Would you sell car to clear debts??

consnmattsmom

As you can see from my sig we owe quite a bit.:o However we have a high powered car that costs a fortune in petrol and gonna be high band tax bracket. We need a car but because my husband has bought a scooter (to reduce all round costs) I only need a smaller car for my job and getting children around during the day and for odd family trips.

The car is currently on finance so we cant sell it privately (I believe) so we are considering taking out a consolidation loan (with lower int rate and over same term so payments will be same). We should get approx £7500-£8000 for car (owe approx £8800) so we can then spend about £4000 on a smaller good car to last us a few years and then pay between £3000 and £4000 depending what we get for car off debts.

Is this a good idea?? I cant see a reason for it not to be really. The only thing that concerns me is being turned down for a loan as we had a default in 2003 that was cleared almost straight away and has affected us getting some credit in the past but we have recently applied and got a couple of 0% int c cards.

Sorry its a bit long.

poppyjay

hi i would sell if it was me but everyone differant. Its what ever suit you best Also is there no way you could do without a car at all what are the bus links like for work.Also would you inlaws (if they live near)not lend you there car for family trips (if they have on) sorry cant be anymore help but good luck

Burlesque_Babe

I would definitely sell it. I don't think you need to spend as much as 3-4k on a replacement car. If you have a good look around, you could get a good quality reliable family car for £2,000.

immoral_angeluk

IF you've recently applied for 0% cards don't forget those searches will be on your credit rating and may affect you getting more credit. They don't show as you being accepted they just show as searches and too many in too short a space of time will make potential lenders be wary that you're having difficulties and are desperate for credit....

consnmattsmom

immoral_angeluk wrote: »

IF you've recently applied for 0% cards don't forget those searches will be on your credit rating and may affect you getting more credit. They don't show as you being accepted they just show as searches and too many in too short a space of time will make potential lenders be wary that you're having difficulties and are desperate for credit....

Oh yes forgot about that. Is there any other way out does anyone know when car is on finance through garage?

katelu

I had a car on finance that I sold privately and then paid off the finance arrangement and it was no problem - didn't tell them I had sold the car, just that I wanted to pay off the finance. No problems

David_B_2

consnmattsmom wrote: »

Would you sell car to clear debts??

Just answering your title and my simply answer would be YES, without doubt if I needed to.

All the best and good luck.

consnmattsmom

katelu wrote: »

I had a car on finance that I sold privately and then paid off the finance arrangement and it was no problem - didn't tell them I had sold the car, just that I wanted to pay off the finance. No problems

Oh right thanks. I was under the impression that it would show up on an HPI check if anyone did one to say was on finance. May be worth a try. :T

immoral_angeluk

consnmattsmom wrote: »

Oh yes forgot about that. Is there any other way out does anyone know when car is on finance through garage?

Have you checked your contract to see if you can hand it back after a certain amount of time?

immoral_angeluk

consnmattsmom wrote: »

Oh right thanks. I was under the impression that it would show up on an HPI check if anyone did one to say was on finance. May be worth a try. :T

If it's a straight loan to buy then car then you'd be fine but if it was hire purchase it's technically not your car to sell so would show up on any HPI check.

consnmattsmom

I have contacted the car loan company (Black Horse) who have said that we can sell privately or trade to a garage who will settle the finance and let us buy a cheaper car!!

I like the idea of a garage as less hassle although I know will prob cost us a bit more.

I estimate doing this will wipe about £3000 off our debts and approx 12 months off our dfw date.

Think we gonna start looking tomorrow at a couple of garages.