Can't afford car finance

K88e

Hello

I bought a nissan juke on finance 4 months ago through blackhorse. My full time employment contract unexpectedly ended last month and I now have a part time job. I'm worried that in a few months ill struggle to afford the payment of £190 a month so would like to sort something before I potentially get to that point. Is there a way I can swap the car for a much cheaper car without it affecting my credit as I have a good credit score? And would it be best to contact blackhorse finance or the garage where I purchased the car?

Many thanks

DUTR

K88e wrote: »

Hello

I bought a nissan juke on finance 4 months ago through blackhorse. My full time employment contract unexpectedly ended last month and I now have a part time job. I'm worried that in a few months ill struggle to afford the payment of £190 a month so would like to sort something before I potentially get to that point. Is there a way I can swap the car for a much cheaper car without it affecting my credit as I have a good credit score? And would it be best to contact blackhorse finance or the garage where I purchased the car?

Many thanks

Is there no chance of picking up another contract that may match or exceed what you were earning?

4743hudsonj

K88e wrote: »

Hello

I bought a nissan juke on finance 4 months ago through blackhorse. My full time employment contract unexpectedly ended last month and I now have a part time job. I'm worried that in a few months ill struggle to afford the payment of £190 a month so would like to sort something before I potentially get to that point. Is there a way I can swap the car for a much cheaper car without it affecting my credit as I have a good credit score? And would it be best to contact blackhorse finance or the garage where I purchased the car?

Many thanks

I sympathise with your position, it's good you are looking ahead like this.

Unfortunately as you probably realise your'e finance settlement figure will almost certainly be considerably higher than the value of the car. This means if you traded in the car, you would still owe money on it.

This will have the effect of lowering your payments without adverse effects to your credit score but its a hard pill to swallow paying monthly for years to come on a car you no longer own.

No matter the route you go down Blackhorse will need to be notified of what you are doing so you may aswell begin talking to them with your concerns. They have an obligation to talk to you about your options. One of these options may be to trade in and transfer finance to a much cheaper longer term agreement on a cheaper car.

Please double check your paperwork to check this is indeed a finance loan (ie you own the car) and not hire purchase (they own the car). The latter can greatly affect what happens next.

Good luck for the future, If you find you are struggling try giving Step Change a ring. They're a government funded charity and I have found they give excellent, non-judgmental advice in hard times. I suppose CAB and MA (Money Advice Service) can give similar advice but CAB can be very busy and I've never used MA. If things get really bad at least step change have the ability to help you and not just give advice.

londonTiger

another reminder for young people to buy a £1500-£2000 decent runabout and pay cash. But that's probably not what you want to hear right now.

Strider590

londonTiger wrote: »

another reminder for young people to buy a £1500-£2000 decent runabout and pay cash. But that's probably not what you want to hear right now.

It sounds like the same situation my former colleagues got into when redundancies started. 3 of them bought fancy new cars and all 3 were made redundant within 6 months of doing so.

londonTiger

Strider590 wrote: »

It sounds like the same situation my former colleagues got into when redundancies started. 3 of them bought fancy new cars and all 3 were made redundant within 6 months of doing so.

boss probably got annoyed that he has to drive a 20 year old volvo and decided to teach the kids a lesson. :O

thewhiteavenger

What form of finance is this? What does your agreement say?

DUTR

thewhiteavenger wrote: »

What form of finance is this? What does your agreement say?

In a sense does it matter, or is it a learning curve of facing the ups and downs in life? Is the loss of a job the real reason or buyers remorse?
The OP and anybody in a similar situation should learn to get over these obstacles, having the car will assist getting to future interviews .
ETA The OP could seek one of those local courier jobs that will help pay for the car.

Stoke

Strider590 wrote: »

It sounds like the same situation my former colleagues got into when redundancies started. 3 of them bought fancy new cars and all 3 were made redundant within 6 months of doing so.

This really. I get a fair bit of stick for driving around in an old banger on veg oil, but then I know for a fact the car is mine and I have nothing to worry about regarding finance or any of that lark.

I sympathise with you wholeheartedly. I've got friends who have gone through the same situation. Hopefully, you can pick up some work and afford the bills.

anotheruser

Sell the car to someone else, then the debt will pass to them.
HAHAHAHHAHAHAAAA!

NB: No.

rustyboy21

DUTR wrote: »

ETA The OP could seek one of those local courier jobs that will help pay for the car.

He will then have to get car insurance for use whilst on business purposes, which will cost him a lot more.


If not and he is stopped by the police, they will seize the car and get 6 points.


OP don't do the above !