Car loan

Jade95

I really hope that someone can help...

Basically a couple of years ago (2014) I brought a brand new car on a PCP plan, then stupidly a few months later I hated the car, I then got suckered in by a dealership who offered to take my car and sell me one I liked. I thought it was great, little did I know they set up a Partner Finance Personal Loan through Barclays and added the negative equity to it from the previous car, resulting in payments of £330.27 for 5 years!!

This is something that is becoming near enough impossible to pay and I'm at a lost cause on what to do (if I can do anything)

The loan is for around £10000 now I believe and my car in a private sale would probably get around £6000 leaving a whopping £4000 outstanding.

I know I've been suckered in and made stupid decisions so I don't need reminding of that, I just need some help if there's any out there.

Thanks in advance

DCFC79

Jade95 wrote: »

I really hope that someone can help...

Basically a couple of years ago (2014) I brought a brand new car on a PCP plan, then stupidly a few months later I hated the car, I then got suckered in by a dealership who offered to take my car and sell me one I liked. I thought it was great, little did I know they set up a Partner Finance Personal Loan through Barclays and added the negative equity to it from the previous car, resulting in payments of £330.27 for 5 years!!

This is something that is becoming near enough impossible to pay and I'm at a lost cause on what to do (if I can do anything)

The loan is for around £10000 now I believe and my car in a private sale would probably get around £6000 leaving a whopping £4000 outstanding.

I know I've been suckered in and made stupid decisions so I don't need reminding of that, I just need some help if there's any out there.

Thanks in advance

What is it you want help with ?

bearcat16

My advice would be as follows:

Get a settlement figure for the PCP. You say it's around £10k outstanding now, but I'd get the actual amount.

Then shop around for a personal loan for that amount. As an example, Tesco are offering a £10k loan over 4 years for £222 a month, or 5 years for £180 a month. (3.3% APR - pretty good!)

(Personally, I'd always go for the longer term. You can always make overpayments if you have extra cash)

Then simply pay your PCP finance off with the loan funds.

You'll have lower monthly payments, with the added bonus of owning the car outright should you wish to sell it.

PeacefulWaters

little did I know they set up a Partner Finance Personal Loan through Barclays and added the negative equity to it from the previous car, resulting in payments of £330.27 for 5 years!!

Serious question. What should they have done with your negative equity?

Refinance over a longer term at a lower rate if you can. And run the car until it falls apart.

SeanG79

As it is a personal loan now, have you discussed with the lender, if you paid £4-5k in a lump sum if it would reduce the monthly payments or shorten the term.

If the former, sell your car, but a runaround for like £1k and pay the difference to the lender which will reduce your payments.

If the latter, perhaps you can get a longer term personal loan for the £4k difference and this will reduce the payments.

[Deleted User]

automoney212 wrote: »

This page may be helpful to you

A punch in the face may be helpful to you.

molerat

automoney212 wrote: »

This page may be helpful to you

Only with egg beans and chips :spam:

foxy-stoat

If its a loan not PCP, you can sell the car for £6000, buy one for £2000, pay the £4000 into the loan and get a credit card with money transfer option and get the balance paid off at 0% rate plus fee.


Try and clear the credit card before the 0% deal ends and next time save for a car, don't buy one you cannot afford.