car finance help

mum2many

we seem to be stuck in a horrid situation with no way out (that I can see)

my husband drive a big car SSangyong Rodius, we took finance out (HP?) on this when he was working for a company that paid towards it instead of taking one of their company cars. we chose it as it fit the 4 kids in, towed the van and he only worked 15 miles away round trip per day. However 6 months into this loan the company made my husband redundant :-(

After negotiating with the finance company we were able to reduce the payments after the redunancy cover taken out ended. All good so far.

Now my husband is back in work but travelling almost 400 miles per week to work and back and the fuel is costing £100 ish per week. we need a smaller, more economical car for my husband and i'd have the Rodius as i do around 400 miles per month.

The trouble is my car is worth £50 ish and on its last legs, we have no savings as they got eaten up when my husband was out of work and we have bad credit due to not being able to pay the mortgage (very unhelpful BS)

What we would save by me having the big car would cover the car finance on a new car and leave us with more money to pay of the arrears on the mortgage.

my husband has been back in work since Nov'10 and earns approx £23000 per year, I earn approx £10000.

Any advice?

BugsyBrowne

mum2many wrote: »

we seem to be stuck in a horrid situation with no way out (that I can see)

my husband drive a big car SSangyong Rodius, we took finance out (HP?) on this when he was working for a company that paid towards it instead of taking one of their company cars. we chose it as it fit the 4 kids in, towed the van and he only worked 15 miles away round trip per day. However 6 months into this loan the company made my husband redundant :-(

After negotiating with the finance company we were able to reduce the payments after the redunancy cover taken out ended. All good so far.

Now my husband is back in work but travelling almost 400 miles per week to work and back and the fuel is costing £100 ish per week. we need a smaller, more economical car for my husband and i'd have the Rodius as i do around 400 miles per month.

The trouble is my car is worth £50 ish and on its last legs, we have no savings as they got eaten up when my husband was out of work and we have bad credit due to not being able to pay the mortgage (very unhelpful BS)

What we would save by me having the big car would cover the car finance on a new car and leave us with more money to pay of the arrears on the mortgage.

my husband has been back in work since Nov'10 and earns approx £23000 per year, I earn approx £10000.

Any advice?

Yeah understand that but what is your question?

mum2many

star-fire wrote: »

Yeah understand that but what is your question?

Is there any way of gaining finance to purchase a smaller car, thats the advice i was after, sorry if that wasnt clear but wanted to give full history,
have seen companys that say that they finance your current situation not your past but are they a bad option?

BugsyBrowne

mum2many wrote: »

Is there any way of gaining finance to purchase a smaller car, thats the advice i was after, sorry if that wasnt clear but wanted to give full history,
have seen companys that say that they finance your current situation not your past but are they a bad option?

You need to tell us more,do you require HP on the smaller car or a personal loan.
What are your current debts,credit cards,loans,balances,missed/late payments.

Personally by the sounds of it I would try and save as much as you can then you could get yourself a nice motor with months,and there are some great cheap reliable motors out there.

CLAPTON

have you checked your credit files ?

what's the SSangyong Rodius worth if you sell it?

Poosmate

What kind of car do you have? Although you say it's only worth £50 I think you'll find it's probably worth double that in scrap value. I would say save up for another car for yourself and use the scrap value of your car towards it too.

How many payments are left on the Rodius? Can you weather the storm and sell the Rodius when the finance is finished on it? Then sell both cars and downsize to an older, smaller, big car and an older, smaller, small car, afterall both cars don't need to get all 6 of you in.

I'm not sure you'd get finance for a second car in your current situation and if you did I'm almost certain it would be at extortionate interest rates. These finance companies do like to kick people when they're down!

Your main priorities right now are to keep the roof over your heads and mobile so you can work, everything needs to be cut back to the bare minimum (which I guess you've already done whilst hubby was out of work).

I hope you can work it out in a way that's good for you.

Good luck,

Poo

Keeley_P

The first thing I's do is confirm what type of finance agreement you have on the Rodius. If its HP, check if you've paid over half and then you can consider a Voluntary Termnination - you wouldn't get any cash for the car but you also wouldn't have to continue the payments. If it was a loan for the car, you coud look at selling it, but you woud still be liable for the outstanding balance on the agreement.

You probably could get finance from someone for another car, but it would be at a horrendous rate of interest, as Poosmate says, investigate the scrap value of your car and look at getting a cheap runaround, my car cost £300 and 3 years later is still going strong!

Good luck!

Keeley

sp1987

What car do you have? I guess it depends why it is on its last legs as to whether it could be improved more cheaply than the finance payments to allow for use by your husband.

You say 'towed the van'. Is that a caravan you could sell to free up some funds that might pay for a good condition older car for husband to drive to work if yours won't make it? You seem to be in a it of a pickle from a few directions at the moment and need to avoid extra outgoings unless you can fund them from selling other things (any old toys or books to ebay?).

mum2many

ok :-) the rodius is worth around £6500 but we owe about £9000, its HP but we extended the terms when out of work so nowhere near the half way mark.

mine is an N reg mondeo, done 100k miles, has an exhaust leak and i think its worth less than the repair costs

We both need cars, i'm a community care assistant for the NHS and hubby has to drive to manchester daily, not near the centre though so train not an option :-(

any money we have goes on food and fuel so have no money to save, maybe £10 a week is possible.

On paper we could manange new finance as we can pay for the fuel but as that keeps going up we wont be able to as we need to eat :-(

the caravan is old, but has no finance on it, but is only worth around £500 and is the only holiday the kids get to go on (i know we could miss this but dont want the kids to miss out as they love it)

any more advice would be great

mum2many

star-fire wrote: »

You need to tell us more,do you require HP on the smaller car or a personal loan.
What are your current debts,credit cards,loans,balances,missed/late payments.

Personally by the sounds of it I would try and save as much as you can then you could get yourself a nice motor with months,and there are some great cheap reliable motors out there.

HP or Loan, i really dont know :-(
we owe around £2500 on the mortgage which we pay off £50 a month on top of the £1050 mortgage payment( went for fixed then the interest dropped :-( )
all other payments are up to date although they may have been late

PNPSUKNET

I dont think a further hp will be an option, mortgage arrears etc will be reported and so finance companys will see you as too streched. Try the car accounts for a repo car