Car Finance & Settlement help???

MissDitton

Hi All,


Just after some advice and info. My OH bought a megane through Arnold Clark in 2006 the finance balance after the 3 year period was around £7000, at the time paying off the balloon payment or handing back the car were not an option so he refinanced (this was before we met)


Now, another 3 years later the same balance is still outstanding (or just shy as he barely ever paid it, in and out of work, really bad with money etc)


He is completely matured from this whole situation and has now got an extremely well paid job, house etc.


My question is does anyone have any suggestions as to where we go, we do not have the £7000 to pay, to give the car back we would have to pay penalties as he went WELL over the mileage and the car is worth £600 today.


I am completely lost, do I give the car back and make them an offer etc? any advice would be great..personally I would love to see the thing on a scrap heap!!!


Thanks


MissD

motorguy

MissDitton wrote: »

Hi All,


Just after some advice and info. My OH bought a megane through Arnold Clark in 2006 the finance balance after the 3 year period was around £7000, at the time paying off the balloon payment or handing back the car were not an option so he refinanced (this was before we met)


Now, another 3 years later the same balance is still outstanding (or just shy as he barely ever paid it, in and out of work, really bad with money etc)


He is completely matured from this whole situation and has now got an extremely well paid job, house etc.


My question is does anyone have any suggestions as to where we go, we do not have the £7000 to pay, to give the car back we would have to pay penalties as he went WELL over the mileage and the car is worth £600 today.


I am completely lost, do I give the car back and make them an offer etc? any advice would be great..personally I would love to see the thing on a scrap heap!!!


Thanks


MissD

What year / miles / condition is the car in now?

MissDitton

Hi Paul,


it is 2006 1.6 Maxim, the condition I would say is Fair (a big scratch on passenger door) and it has gone just over 100,000 miles.

MissDitton

we would obviously pay for damage repair if this was going to help us, I just have no idea where to go and it pains me to think we will have to pay £7k for a car that is worth £600.


I am wondering if a full and final offer with return of vehicle would work.

burlington6

Where is the issue with paying back more than the current value of the car. That is basically vehicle finance. The fact that your other half never paid isn't their fault.

motorguy

MissDitton wrote: »

we would obviously pay for damage repair if this was going to help us, I just have no idea where to go and it pains me to think we will have to pay £7k for a car that is worth £600.


I am wondering if a full and final offer with return of vehicle would work.

Any rights you would have around a voluntary termination with nothing more to pay would have been removed because of the missed payments - from memory that negates that right as its a "breach of contract"

Not sure.

Sticky one

MissDitton

burlington6 wrote: »

Where is the issue with paying back more than the current value of the car. That is basically vehicle finance. The fact that your other half never paid isn't their fault.

Thanks I am not Naïve I understand what car finance is and no way shape or form am I trying to blame anyone other than the other half. I was just looking for some more options i.e can we give it back as they set the finance with the "future value figure" etc.

MissDitton

motorguy wrote: »

Any rights you would have around a voluntary termination with nothing more to pay would have been removed because of the missed payments - from memory that negates that right as its a "breach of contract"

Not sure.

Sticky one

Thanks Paul, it well and truly is a sticky one. The finance is up and they are obviously chasing the final figure. I am just wondering is it financially better for us to offer the car back and ask them to settle or are we best trying to figure a way out. We don't want the car it is redundant and not fit for purpose anymore.


Thanks Again

Slowly_does_it..

The way I see it is you still owe them the 7000. (Or whatever the outstanding finance is) If you were to get the car repaired, then take out a personal loan for the full repayment figure, you could then sell the car and take that money and start to pay off the loan with that cash.

Yes, this would leave you with a 6000 pound loan, at whatever rate you can get, and no car to show for it.

I assume you have spoken to them about you keeping the car for another year or so, and overpaying the finance, until such time as the remaining figure is equal to the value of the car, and then either handing back, or selling it to clear the last of the finance? - Not really the best if you say it is redundant.

Another really crazy idea MIGHT be to talk to them about selling you a newer, more suitable car, taking the megan in as a trade in, and then adding the existing 7000 to the finance you have arranged for the new car, however I would seriously vote against this, you will only loose money fast on a new car! - But it MIGHT be an option!

MissDitton

Slowly_does_it.. wrote: »

The way I see it is you still owe them the 7000. (Or whatever the outstanding finance is) If you were to get the car repaired, then take out a personal loan for the full repayment figure, you could then sell the car and take that money and start to pay off the loan with that cash.

Yes, this would leave you with a 6000 pound loan, at whatever rate you can get, and no car to show for it.

I assume you have spoken to them about you keeping the car for another year or so, and overpaying the finance, until such time as the remaining figure is equal to the value of the car, and then either handing back, or selling it to clear the last of the finance? - Not really the best if you say it is redundant.

Another really crazy idea MIGHT be to talk to them about selling you a newer, more suitable car, taking the megan in as a trade in, and then adding the existing 7000 to the finance you have arranged for the new car, however I would seriously vote against this, you will only loose money fast on a new car! - But it MIGHT be an option!

Thankyou, my initial idea was as I have a great credit rating and my car has no existing finance was too get rid of his by hook or by crook, pass mine to him and get myself a new one on finance, his credit rating is in such a sorry state there is no chance of them selling a new one back to him


and to be honest I wouldn't, after he has messed them around so much, albeit Creation Finance have not been at all helpful.


I think I will have to save up and pay the balance as quickly as we can and be done with it.

Mr_Mink

Slowly_does_it.. wrote: »

Another really crazy idea MIGHT be to talk to them about selling you a newer, more suitable car, taking the megan in as a trade in, and then adding the existing 7000 to the finance you have arranged for the new car, however I would seriously vote against this, you will only loose money fast on a new car! - But it MIGHT be an option!

My understanding is that they can only really tack on about £1000 of negative equity onto the car.