Best way out of car loan

Nafta

Hi,
About 7 months ago I got a loan to buy a car. My husband suffered a stroke and he is entitled to motability scheme.
The problem is that I cannot afford to pay off the current car loan in full.
I have been given a settlement figure but I know no dealership will give me that for the car.
I have a poor credit history so it will be difficult to obtain an unsecure loan to pay off the car loan.
Anybody has any ideas on the best way to go about it?
All help much appreciated
Nafta

Apples2

Is it on a HP agreement or a Personal Loan?

shop-to-drop

Is the car you've got now unsuitable? If not why get another?

Nafta

It is a HP loan.
The reason for wanting to change is simply because of the savings.
Leasing or purchasing a car via the motability scheme means we can not only get a better car but also road tax and insurance, servicing and repairs are all included. I am a first time driver paying a fortune for insurance at the moment. With only one salary coming in and with a young familiy the motability scheme is just what we need.

jonesMUFCforever

shop-to-drop wrote: »

Is the car you've got now unsuitable? If not why get another?

If it is motability - we the taxpayers will pay for it not the owners.
It will also be adapted to the owner's specs.

If it is a personal loan perhaps sell the car and get the lender to re-arrange the o/s balance on a reduced monthly payment.

Gettingolder

It depends how long you are into the agreement, if you have paid more than half if the agreement you may be able to hand the keys back. You will need to read through the T&C's. Most agreements give you this option.

~Beanie~

Gettingolder wrote: »

It depends how long you are into the agreement, if you have paid more than half if the agreement you may be able to hand the keys back. You will need to read through the T&C's. Most agreements give you this option.

Only if the car was bought on HP. If it was a loan agreement then you can't do a voluntary termination.

forgotmyname

Use the motability payment to pay the loan until you can settle it fully?

jonesMUFCforever

forgotmyname wrote: »

Use the motability payment to pay the loan until you can settle it fully?

Do you know how the motability scheme works?

If you are on DLA they give you a choice get full benefit and you make your own vehicle/travel arrangements or they take a % off your DLA which goes towards the vehicle.

Therefore I do not see how OP can afford both.

YorkshireBoy

jonesMUFCforever wrote: »

Do you know how the motability scheme works?

If you are on DLA they give you a choice get full benefit and you make your own vehicle/travel arrangements or they take a % off your DLA which goes towards the vehicle.

Therefore I do not see how OP can afford both.

I think the poster was suggesting delaying taking up the motability car option, and using the DLA payments to service the loan in the interim.

However, with a wage lost, one would assume it would be difficult to service the loan repayments and cover the income shortfall with the DLA payment?

Nafta

Thank you all for your suggestions!!
I actually learned to drive and bought the car after my husband had the stroke as I knew life has changed and with extra responsibilities now for me and to be able to deal with all of them a car was a must. However we were not advise about any of this schemes or benefits. So I bought the car only 6 months ago on a HP loan and I have not paid half of the loan yet.
I thought about getting an unsecure loan to pay the car loan and then sell the car privately as as it stand the car finance are saying I can only sell to dealerships and those will offer me very little. I would have to pay off the difference right away and I don't have the money.
but I have poor credit so getting a loan will be difficult.
Don't get me wrong. The car we have is nice but a notability car would be better for my husband with the adaptations needed in place and to be brutally honest it would mean a saving of 300 a month which I really could do with. please do not judge.
I a a tax payer and my husband has been till now. We just want to do what is best for our family in this sad and life changing situation.
many thanks again!!