options for unaffordable car finance

loady

I am one on the into a 3 year car hp finance deal. I am no longer going to be able to afford it as I am about to loose my job. It is for 36 months and the payments are 715 pcm, what are my best options of getting it off my hands with as little loss as possible ?

jonesMUFCforever

What are the figures?
Realistically you will get more from a private sale than sell it back to the dealer but you have the problem of the title to the car not being released until the HP has been paid.
Do you have any savings at all?
Are you likely to get redundancy?

Pixie5740

With monthly payments of £715 I'm guessing this is a high value car which means it might not be easy to shift privately. People tend to use finance and want manufacturer's warranties with those kind of cars.

My advice is to contact the finance company and explain your situation. From their point of view it's better to get this nipped in the bud rather than have to chase you for payments.

armchaireconomist

You cannot privately sell the car as you don't OWN it. The finance company do.


Ring them, explain the situation and see what they say. The outstanding balance is almost certainly more than the car is worth generously through private sale anyway.


Chalk it up to experience and don't commit £700 PCM to pay a tonne of interest on a car. I'd rather have a £4k runaround paid for and £21,740 cash in my pocket personally than drive something fancy so people look and think "ooh, he's doing well for himself"

foxy-stoat

loady wrote: »

I am one on the into a 3 year car hp finance deal. I am no longer going to be able to afford it as I am about to loose my job. It is for 36 months and the payments are 715 pcm, what are my best options of getting it off my hands with as little loss as possible ?

I would look for another job now, hopefully you will be able to continue with the payments when you start your next one....I think trying to get out of this finance deal will be the least of your worries if you cannot find another job.

Good luck !

Gaz83

armchaireconomist wrote: »

You cannot privately sell the car as you don't OWN it. The finance company do.

Not strictly true. There's nothing to stop a person privately selling a car on finance, as long as the finance is cleared at the point of sale.

Of course, this dilutes the pool of potential buyers, as many people can't be bothered with going through the hassle of doing this and would rather buy from a car that's not tied to finance.

paddyrg

Can you avoid selling anyhow whilst you get another job? Talk to the finance company ASAP and work WITH them at all costs. Fact is you'll lose not just the interest you're committed to, but also the huge devaluation of being a first owner of the vehicle (making its secondhand value dramatically lower than you paid), and the car is 'worth more' to you than it will be to anyone else

MataNui

I would echo what others have said. Selling a financed car privately is pretty difficult. It tends to put a lot of people off. Selling an expensive car privately is also pretty difficult so you kind of dont really have much chance of getting rid that way. In any case even if you did sell (and got a top price) you are still not going to cover the depreciation alone never mind the interest.

You are thinking of selling at what must be close to the worst possible time in terms of you taking a large financial hit. If the car is that expensive then your probably still going to owe several thousand after its sold.

But...

If you are in a position to afford a car with those sorts of repayments i am guessing you are in a sort of job that your skill set makes you pretty valuable. So if you can i would try to hold on until you get another job. If you dont have enough of a buffer to cover a few months repayments then to be honest given the several grand you will still owe after selling it you would be screwed anyway.

foxy-stoat

MataNui wrote: »

I would echo what others have said. Selling a financed car privately is pretty difficult. It tends to put a lot of people off. Selling an expensive car privately is also pretty difficult so you kind of dont really have much chance of getting rid that way. In any case even if you did sell (and got a top price) you are still not going to cover the depreciation alone never mind the interest.

You are thinking of selling at what must be close to the worst possible time in terms of you taking a large financial hit. If the car is that expensive then your probably still going to owe several thousand after its sold.

But...

If you are in a position to afford a car with those sorts of repayments i am guessing you are in a sort of job that your skill set makes you pretty valuable. So if you can i would try to hold on until you get another job. If you dont have enough of a buffer to cover a few months repayments then to be honest given the several grand you will still owe after selling it you would be screwed anyway.

OP will be ok for a while, he has got 5 figures locked up in ISA's.

https://forums.moneysavingexpert.com/discussion/3837479