Car Finance

Stuckinarut

I'm not sure if this is the right place for this.

I bought a car in August 2012, and then fell pregnant in Aug 2013. I could no longer manage the contractual monthly payments. I contacted the finance company and they agreed to reduce the payments, however I have still incurred a default. I have paid more than 50% of the original agreement. However with the payments I am making it will still be another 2 years until it is paid. I have since had another child and I am struggling to maintain the new agreement. Am I still within my rights to ask to return the car, them sell it and then pay the difference? The car is an unnecessary expense for us at the moment. I am in Scotland if it makes a difference.

Herzlos

You would be better trying to settle the loan and sell the car yourself, if they won't let you voluntarily terminate (they are not obliged to if you've defaulted).

If you give it to them to sell, they'll stick it in an auction and chase you for the difference. If you sell it yourself, you can hold out for a better price.

neilmcl

Stuckinarut wrote: »

I'm not sure if this is the right place for this.

I bought a car in August 2012, and then fell pregnant in Aug 2013. I could no longer manage the contractual monthly payments. I contacted the finance company and they agreed to reduce the payments, however I have still incurred a default. I have paid more than 50% of the original agreement. However with the payments I am making it will still be another 2 years until it is paid. I have since had another child and I am struggling to maintain the new agreement. Am I still within my rights to ask to return the car, them sell it and then pay the difference? The car is an unnecessary expense for us at the moment. I am in Scotland if it makes a difference.

What type of finance agreement is it, eg, HP/PCP?

If, as you have said, you have paid more than 50% of the total finance then you may be able to simply voluntary terminate (VT) the agreement and hand back the car.

Stuckinarut

It's HP i have, my car is already valued less than I owe so I'm aware i'd need to pay the difference, however I can't afford to pay to keep it and maintain it so I feel like no other option. I thought by giving it back and paying the difference I only have the car payment and not insurance, road tax etc.

neilmcl

Stuckinarut wrote: »

It's HP i have, my car is already valued less than I owe so I'm aware i'd need to pay the difference, however I can't afford to pay to keep it and maintain it so I feel like no other option. I thought by giving it back and paying the difference I only have the car payment and not insurance, road tax etc.

Just VT it then, nothing further to pay.

Read the following: http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

rs65

neilmcl wrote: »

Just VT it then, nothing further to pay.

Read the following: http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

That article says they can refuse VT if you have previously defaulted (if I'm reading it correctly).

neilmcl

rs65 wrote: »

That article says they can refuse VT if you have previously defaulted (if I'm reading it correctly).

I missed the bit where the OP said h had a default.

OP, can you confirm that you've actually had a default?

Rain_Shadow

stuckinarut wrote: »

i have still incurred a default.

neilmcl wrote: »

i missed the bit where the op said h had a default.

Op, can you confirm that you've actually had a default?

. .

neilmcl

Rain_Shadow wrote: »

. .

I can see what he posted but I want the OP to confirm she's actually had a default notice, rather than just assume she's been in default.

iolanthe07

I can see what he posted

With two pregnancies I suspect the OP is a she.

Rain_Shadow

iolanthe07 wrote: »

I can see what he posted

With two pregnancies I suspect the OP is a she.

Always pays to read what other posters write.