Need help with sticky finance situation

Kenshi

2 years ago I decided to upgrade my car and got a new one on finance this is when I was in full time employment.

Approximately 6 months ago I decided to go back to college to better myself in hopes of going self employed and kept some work on with my previous company to keep me going whilst I went back to college, this is now my only source of income (approximately £280 a month) as I was told that I am entitled to no other funding being a mature student and that all student loans etc were not an option to me.

6 months ago I also decided to change my original vehicle for a white van and had a few extra jobs lined up on the side for extra cash which all got messed up in October when someone decided to crash into the side of me in my van this resulted in no extra work being done for savings and a loss of a few weeks work due to a back injury that I received.

I am now in a predicament whereby after all necessary rents, taxes and insurances I have somewhere in the region of £120-£140 a month to spare towards the cost of a vehicle and the cost of my current vehicle is £220 a month a figure which I cannot afford so…

I go back to the car dealership where I bought the vehicle and explain to them the situation, in hope that they will be able to put me into something more affordable and rework me a new finance package, but this is not the case.

The simple facts they have told me regard a figure called negative equity, the way it works: I paid £9800 for the van a few moths back, there is still £9300 left to pay on the van yet if I were to give it back they will only give me £6000 for it leaving £3300 left to make up to the original £9800 this £3300 is what they call the negative equity and they say if they were to refinance me on another vehicle it would have to be 4x the negative equity value so 4x3300 = £13200! This will definitely work out at a cost more than £220 a month and put me in a worse situation this is the only option the garage has given me.

As far as I can see I have the following options:

1) Give them the van back and find £3300 from a loan of some kind leaving me with still a loan to pay and no vehicle.

2) Take a personal loan out to cover this £3300 give them the van back and purchase a smaller more affordable vehicle (if anyone loan wise will touch me with a decent APR that is.)

3) Tell them I cannot afford it and ultimately they will have to reposes the vehicle and I shall have to pay the negative equity back over a period of time and most probably seriously damage my credit file and risk going to court.

4) Have a word with my insurance company about an advanced payout from them although I have had my vehicle repaired and given back to me I have had nothing yet for personal losses or injury I am to go for a medical in February 2007 but I feel it could well be a few months still until this matter gets sorted out.



I make this post as I cannot see a positive way out of this situation and was wondering if anyone might be able to enlighten me to new information which may help me to solve this situation with a happy ending. There seriously is no other cut backs I can make I don’t drink or smoke or do any other money wasting activities so cutting back funds elsewhere is not possible. Any feedback or help would be most appreciated. :rolleyes:

kev84

Kenshi

we replied to your original post here

Kevin

Kenshi

:eek: Sorry folks i didnt realise that this message had been double posted i tried to post this originally last night before going to see my family and it told me that page could not be displayed etc etc and that my page had expired sorry for double posting