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Made redundant - can't pay car finance.
Gavin14774
Posts: 16 Forumite
in Loans
Hi, the company I worked for went bust in February and I have struggled to find a job since, I have been paying the finance on my car through savings etc but it's all dried up and I can't pay it. I have made 6 months worth of payments on the car of a 48 month agreement. I have read various conflicting opinions/advice and I simply don't know what I can do. Even if the finance company offer to reduce the payments I can't pay it.
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Get yourself along to your local Citizen's Advice Bureau and make an appointment to see a Debt Counsellor.
Don't wait until you begin to default on your debts, none of which are going away.0 -
What is the current settlement figure on the car vs. the value of the car?
Depending on what deposit you put down on the car and the cars depreciation, you may be able to sell the car and settle the finance.0 -
Sell the car, pay that amount to the finance company and then arrange a payment plan to pay any deficit.Gavin14774 wrote: »Hi, the company I worked for went bust in February and I have struggled to find a job since, I have been paying the finance on my car through savings etc but it's all dried up and I can't pay it. I have made 6 months worth of payments on the car of a 48 month agreement. I have read various conflicting opinions/advice and I simply don't know what I can do. Even if the finance company offer to reduce the payments I can't pay it.
How much do you think the car's worth and how much would it cost to settle the finance?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Sell the car, pay that amount to the finance company and then arrange a payment plan to pay any deficit.
How much do you think the car's worth and how much would it cost to settle the finance?
You cannot sell the car without permission from the lender (who owns the vehicle). Unless the finance is a personal loan...0 -
I misread the post and thought it said personal loanYou cannot sell the car without permission from the lender (who owns the vehicle). Unless the finance is a personal loan...
"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
6 months in on a 48 month agreement usually means large negative equity.
You need to take action now and seek real help or this will drag you further down.
Speak to CAB, but also contact the finance firm and get advice from them on how they can help you. If your straight with them they can work with you, they have a department that deals with this, they want their money so it's in their interest to seek a solution.
read this https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/how-to-deal-with-your-creditors/0 -
You might also want to give StepChange a call, they are a debt charity and will be able to guide you. Their advice is free and they will have seen this kind of thing many times before."We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0
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What an absurd suggestion. I have been paying my mortgage and car on a very limited budget while I have had my two heart operations in the last six months. Both have been in contact and both are quite happy. If I sold my car, I would still have the debt. Get real!Sell the car, pay that amount to the finance company and then arrange a payment plan to pay any deficit.
How much do you think the car's worth and how much would it cost to settle the finance?
OP contact those you are paying. You should had done this day one. I am paying the car at around 90% though weekly by BACS. The mortgage is interest only, and has been for six months.
Apologies, I don't often get in this area!0 -
Blackbeard_of_Perranporth wrote: »What an absurd suggestion. I have been paying my mortgage and car on a very limited budget while I have had my two heart operations in the last six months. Both have been in contact and both are quite happy. If I sold my car, I would still have the debt. Get real!
OP contact those you are paying. You should had done this day one. I am paying the car at around 90% though weekly by BACS. The mortgage is interest only, and has been for six months.
Apologies, I don't often get in this area!
On the flip side, the car is never going to be worth as much as it is now0 -
It may be that you can use some of your redundancy payment to make up any shortfall on the car if you have to return it?
The other option is hopefully you will be able to find work and soon and then carry on the payments as normal.
I second contcting stepchange or CAB.
Fortunately you are not doing the one thing that is most tempting and ignoring it. Good luck£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
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