Car finance query???

babydoo10

Hi all,

Back in Oct 2009 my (now ex) partner took out car finance in his name on a new Seat Ibiza. The finance was put in his name as I was only working part time, although I put down £2,000 deposit. It was agreed that I would pay for the upkeep of it if he paid the finance.

The car was (and still is) registered in my name. We were running another car whilst together but that ended up in the knack3rs yard and we couldn't afford another so we shared the Ibiza.

We split up in March 2010 and for a few months he continued paying the finance and we still shared the car as much as possible (an amicable split obviously lol!) However, he made a huge c0ck up at work and was sacked in January this year, leaving the finance payments up in the air as it were.

I managed to scrape together enough every month to pay them instead, but have just had my hours reduced at work and will no longer be able to afford them - at least not in full.

We no longer share the car and I am responsible for its upkeep (payments, tax, insurance etc) as part of our 'split up deal'.

Over a third of the total amount borrowed has now been paid so I know they can't repo without a court order, which will buy me some time to sort this out. (The finance agreement ends Oct 2012 with about £5K balance IIRC).

The ex is up to his eyes in debt anyway due to unemployment and doesn't care what happens with the finance (i.e - his credit file is right up the swanny so he says that adding the £6K ish owed to his arrears won't make much difference to the over £30K he owes to others)

Don't get me wrong, I'm not trying to avoid paying, but finding £203 a month when you will now only be earning £408 a month is kinda tough when you got a mortgage, bills etc too!

If the finance was in MY name then of course I would contact Seat and sort something but as it's not and as the ex isn't interested I'm stuck as to what to do. I don't want to just hand the car back as I have paid for it (more than the ex did FYI)

I could try to get a loan in my own name (my credit file is good) to get the lender paid off and then the car will be legally mine, but should things go even more awry then it'll affect my file, whereas stopping paying this won't. TBH I can't really afford to do this anyway.

I guess the question is this - Does every lender go through with a repo court order following default or do some just go straight to the 'borrower to try to get money owed back'? If that makes sense? I just feel a bit 'grrrrr' that I have paid more than he has (inc always paying the insurance, tax, servicing etc) and to come out of it with nothing would be a right p1ss3r.

I need the car for work and the school run (not on a bus route and too expensive for cabs) plus I can't afford to buy an old banger either.

Any tips, advice welcome - please be nice though as this finance lark is all new to me, apologies if my question is out of order or anything!!!

DCFC79

Your question isnt out of order, have you looked at your outgoings to see if you can cut back on anything ? Are you looking for a job with more hours or do you want to get xmas out of the way then look for a job after xmas ?

Sorry to hear about you splitting up.

RichGold

babydoo10 wrote: »

I could try to get a loan in my own name (my credit file is good) to get the lender paid off

Could you afford the repayments?

chesky369

Was it HP or personal loan?

tell_it_how_it_is

If there's only 11 months left at £200 or so a month, then isn't there only £2200 or thereabouts to pay?

If so, maybe it is worth you trying to source a £2.5k loan over a 2 or 3 year period, so you have a lot less to pay each month, albeit over longer. Then pay his loan off directly for him, and keep your car.

babydoo10

Thanks for the replies so far which I'll answer in order:

DCFC79 - I've cut back on as much as poss - don't smoke anyway, hardly drink or go out! (Such an exciting life lol!), cancelled the Virgin TV, gone on PAYG mobile as hardly use it etc so don't have any unnecessary extras at the mo. I have looked for more hours/diff job but nothing doing at all around here (got to fit in with school hours/weekends too, so that limits the jobs a bit)

RichGold - TBH, probably not - at least not at present (so probably a waste of time me even putting that comment about getting a loan lol! Having a desperate 'trying to find a solution moment' I think!)

Chesky369 - It's HP with VW/Seat finance

tell it how it is - The finance was for 3 years but the car cost £12K. The 3 years payments came to (approx) 7K (not forgetting good ol' interest!) so after 3 years there is still a lump sum outstanding

Thanks again - any more help welcome

chesky369

If it's HP then the car is still owned by the finance company and they will eventually repossess it if there's a default. They will then sell it at a knockdown price and your partner and/or you will still owe the balance.

tell_it_how_it_is

Ah, was hoping not HP, must be a snazzy Ibiza!

Seems pretty tricky tbh, but would be a shame to lose the car altogether at this point.

Some thoughts off the top of my head, starting with are you claiming all the benefits you are entitled to?

Do you have a friend or close family member you could perhaps borrow a grand off to ease the burden for the next year? Still means you'd need a loan to pay them back, and the excess, but gives you critical time.

Finally, do you have a partner who can or will help out? And if not, maybe something to consider getting for Christmas. Preferably a well off one!

babydoo10

Lol, dunno about snazzy Ibiza (spesh not if you saw it at the mo - desperately needs a good wash, vac and valet! ) but yeah it was a special edition and was on good ol HP

I am claiming all I'm entitled to thanks (although not a lot - would be better off on the dole if it wasn't for the mortgage...) I get a few quid child and working tax credits but most of it gets swallowed up by school dinners at £10 a week and the usual bills/petrol/uniform/trips/after school clubs etc.

There are no friends or family who have that kind of money spare - we are all in the same boat tbh. I do have about £1,000 in my daughters savings account from money she has amassed over the years for birthdays etc but I really don't feel right about borrowing it as I don't know when/if I can afford to replace it. She is only 10 so doesn't really 'need' it until she leaves school but my own mum 'borrowed' my savings when I was about the same age (it was only £100 but it was the 1980's lol!) and I never saw it again so it kinda seems hypocritical to do the same.

I do have a new partner but they aren't on a brilliant wage either and have enough outgoings of their own to pay and haven't got enough spare to lend. Plus it's a fairly new relationship so borrowing huge amounts of cash is a bit of a no-no just yet lol!

Bugg3r bugg3r bugg3r!!! ;D

tell_it_how_it_is

Well, if it was me, I probably would use the daughter's money, but tell her and/or someone else (maybe someone who has contributed) about it to ensure it's in the open and doesn't make you feel like you are sneakily helping yourself to it and in danger of being "found out" as it were.

Also perhaps tell your daughter you'll get her a nice present as a thank you when it's paid back, which with the way you come across I'm sure you will do.

£100 from that a month through to next October will help get the monthly payments issue out of the way, and hopefully by then your relationship will be blossoming enough that you can attack the final payment and return of your daughter's money together with your partner.

Methinks its either something like that or you lose the car. All the best.

babydoo10

Thanks very much to you all for your replies - it seems there are only 2 options sadly - either throw in the towel or borrow from my daughter...

Will have to have a serious think about this and see what my conscience comes up with!

Well, my first experience of car finance (having always had older cars and paying for them upfront) certainly isn't positive! I suppose I have to be thankful that it isn't in my name, so at least my credit file stays ok!

Thanks again x