Car Finance & Credit Score..

CarlosRoberto

Hi, I'm new here so sorry if this is in the wrong section...

A few year back i got my no ex-girlfriend a car on finance in my name and she was making the payments however when we split she gave me the car back and i decided to take over and pay for the car and use it but due to being on a zero hour contract at work my wage varies from week to week so some months i'm really struggling to pay my bills (Finance, Insurance, Gym and Debt management company)
I've managed to reduce my debt management down payments down but this still isn't helping me so I've decided that I'm going to hand the car back to the finance company.

The only problem being I need a car to get too and from work due to the the hours i work and the distance i have to travel.

My question is after I hand my car back and it's all been sorted in terms of if i have to pay them any extra etc... how long will it be before my credit score improves (Albeit slightly).
When we got the car originally it the forecourt price was around £6500 so with interest came to near enough £10000

I'm planning on handing the car back and then going getting another car on finance but for alot less and less monthly payments. I don't have the money to buy a car outright thats going to be reliable so finance really is my only option at the moment.

Sorry if this sounds confusing.
And help/advice would be welcome.

~Beanie~

You can only voluntarily terminate the agreement if the car is on a hire purchase agreement and you have made more than half the payments. Depends on the condition of the car when you hand it back whether they will ask you to pay any extra or not.

If you bought the car using a personal loan agreement, you can't hand it back.

It also depends what else is on your credit file as to hw quickly it wil start to improve. Do you owe anyone else? Any defaults or late payments?

Are you on a debt management plan? If so, you won't be able to get further finance to buy anything.

Are you on a debt management plan?

CarlosRoberto

It is on hire purchase, I think I've paid more than half if not it'll only be a few months more that i have to pay which i could possibly squeeze out...having said that seeing with you saying i won't get finance being on a debt management plan looks like i'll have to do a lot more squeezing and struggle on through till money sorts its self out again.

Thanks for the reply.

forgotmyname

Whats the car worth now? £2000 or £3000?

What sort of car are you looking to buy? Cheaper than that?

If your on a debt plan i cant see any cheap option to borrow. The interest rate maybe way more than your paying now.

Unless the cars very costly to run and your going to buy a cheap runaround you maybe better off sticking with it.

If you pop some figures up others will offer advice on what options you have. Mind you £10,000 for a £6500 car is fairly high interest anyway.. 20% ?

The car maybe worth a lot less than you owe on it. So getting rid maybe a good plan.

Buy a cheap banger if you need a car.