Help needed please - car finance problem

Jancie1

Hello,
Am a forum newbie and am hoping someone can advise me with my problem.
My stepson is 18 months into a 3yr finance deal on a new car. He now finds himself unable to make the repayments and needs to find a workable option to allow him to reduce the payments or to get rid of the car.
Any advice gratefully received.
Thanks,
Janice

motorguy

Jancie1 wrote: »

Hello,
Am a forum newbie and am hoping someone can advise me with my problem.
My stepson is 18 months into a 3yr finance deal on a new car. He now finds himself unable to make the repayments and needs to find a workable option to allow him to reduce the payments or to get rid of the car.
Any advice gratefully received.
Thanks,
Janice

Hi,

Check the paperwork for the finance agreement. If its a regular 'hire purchase' agreement, then there should be a 'termination - your rights' section on it. After you've paid 50% of the 'total cost' (ie, NOT 50% of the payments) you can usually hand the car back at no penalty.

Hintza

He will need to talk to the finance company (but read the T&C's to see what the penalties for eary termination are) but they will not be a cheap fix.

Unless......

He might have the option for a voluntary termination if he has paid 50% or over e amt wdut that depends on the tye of contract

He would be better trying to find another source of income and keep up with payments or some family help?

Hintza

pgilc1 wrote: »

....you can usually hand the car back at no penalty.

Subject to no dings and mileage within limits.

Jancie1

Thanks chaps,
We think it's a PCH agreement but he's at work at the mo and can't check till tonight. His 3 yrs is up next Oct.