Help! Can't pay loan!

YB2402

Hi everyone. Thank you for all your answers and advice! My son has applied for so many jobs and really wants to get one soon and keep the car! Fingers crossed! Failing that, we will talk to the finance co, Seat Finance, about returning the car and working out a payment plan for him to pay off the remaining finance. He wants to do that so that his credit history isn't affected for the future. Thank you all again. ��

Lioness_Twinkletoes

YB2402 wrote: »

Hi everyone. Thank you for all your answers and advice! My son has applied for so many jobs and really wants to get one soon and keep the car! Fingers crossed! Failing that, we will talk to the finance co, Seat Finance, about returning the car and working out a payment plan for him to pay off the remaining finance. He wants to do that so that his credit history isn't affected for the future. Thank you all again. ��

If he does anything other than keep up the payments as per the agreement his credit will be affected for the future. A payment plan that deviates from what he originally agreed will show as a default on his credit file.

Brock_and_Roll

Lioness_Twinkletoes wrote: »

A payment plan that deviates from what he originally agreed will show as a default on his credit file.

May not be a bad thing in this case!

Sounds like the OP has a sensible plan in place.

enthusiasticsaver

Hopefully he will get another job soon or that he can sort something out with the car finance people. I doubt you can alter the terms without it showing as a default. It is a hard lesson to learn but at 18 he has time to recover from this and may make him think hard in the future about being sucked into the credit trap before he is financially secure.

normanna

A payment plan will mean his credit rating will be affected so please look at the links above before speaking with the finance company so you have some knowledge before hand so he doesn't make a rash decision.

Broadyx

Are you in a position to repay the finance in bulk? or get a loan yourself to cover it? He could then sell the car privately, which means he will get a lot more than what Seat will give him, and then you could repay your loan with the proceeds of the sale?
anything left over, he may be in a better position to cover than the monthly payments on an expensive car.

worried_jim

In 28 years of motoring I don't think I've spent £20k on all my cars. Bonkers.

Kentish_Dave

What sort of work is he doing while searching for a “proper” job again? Can’t he get enough hours of shop work, bar work or similar to tide him over?

Les79

Kentish_Dave wrote: »

What sort of work is he doing while searching for a “proper” job again? Can’t he get enough hours of shop work, bar work or similar to tide him over?

In the context of an 18 year old, is it not likely that their idea of "proper" work involves working in a shop or bar by virtue of their relative inexperience?

I only ask as it might be a case that they ARE looking for such work "to tide him over" but the work isn't available.

Which makes me wonder if you have any further thoughts on the topic?

I, personally, would suggest that OP and son call up the finance company and be honest and upfront about the situation. Ask whether there is scope for a nominal repayment plan whilst new work is being found. Or see what other options exist.

Ultimately, people lose jobs all of the time and the finance companies will deal with many identical queries day in day out.

There's also a question to be made about "irresponsible lending" (your favourite phrase! ) and whether it is sensible giving an 18 year old with no credit history a 20k loan. BUT as long as the checks were completed then it is probably absolutely fine and such a complaint might be fruitless. No harm in being a bit critical, though

fatbelly

worried_jim wrote: »

In 28 years of motoring I don't think I've spent £20k on all my cars. Bonkers.

There's a 19-year old elsewhere on this board trying to get finance on a new £45,000 Range Rover!

https://forums.moneysavingexpert.com/discussion/6023626/building-credit-rating-19