Can't afford car finance

rustyboy21

DUTR wrote: »

Have you ever included business use on your vehicle? Not only did it not cost much more, it didn't cost anymore! However it depends on the business class of course , and the local courier thing I'm on about is delivering a few parcels in your local area, perhaps the car is not even needed to do that.
However I'm looking at the OP's situation from a mature perspective, an option is for getting rid of the car, however from my eyes that is the losers choice, when we get hurdles in life we find a way to rise above it and surpass, not run away at every opportunity. Be posditive and positive things will follow.

Totally agree with what your saying there, Just wanted to inform the OP not to try and do that, until he ensured he had the correct insurance in place. The cost of seizure and getting it back, could be just enough to tip him over the edge.


OP, you might be better talking to the loan co asap, and discuss what has happened. You might be able to get a longer term loan which will cut the payments, or a repayment plan organised with them. They wont want to take the car back, as they will lose 1000's through depreciation.


The dealer wont be bothered, they have already been paid by the loan co

teabelly

I'd look for ways to make sure you can make the payments. An old banger is all very well but they break down and generally cost you more in tax, fuel and repairs.

I'd find another source of money to pay for the car, evening work, ebay some junk you don't need. Reduce your outgoings in other areas as soon as you can so you have more of a buffer between now and the time you think you may be squeezed. The more you do now the better off you'll be. The part time job situation may not last so it seems daft to ditch a car you've just bought when the situation you are worried about may not even happen. For all you know you could get another full time job that is better paid than the original one.

If you can negotiate the finance to be over a longer term then that's another option. Also check the mileage will be enough as you do not want to go over the mileage allowance set if you get another job eg the courier work.

AdrianC

teabelly wrote: »

I'd look for ways to make sure you can make the payments. An old banger is all very well but they break down and generally cost you more in tax, fuel and repairs.

If you view "repairs" as maintenance, massively reducing the chances of feeling the effects of poor maintenance, and include depreciation and finance charges, a new car becomes a very expensive luxury indeed.

teabelly

AdrianC wrote: »

If you view "repairs" as maintenance, massively reducing the chances of feeling the effects of poor maintenance, and include depreciation and finance charges, a new car becomes a very expensive luxury indeed.

No I don't. Both need to be serviced and maintained but the new car will be under warranty so the repair costs will be less/non existent and maintenance costs will generally be small service items and nothing substantial as the new car won't have covered the mileage to need major service items/repairs for several years.

Herzlos

At the risk of going off topic, but having only ever driven older cars (averaging about 7 years old), the annual cost of repairs has always been less than the annual repayments would have been on a new month. Worst was a new clutch at £600, but that's only really 3-4 months of payments on a replacement. Of course, I don't use the car for work so don't find it being in the garage for a couple of days a year to be a big inconvenience.

AdrianC

teabelly wrote: »

No I don't.

View "repairs" as "maintenance"? Clearly. And that's why you think older cars break down.

Both need to be serviced and maintained but the new car will be under warranty

Oh, well, there we go - that's everything covered, then!

so the repair costs will be less/non existent and maintenance costs will generally be small service items and nothing substantial as the new car won't have covered the mileage to need major service items/repairs for several years.

You seem to be forgetting the heavy incentives to stick with main dealer servicing - at exhorbitant hourly labour rates - for newer cars, and still appear to have ignored depreciation and finance costs, and you. If you're trying to keep a new car into warranty, then ignoring the seven year Koreans (which still exclude wear and tear, of course, so very little will be covered towards the end of that period), you're going to be including at least £2-3,000 per year for them. EVERY year. If you're leasing, then don't forget any costs related to the end-of-lease condition report and any excess mileage charges.

jaydeeuk1

teabelly wrote: »

No I don't. Both need to be serviced and maintained but the new car will be under warranty so the repair costs will be less/non existent and maintenance costs will generally be small service items and nothing substantial as the new car won't have covered the mileage to need major service items/repairs for several years.

Even new cars you'll still need to change tyres, possibly pads (clutch too if you have a hyundai) etc within the life of a 3 year finance deal if above avr mileage. If you have some fancy bridgestones on already, you'll be wanting to keep the same make. On older cars you can probably change to a decent mid range set without affecting resale. Not sure what would happen if you handed a can on PCP back with ditchfinders on. Plus to keep the service record you'll need to get annual service which can be easily as much as £200 for them to change oil, visually check stuff and give car a wash. On an older car I'd probably change the oil at a minimum (£20ish) and then give things a once over.

So I'd disagree with you.

kwmlondon

I've often wondered why people can't do a sort of car-swap deal but with finance, i.e. if I wanted a car for a month I'd pay the finance to someone who didn't need it for that time, pay an appropriate amount towards the servicing etc. then I'd get a nice, new car to drive and the owner of the car would get the finance paid for a while.

Of course, there would have to be an agreement on mileage, maybe I'd have to put a deposit down that was refundable on the car being returned in the condition it was taken on etc. but there must be a good opportunity for a sort of swap deal to be done.

It would be cheaper for me than hiring a car and good for the person with the problem paying off the finance.

Any suggestions on how it could work?

Herzlos

There'd be all sorts of insurance and liability issues making it very expensive for the owner (what if you knacker the clutch or get a string of parking tickets?), and I wouldn't be surprised if there was a no subletting clause.

A lease company with the option to change cars for a modified payment might work better though, you get a new car A, and downgrade it after a year to about a year old car B, and change your premiums appropriately. But again it'd probably still be far too expensive to be viable.

kwmlondon

http://www.telegraph.co.uk/motoring/how-to/10624356/How-to-rent-out-your-car.html