Car on finance, can't pay it

AndrewSandbach

Hello everybody,

I am hoping that somebody will be able to help with a problem that I find myself in. Firstly, apologies if this thread is in the wrong section, I thought this one might be the most appropriate but if it not please can an admin move it to the right one?

I am 23 years old and live with my parents. I have a car on finance which is costing me £411 a month plus an additional £27 a month for the service plan, alloy wheel cover and a few other extras. I have unfortunately recently lost my job so I am unable to carry on paying for this car every month because I just don’t have the monthly income coming in anymore to pay for this. My parents don’t have any money to pay for the car or help me and there is nobody who would be able to help, no other family members or friends.

I just wanted to know what is going to happen because I can’t pay for this car anymore. I imagine they car company are going to come and take the car from me but there will still be loads of outstanding debt left on the car that needs to be paid. Will they setup a payment plan for this? I am really worried about this and just wondered if anybody else has gone through this.

I got the car in December 2016 and since then I have never missed a payment. The car was worth around 28-29k and I think there is just under 20k left on the car. I imagine the car is probably worth about 15-16k as I haven’t done too many miles in it.

Any help on this would be great.

Thanks,
Andrew

Sea_Shell

Can we assume that your insurance is being paid by DD too? Make sure you don't default this whilst you do still have the car.

Out of curiosity, what car is it...

[Deleted User]

Hi Andrew, have you paid at least 50% of the payments? if for example you brought the car in 2016 under a 4 year agreement you could perhaps do a voluntary termination i.e just hand the car back.
If not what are the chances of getting a new job?

Pension_Geek

Give the car company a phone and explain the situation, they will be able to tell you your options.

Clive_Woody

venison wrote: »

Hi Andrew, have you paid at least 50% of the payments? if for example you brought the car in 2016 under a 4 year agreement you could perhaps do a voluntary termination i.e just hand the car back.
If not what are the chances of getting a new job?

It's 50% of the total amount payable under the credit agreement, not just 50% of payments made if there is a balloon payment at the end of the agreement then he may be some way off repaying half the debt.

System

As previously mentioned phone them up and talk to them, don't bury your head and hope it will go away. You may find they're accommodating and might even offer a payment holiday of a few months. If you don't ask you won't get but if you don't talk to them at all it is pretty much guaranteed the worst outcome will happen.

DCFC79

Get your CV's printed plus cover letters and see if any local firms are hiring, look on indeed or another job ad site if you like.

Exodi

You bought a car worth £29,000 on finance at 21 and you live at home? The £10,000 (+Service Plan, +Insurance, +MOT, +Tax) you've pumped into this car (that you technically don't own) could have been half a deposit for a house...

More fool you but I think it's insane that newly fledged adults can go into a dealership, ask for a brand new swanky car to impress their mates despite (usually) being on a low income, and the dealers facilitate it!

Such a shame, I'm more angry at finance companies enabling this sort of tomfoolery.

Call the dealer and explore your options. Whatever the outcome, I would start looking at second hand cars worth ~2k.

foxy-stoat

Exodi wrote: »

You bought a car worth £29,000 on finance at 21 and you live at home? The £10,000 (+Service Plan, +Insurance, +MOT, +Tax) you've pumped into this car (that you technically don't own) could have been half a deposit for a house...

You only need to look to a song by Queen....

I want it all, I want it all, I want it all.....and want it NOW !

Look for another job chop chop.....look it get yourself into the 50% mark and VT it.....buy a car that you can afford.

Your parents need a talk as well - letting you financially mess yourself up while you live at home - I hope you pay some rent too.

macman

Basics: what sort of 'finance deal'? Is it hire purchase, PCP, lease?

AndrewSandbach

Sea_Shell wrote: »

Can we assume that your insurance is being paid by DD too? Make sure you don't default this whilst you do still have the car.

Out of curiosity, what car is it...

No I paid in the insurance in full in December 2018 which was £1000.

Its a Mercedes A Class.