about 6k, which is equal to the value of the car (once serviced etc), unfortunately I do not have this amount of money available. Handing the car back would cost nearer 11.5k according to Welcome, which again I cannot afford, even though it has been suggested to do this and then not meet the payments and try to get away with a token amount monthly.

I have a very poor credit rating anyway, hence using Welcome to finance the purchase so cannot part ex the Mondeo against something even more expensive and place the new higher finance somewhere else but on a noticeably cheaper to run vehicle. Does anyone have any suggestions please?

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colino

Firstly, not being funny, but stop wellying the car everywhere. Just because its got a bit of performance on tap, doesn't mean you have to use it all the time! The Mondy can be surprisingly frugal if you drive it like you owned it. Blackcircles et al will get you a better idea of how much budget tyres will cost you, likewise get it serviced by your local, friendly independent. Not only cheaper, but might help you out with the tyres too.
How long have you had the car on finance, not near the magical 50% and hand back yet?
Best of luck.

Thecheese

colino wrote: »

Firstly, not being funny, but stop wellying the car everywhere. Just because its got a bit of performance on tap, doesn't mean you have to use it all the time! The Mondy can be surprisingly frugal if you drive it like you owned it. Blackcircles et al will get you a better idea of how much budget tyres will cost you, likewise get it serviced by your local, friendly independent. Not only cheaper, but might help you out with the tyres too.
How long have you had the car on finance, not near the magical 50% and hand back yet?
Best of luck.

Thanks Colino, with regards wellying the car, it is rare that I drive aggressively. My job when I purchased the car involved lots of A road and motorway driving and I was achieving close to 40mpg. I am now doing lots of stop/start motoring throughout South London and its nearer 20mpg! I also had a really poor experience with budget tyres not a year or so ago, getting only six months use before a bulb formed on one of them. After that I purchased part-worns and that is why I now require new ones. The phrase 'get what you pay for' seems totally relevant with tyres and a car with this size engine. Servicing I can source locally, agreed. Please could you ellaborate on your 'magical 50%' finance comment, as this is my main issue and one that I am not very clued up on.

harveybobbles

Put pressure tested part worns on for £35 a corner...

Get an oil and filter change done at National Tyres for £30... http://www.national.co.uk/oil-vehicle-search.aspx

Get the light read and reset (probably be 02 senser)

Enjoy the ST220...!

Flyboy152

Thecheese wrote: »

OK, please bear with me. This is my first post and I have lots of questions!!! I currently have a stupendously thirsty 3litre V6 St220 Mondeo which not only needs four new tyres (approx £500), a service (engine management light has been on for a week) but also is costing me approximately £85 a week in petrol. Now before I am shot down for having such a ridiculous car in the current climate, whne it was first purchased (financed) I was on a generous basic with a 5k a year car allowance, since then redundancy happened and this has been a minor issue amongst many other things including saving the house from repossesion. First and foremost the finance company is Welcome (!) and paying off the outstanding would be about 6k, which is equal to the value of the car (once serviced etc), unfortunately I do not have this amount of money available. Handing the car back would cost nearer 11.5k according to Welcome, which again I cannot afford, even though it has been suggested to do this and then not meet the payments and try to get away with a token amount monthly. I have a very poor credit rating anyway, hence using Welcome to finance the purchase so cannot part ex the Mondeo against something even more expensive and place the new higher finance somewhere else but on a noticeably cheaper to run vehicle. Does anyone have any suggestions please?

These two statements don't make sense, can you explain a little clearer?

Kilty_2

How long have you owned the car and how long is the agreement?

If it is Hire Purchase secured on the car (and not a loan) then it is possible that you are entitled to hand the car back without penalty if you've paid half of it.

(this is the 50% thing described above)

Thecheese

Flyboy152 wrote: »

These two statements don't make sense, can you explain a little clearer?

I'm not sure i can. I am going to get the paperwork out tonight so that i may provide the facts more clearly. However, when asking for a a settlement figure, 6k was what Welcome quoted. When I then asked about giving the car back they said I would have to pay nearer 11.5k???

Thecheese

Thecheese wrote: »

I'm not sure i can. I am going to get the paperwork out tonight so that i may provide the facts more clearly. However, when asking for a a settlement figure, 6k was what Welcome quoted. When I then asked about giving the car back they said I would have to pay nearer 11.5k???

Ok, I have spoken with welcome this morning and they are quoting £6783.48 as a settlement figure. On requesting a VT the lady said that there would be a substantial liability and that it would take a couple of days but she would request a liability figure and call me back.

Anything I need to do...?

Flyboy152

Thecheese wrote: »

Ok, I have spoken with welcome this morning and they are quoting £6783.48 as a settlement figure. On requesting a VT the lady said that there would be a substantial liability and that it would take a couple of days but she would request a liability figure and call me back.

Anything I need to do...?

Excuse my slow brain today, but what's a "VT?"

Thecheese

Flyboy152 wrote: »

Excuse my slow brain today, but what's a "VT?"

Voluntary termination. (I only learnt that from on here on Friday!):D

wba31

Is that settlement figure you're being quoted to simply pay up the HP and own the car outright?

you can hand the car back once 50% of payment has been made - check out this factsheet...

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

convert it into a PDF (right side of the page) and it is easier to read...