The young can be very foolish

mule2000

A foolish young man is lucky he has a job. He took out a credit agreement to finance a car(he is 21). He was doing well, though the car was a gas guzler. He was paying his loan Then he took out a second agreement to buy another car for work, cheaper to run on fuel etc. How a finance company allowed this I do not know. Now he has had to take a 3k pay cut and cannot afford to pay for both cars he wants to hand them back to the finance company, he is convinced that if they take the cars back he can start afresh without credit agreements and being labeled a bad risk for the future. He feels trapped and has taken some dodgy advice.. but before he gets himself deeper into this situation can anybody give me a clue what to do to help him ?

MonkeyMad

Not sure what you are asking for. He has two assets which he can sell to pay back part of the loans. He may then be able to reduce his payments. I don't see how he would be able to hands the cars back without it being noted on his credit file. The loan co are not interested in who owns the car and will not be satisfied by getting it back; they want the money and will record if they don't get it back?

What is this dodgy advice of which you speak?

Apples2

Bet he feels an a$$.

By Poor advice, do you mean asking a man who sells cars for a living if he will sell you a car?

What does it say on the contracts about termination?

mule2000

He simply wants to walk away from the cars by handing them back to the finance company. He has friends who have done this in the past and although they have poor credit rating they now do not have a huge debt round their necks. He has only received 1 credit agreement it was taken out in Sept 2011 and he has paid every month till now. The second credit agreement has not yet arrived (less than 1 month). The same company have agreed to finance both cars.. The company is called Carlyle finance. As far as I can tell the agreements are bog standard for car dealers.

mule2000

Apples2 wrote: »

Bet he feels an a$$.

By Poor advice, do you mean asking a man who sells cars for a living if he will sell you a car?

What does it say on the contracts about termination?

Yes I guess he feels a right plonker. The very young do not always appreciate the consequences of their actions.

DCFC79

First mistake was buying a gas guzzler and second mistake was getting a second car for work due to car No 1 being a gas guzzler.

Shouldn't have taken his wage for granted in current climate.

Bravehearted_2

mule2000 wrote: »

A foolish young man is lucky he has a job. He took out a credit agreement to finance a car(he is 21). He was doing well, though the car was a gas guzler. He was paying his loan Then he took out a second agreement to buy another car for work, cheaper to run on fuel etc. How a finance company allowed this I do not know. Now he has had to take a 3k pay cut and cannot afford to pay for both cars he wants to hand them back to the finance company, he is convinced that if they take the cars back he can start afresh without credit agreements and being labeled a bad risk for the future. He feels trapped and has taken some dodgy advice.. but before he gets himself deeper into this situation can anybody give me a clue what to do to help him ?

What, so financially sensible people shouldn't be allowed to take two agreements depending on the circumstance?

How about tell him to take some accountability for his actions as opposed to trying to blame the finance company for giving him what HE asked for?

He is bad risk for credit and will be defaulted for breaking the credit agreement if handed back.

mule2000

DCFC79 thank you for this rather obvious point.

mule2000

Bravehearted I am so sorry that after stating your points many many times previously to him I am more interested in helping him than repeatedly bashing him over the head with the TAKE RESPONSIBILTY STICK yet again.
I am asking for helpful advice.
Now I feel that was my mistake here.

torbrex

Assuming that he still has the original job albeit at a reduced salary, he should sell the 'gas guzzler' and use the money to pay off one of the loans and as he will still need a car to get to his job he should keep the other car and pay off the loan as he originally intended.

As has been pointed out, the cars are of no interest to the finance company, they have done nothing wrong and are in no way to blame for the situation.
It should be put down to bad luck about the cut in wages and every effort made to repay as much as possible with the proceeds from the sale of one of the cars.

DCFC79

mule2000 wrote: »

I am asking for helpful advice.
Now I feel that was my mistake here.

Has he called the finance companies or just the 1 and explained the situation ?

I take it the plan is to give the gas guzzler back and keep the other car ?