Car PCP

lexington013

It's looking likely that I will lose my job next week:(
Long story, I will probably get 1 months notice but that will be it.
I'm in a 4 year PCP car deal with 1 year already elapsed with a final balloon payment.
There is no way I will be able to continue the payments, my priority will be covering the mortgage (probably at interest only for a few months) till I can find something else.
As you can imagine I'm feeling pretty low (not about the car etc, it is just a car) but worrying that if I don't find something in 3/6 months I will have to sell my house. 11 years remaining on the term.
I will speak to the bank next week regarding the mortgage, to get some breathing space, but would welcome your advice or experience on how to handle the car finance company.
Thanks.

bigadaj

I'd wait until you receive formal notification and then speak to the car company straight away.

Explain that you won't be able to afford any more repayments, they'll probably repossess the car and try and charge you the balance. You then need to do a statement of affairs, ie list incomings and outgoings, if you won't have anything spare then they can try and enforce the debt against you but will only get a nominal payment awarded.

Post your statement of affairs on the debt free wannabe board of this site and helpful people will advise on what you can do to minimise expenditure.

Also speak to one of the free debt charities, stepchange or the money advice service. They can provide advice and also deal with your creditors which might help.