Car on finance, can't pay it

AnotherJoe

Mr.Generous wrote: »

AnotherJoe wrote: »

That wont affect existing leases. Yes, many people in this position, from memory circa 85% of new cars are bought on PCP.

And how many of these people have mortgages and will prioritise keeping their homes? I think interest rate rise would hit hard all other lenders whether fixed rate or not.

Fair point if they are up to the limit on what they can afford like the 23 year old in another thread whose just lost his job and has a £430 monthly payment on his car he cant afford,

Though i think you mean borrowers

AlexDee

This sort of thing really highlights the issues we have with a lack of financial education in schools. I did exactly the same thing as the OP and bought a car costing me £330 p/m. I was 24 at the time, earning good money and living at home with Mum and Dad.

I then bought a house and started drowning financially for some time. Luckily I’ve made a number of changes and this was the kick up the backside to educate myself and start being more financially savvy.

I was able to do a voluntary termination on the finance after 33 months when I reached the 50% balance. I won’t be making the same mistake again!

OP, I’d suggest looking at how close you are to a voluntary termination. Best approach the finance company as soon as possible. They just may have options available that will ease the stress you’re under. And as others have said, prioritise getting some money in. Good luck.

tetley

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...

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.

Well I did just that back when I was 21, who cares about a house when your that age. I fully enjoyed life and only bought a house 20 years ago, aged 32.

parking_question_chap

Parents really need to start educating their children about financial planning.

Herzlos

parking_question_chap wrote: »

Parents really need to start educating their children about financial planning.

Agreed, but there should also be some form of basic adulting education at school.
I was taught pretty advanced maths/science but no-one ever covered things like compound interest, how loans work, paying bills or taxes etc.

DCFC79

parking_question_chap wrote: »

Parents really need to start educating their children about financial planning.

Agreed but it depends if the parents are able to educate them, not all parents can.

I also think the schools should start doing it.

Pennywise

DCFC79 wrote: »

I also think the schools should start doing it.

Unless they're going to do it properly, it'll be a waste of time, like a lot of their PSE, philosophy, ethics "teaching" which both teachers and pupils regard as dossing lessons.

It needs proper teaching, with proper resources, proper tests, and included in proper exams. Only then will teachers give any priority/importance to it.

At the moment, things like simple/compound interest are very lightly covered in Maths lessons, but of course, nearly half the kids don't achieve a "good pass" at GCSE Maths, so probably aren't listening and aren't understanding it anyway - especially those who have the "can't do maths, me" attitude. It needs to be taught separately from Maths!

Same with English - they don't teach "form filling" anymore, don't teach how to write a cv. It's shocking. But it's OK because the poor kids are forced to read Shakespeare!

But yes, basic life skills should be included in the schools curriculum as many parents weren't taught it themselves so are incapable of teaching their own kids. There's plenty of stuff that could be removed or condensed to make room for it.

parking_question_chap

Herzlos wrote: »

Agreed, but there should also be some form of basic adulting education at school.
I was taught pretty advanced maths/science but no-one ever covered things like compound interest, how loans work, paying bills or taxes etc.

Yes, some subjects are really outdated and should be replaced with basic finance. Really how useful is it knowing how a river is formed or who the monarch was in 1401? Or being taught how to draw a vase?

I think the amount of time spent teaching history, art and geography needs to be reduced and the space filled with more useful life skills from the start of secondary school.

Mr.Generous

You've got to wonder if having a huge population of financially savvy people would be so bad for the economy that the establishment don't want it. Certainly the bankers, finance classes. They don't make much from the 'careful' (tight fisted) like myself.

fred246

Tight fisted? I've always thought you would be generous.