Car loan - lost job

dazza12

Hi,

I purchased a car last December using Advantage Finance. I'm up to date on the payments, but lost my job at the beginning of this month. I was employed by my own Ltd company, which lost it's main client and as a result I had no choice but to make myself unemployed.

The next payment is due on the 26th of this month (next Wednesday). I'm aware that being in arrears can cause a problem in this situation so I need to decide fairly quickly if I need to arrange to hand the car back or to keep it and try to work through the problem.

I'm an IT Contractor. It's possible that I may be back in work very shortly, but a former colleague in the same field as me has been out of work for nearly a year. I'm hopeful that I can get some work soon but I need to be prepared for any long term issues. Although there is an image that people in IT are high earning, the realism is that I was earning only just enough to support my family so I didn't get a chance to put any money away.

If the car has to be handed back or gets repossessed, my brother has kindly agreed to lend me his car until I can afford a 2nd hand one. So transport won't be an issue for the next few months.

I'm aware that I can't VT the vehicle as it's not at the halfway point. However, looking at the figures, the VT figure is £5436, the one third figure is £3624. I've paid £436 plus 8 payments of £286.49 so £2727 has been paid.

What would be my best course of action in the circumstances? Should I tell them to just pick the car up and work out an arrangement to pay whatever the remaining figure is, or would it be better to speak to them about possibly arranging to pay the missed monthly payment over the next 2-3 months? What I don't want to do is find myself in arrears and then try to negotiate - I understand the fact I'm up to date at the moment may work in my favour.

To add to the mix - as my company has effectively ceased trading it's likely it will be compulsorily liquidated. As a result as I have an overdrawn Director's Loan that I will be liable for it's possible I may be made bankrupt or forced into an IVA - if Advantage Finance do start to get nasty I can just let it happen rather than spend years paying for a car I don't have (the original plan was to negotiate with the Official Receiver).

chanz4

It industry is very cut throat, too many people in it so know how that feels. Can you not take a none IT job?

serverking

Are you Security Cleared IT? You could try ECS Coventry, their number is 0330 0210 213, Shane Marriott might have something for you... The rate won't be fantastic but if it is long term that can help.

Depending on where you live in the country, IT work can be hard to come by.

If no luck, try JobServe, (and park the car at a mate's house):p

You could always ask your Finance firm for a Payment Plan, surely you have a little savings to make the payment this month? Can't someone lend you something for Tuesday?:(

chalkie99

Should I tell them to just pick the car up

No!.

You must discuss it with them first and come to an agreement which you should ask them to put in writing.

If you try and shrug your responsibilities by telling them to sort it you will only end up with all sorts of extra charges which will drag you down further.

dazza12

chanz4 wrote: »

It industry is very cut throat, too many people in it so know how that feels. Can you not take a none IT job?

I haven't ruled it out, but the last time that I took a non-IT job it did so much damage to my CV that it took 5 years to establish myself again.

That said, non-IT jobs around my area are also few and far between. We've just had two large employers in the area announce redundancies so the market for non-IT jobs is quite sparse at the moment. I'm willing to travel up to 50 miles from home so that puts me in some of the larger centres around me (Bristol, Exeter, Bournemouth etc).

Whilst writing I rang Advantage. They're willing to accept £86 and will hold the account whilst I'm out of work. I've just got to sort out some paperwork to fax to them including the letter I need to write to myself letting me go (confusing, but I was the sole director of the company employing me).

I'm guessing the best course of action at this stage is to hope this period of not working doesn't take too long - I've applied for literally hundreds of jobs and emailed my CV to a few hundred agencies and employers so I'm hoping I'm not in the situation for too long. If it does, ongoing arrears with Advantage will be the least of my problems.

dazza12

serverking wrote: »

Are you Security Cleared IT? You could try ECS Coventry, their number is 0330 0210 213, Shane Marriott might have something for you... The rate won't be fantastic but if it is long term that can help.

Depending on where you live in the country, IT work can be hard to come by.

If no luck, try JobServe, (and park the car at a mate's house):p

You could always ask your Finance firm for a Payment Plan, surely you have a little savings to make the payment this month? Can't someone lend you something for Tuesday?:(

Thanks Serverking.

Just went to call ECS and the number came up on my phone as being in my call list. Turns out it was one of the first jobs I applied for - a contract for an immediate start in my area. They were keen to put me forward and so was the client. I was apparently the only candidate. Still call Shane/Dan on a weekly basis and they still haven't had a yes (or a no!) from the client. However I'll ring him again this morning to see if there's any more news.

Not too bothered about the rate or even if it's long term - even a week's worth of work is good at this stage and it would be at least twice what I'd get sat at home. Even if it's 1st/2nd line support. Normally qualified to 3rd line support and server / infrastructure work so that's my aim long term.

randygabriyal

I am totally agree with serverking.

t508

Ring Advantage Finance and ask them if they have any IT jobs going? but seriously you did the right thing by speaking to them first, keep a level head and address any issues with them asap. they only want there money and will take the best option that they see and that will normally be a reduced payment than forced repossession etc.