Advice on HP of a Car after redundancy

RDB1

Hello,

So I was made redundant in September, I have been looking for a job etc, and paying my car payments each month. I am able to pay another two months for sure, but after that, I would have to hope that I land a job.

Currently, I have owned the car for 6 months. It was bought from a dealer at a total cost of £10,115.44 I have looked over the agreement. The half rule is a total of £5,057.72. But obviously, I don't have that. Currently, a trade in value of the car is £4600. But there is another clause that says I can pay a third which is £3,371.81, but they don't have to take the car back unless they get a court order.

I was thinking of two options:

• See can a family member get a loan for the settlement figure.
• Contact the finance company to see if they can reduce the payments

I am just after some advice from people who have been in a similar situation. Redundancy is not a nice experience and can happen to anyone. If anyone could give me some advice that would be great.

molerat

The 1/3 clause means that if you default on payments they cannot just rock up and reclaim the car but have to get a court order first, it is not something you get to choose. Option 1 would be best for your credit file, an AP marker will stuff you for some time, but will you be able to pay them back.

RDB1

Option one would be best as with another two payments, I may then ask for another settlement figure. As although the part-exchange value is low, I reckon looing at the market currently I could get between £6000 to £7000, as the settlement figure they have offered is £7500.

RDB1

molerat wrote: »

The 1/3 clause means that if you default on payments they cannot just rock up and reclaim the car but have to get a court order first, it is not something you get to choose. Option 1 would be best for your credit file, an AP marker will stuff you for some time, but will you be able to pay them back.

Can I ask what an AP Marker is?

whambar

Hello

Sorry to read your position

Credit to you at being proactive not reactive and not blaming others

You have already checked trade value and costs etc

The thirds rule is about repossession (can’t do so without court order etc)

The half’s rule means you can return car (VT) is car if paid 50% of total due including deposit etc. However of course no car and still need MOT and to be in condition comsumerat with age etc

A family member can take a loan for the settlement but it will not be far off what you paid for it , whilst the may get a decent APR from a
Bank if they have good history etc and it may be cheaper per month how could you pay a family member if can’t pay finance company - could cause a rift that lasts forever if you can’t pay etc. I’d have this is a Plan B

Personally I would first discuss with finance company explain situation and see if they can offer any options to help. Extending term will cost you far more though I’d have this a a plan A

Can u get your car to earn its own monthly cost - by that I mean do some parcel deliveries, local mini cabbing (if allowed) or delivering takeaways a few evenings per week?

Good luck

TadleyBaggie

RDB1 wrote: »

Can I ask what an AP Marker is?

Arrangement to Pay, i.e. paying reduced payments.

DrEskimo

You can check what your settlement is using this site:

http://www.financecalcs.co.uk/Calcs/Settlement.php

Valuation, you can use WeBuyAnyCar and the like to try and work out its rough value. Worth checking AutoTrader too, but remember you won't get as much as trade. My typical rule of thumb is WBAC valuation +£2k.

I would suggest you try and settle the finance now if you can. Do you have any savings to settle any shortfall + get a cheap run around until you get back on your feet.

Best of luck!

RDB1

whambar wrote: »

Hello

Sorry to read your position

Credit to you at being proactive not reactive and not blaming others

You have already checked trade value and costs etc

The thirds rule is about repossession (can’t do so without court order etc)

The half’s rule means you can return car (VT) is car if paid 50% of total due including deposit etc. However of course no car and still need MOT and to be in condition comsumerat with age etc

A family member can take a loan for the settlement but it will not be far off what you paid for it , whilst the may get a decent APR from a
Bank if they have good history etc and it may be cheaper per month how could you pay a family member if can’t pay finance company - could cause a rift that lasts forever if you can’t pay etc. I’d have this is a Plan B

Personally I would first discuss with finance company explain situation and see if they can offer any options to help. Extending term will cost you far more though I’d have this a a plan A

Can u get your car to earn its own monthly cost - by that I mean do some parcel deliveries, local mini cabbing (if allowed) or delivering takeaways a few evenings per week?

Good luck

I was thinking that if I get a loan for the car, then I own the car, I can then sell the car, and then I could owe the family member some money, if needed. Unfortunately I cant use the car for deliveries etc as its limited to 5000 miles per year.

RDB1

DrEskimo wrote: »

You can check what your settlement is using this site:

Valuation, you can use WeBuyAnyCar and the like to try and work out its rough value. Worth checking AutoTrader too, but remember you won't get as much as trade. My typical rule of thumb is WBAC valuation +£2k.

I would suggest you try and settle the finance now if you can. Do you have any savings to settle any shortfall + get a cheap run around until you get back on your feet.

Best of luck!

I have done WBAC, and checked Autotrader and eBay etc to see what the market is. I have a settlement figure of £7500. With your rule I could sell the car for £6500, or even a bit more maybe £7000. Then I would only owe that family member £500 which is not so bad, or at worst £1000.

I have some savings £2500, but I have thought about using this for a runaround, rather than pay the car company with it. As my original plan was to see if they could get a loan, buy the car, then sell it, pay the loan off and then any extra with my savings if need be. Then buy a cheap run around for say £1000 and the rest on tax and insurance.

DrEskimo

RDB1 wrote: »

I have done WBAC, and checked Autotrader and eBay etc to see what the market is. I have a settlement figure of £7500. With your rule I could sell the car for £6500, or even a bit more maybe £7000. Then I would only owe that family member £500 which is not so bad, or at worst £1000.

I have some savings £2500, but I have thought about using this for a runaround, rather than pay the car company with it. As my original plan was to see if they could get a loan, buy the car, then sell it, pay the loan off and then any extra with my savings if need be. Then buy a cheap run around for say £1000 and the rest on tax and insurance.

Sounds sensible. Obviously borrowing from a family/friend will be a much easier and you won't have to worry about fees and costs involved, but of course money does have a habit of souring relationships...something to weigh up...

One last place to try is Tootle.com. I had a good offer on my last car from a dealer using them. It was a dealer from Essex and they came and picked the car up from my house. They paid me and I settled the finance in full and had £500 in my pocket. Couldn't have been easier.

RDB1

DrEskimo wrote: »

Sounds sensible. Obviously borrowing from a family/friend will be a much easier and you won't have to worry about fees and costs involved, but of course money does have a habit of souring relationships...something to weigh up...

One last place to try is Tootle.com. I had a good offer on my last car from a dealer using them. It was a dealer from Essex and they came and picked the car up from my house. They paid me and I settled the finance in full and had £500 in my pocket. Couldn't have been easier.

Just had a quick look on Tootle, it looks as though its based on trade in price which for mine is £4500. I obviously could not let it got for that, as a last resort of getting a loan.