reducing hp car finance payments only have 1 year.

delta4

I am with first response finance and want to reduce my payments for the car I only have 1 year left and about 1500 to ay out of 4999 including deposit, and ppi. Can anyone suggest a way to write a letter please? I do not want to give the car back when I got so far but going on maternity and my pay has been reduced greatly already.

thank you

Herzlos

You want to reduce the monthly payments?

Do they require written contact on can you contact them via phone?

There are a few options, all involving talking to them (I'd try and phone first), in order of preference:

1. Pay off a chunk of the outstanding balance and ask if they can reduce the payments.
2. Ask them if you can reduce the payments and increase the term.
3. Take out a loan to cover the outstanding balance and any early payment fees, at a more agreeable monthly payment rate, and then pay off the loan.

delta4

I have no choice to reduce payments. I am getting 550 month the finance and car insurance is about 300 I have expense car insurace. I am asking to reduce payments to 80 which will help me immensly. I hope they can do this?? if not I have to give car back.

Herzlos

Do you need the PPI? Will dropping that help?

How much is the car worth now? Could you get away with selling the car, clearing the debt and buying another car with what you've got left?

Have you spoken to them about reducing the payment?

motorguy

delta4 wrote: »

I have no choice to reduce payments. I am getting 550 month the finance and car insurance is about 300 I have expense car insurace. I am asking to reduce payments to 80 which will help me immensly. I hope they can do this?? if not I have to give car back.

They wont do it per se under the current agreement.

However, they may well let you refinance the amount over a longer timeframe, but bear in mind you'll end up paying more interest.

What about a bank loan for the amount over a longer timeframe?

Apply for an interest free credit card?

Any chance to borrow the money off a family member or a friend?

Oh, and ditch the PPI immediately - you'll not be claiming off it when you are on mat leave anyway.