In need of advice

CalWilkinson

Hi there, this is my first post so go easy on me, both me and my partner are 24 with a mortgaged house, we owe about £111,000 on the house

Currently we have 2 cars one is 15 plate the other a 64 both on pcp agreements, we had abit of a rocky first year of house ownership which means we have £3300 on a 0% credit card

I work close to home now so I have no need for my car, would I be getting a loan to buy the car then sell it?

We don't have any money in savings and we are both usually bouncing in and out of overdrafts, any advice would be helpful

Thank you

rockm87

Hi and welcome!

the first point of call is to complete a full statement of affairs: http://www.stoozing.com/calculator/soa.php

so everyone here can see what you have coming in and going out, so we know how best to advise you!

best of luck :-)

Aquamania

CalWilkinson wrote: »

Hi there, this is my first post so go easy on me, both me and my partner are 24 with a mortgaged house, we owe about £111,000 on the house

Currently we have 2 cars one is 15 plate the other a 64 both on pcp agreements, we had abit of a rocky first year of house ownership which means we have £3300 on a 0% credit card

I work close to home now so I have no need for my car, would I be getting a loan to buy the car then sell it?

We don't have any money in savings and we are both usually bouncing in and out of overdrafts, any advice would be helpful

Thank you

You should be able to simply sell the car, but you'll probably need the lenders agreement.

If you sell it back to a recognised dealer, they can probably sort it all out for you, including the finance.

It will be difficult to sell it any other way.

National_Debtline

Hi CalWilkinson, welcome to MSE.


Personal Contract Purchase agreements are a form of conditional sale, this means that the vehicle isn't yours until the final payment is made (so you cannot sell it without the lenders explicit, written consent). PCP agreements also have a mileage restriction and take into consideration the future value of the car and this can make it quite hard to work out what is actually owed on the agreement.


If no longer want the car then you should have the right to voluntarily terminate the agreement under S99 of the Consumer Credit Agreement. This means that you can send a letter to the finance company and end the agreement early, resulting in you being liable for 50% of the total agreement, minus the money paid to date (and, of course, you will need to return the car). Be careful though, from what you have described there could still be some money owing and if you can't pay that in a lump sum it could damage your credit file.


It does sound as though you have a few issues you are juggling (between the car and the overdrafts) I would suggest you get full, free debt advice to consider your options.


Laura
@natdebtline