where do i stand with my car repayments?

mety

Hi there
Sorry if this is not the place to put this. I have a car with Honda Finance. I currently owe 9K on it and it's worth is about 7k or just under with under 4 years to go on the agreement.

I got made redundant in March and want rid of the car altogether - how would I go about this and what happens when I hand over the car? Would they simply make me pay back the difference straight away or over a period of time?

Thanks for any help.

needtosavecash

hi im currently in a simmerler situation! i have a renault on finance wityh black horse ...car is worth about 5k.. the finance conciderbly more

now a change in circamstance means im the same as you want rid of the car asap! but have nothing really saved up to be paying off a lump sum to end the agreement but could manage a monthly agreement with them

il watch this thread for replys to save making a new thread on pretty much exacly the same subject?

if thats ok with the OP

cheers

Apples2

Without either of you posting the deatils of the Finance, it is impossible for anyone to give you advice.

What sort of finance is it? HP, Personal Loan?

When did ou take it out,
When is it due to finish,
How many payments have you made,
Have you missed any payments
What does your agreement say about early termination

Whatever the circumstances, it is extremely unlikely you would be able to simply give it back at the end and avoid the balloon payment. They would expect you to buy another car.

This is WHY they have balloon payments, in the hope the punter doesn't bother putting a few quid aside each month over the 5yr term to prepare for it, thus locking him into another unaffordable deal.

needtosavecash

sorry i forgot all the main key facts like that,il make my own thread as its not fair on me cluttering up the OPs

mety

What sort of finance is it? HP, Personal Loan? HP i think?

When did ou take it out - just under a year ago
When is it due to finish, - 4 year deal so just over 3 years
How many payments have you made - as above, one a month
Have you missed any payments - never
What does your agreement say about early termination - i don't know, should find the agreement and read it

if there's a difference of 2K between what I owe and what it's worth woudl they just make me pay that in full or do you think it's possible to organise a pay off agreement over a period of time?

Or do they take a % of that 2k as a fee?

nomoneytoday

Are you at the half way point on the finance yet?
If yes, and it's secured on the car, then suggest you look up a voluntary termination (not a voluntary surrender)

paulmcerlean

nomoneytoday wrote: »

Are you at the half way point on the finance yet?
If yes, and it's secured on the car, then suggest you look up a voluntary termination (not a voluntary surrender)

Did you just post without reading the previous posts?!

blacksta

I am always depressed when i read stories like this . I think the government should pass law that state people should buy car only with cash - thus saving themselves from the future miseries

KingElvis

blacksta wrote: »

I am always depressed when i read stories like this . I think the government should pass law that state people should buy car only with cash - thus saving themselves from the future miseries

How would the motor industry sell their shiny new trinkets without being able to give people money for something they don't need and can't afford?

RichGold

People will always aspire to own things they perceive as being desirable, not always things that they need but things that they want; big flat screen tv's, shiny cars, liposuction, big houses, the complete box set of all the Rocky films... While ever people want (not need) things that they don't have the cash for, firms will be there to finance those things for them and make a profit. End of.