Car Bought Before Coronavirus

GsiBoss

Hi. I bought a 3 year old car from a well known dealership in February with a car loan with a third party fianance company. i am very happy with the car but then in March Coronavirus kicked off and i have been on furlough since start of April.  I am starting to think once the furlough as finished my employer is going to possibly make me redundant meaning that i will  not be able to afford the car payments any more.  If this is the case and the car gets taken back. What is the situation with any outstanding amounts, as i was on a good wage but if I loose my current job i do not think i will find another to cover the required amounts each month to keep the car . Cheers   Steve

flashg67

Sadly, I don't think you'll be alone by the time this is all over. You will still owe the outstanding balance at any given point. You could sell the car, or let them take it but car values are down at the moment so you will likely still have a shortfall. Have you thought about asking the finance co for a payment holiday? Even if you don't need it now, it may help to have the cash you'll save further down the line.
Try not to just stop paying without contacting them first as this will damage your credit rating

Herzlos

Your best option, credit history wise, would be to sell the car and take out a loan to cover the shortfall.

Kattekwaad

Herzlos said:

Your best option, credit history wise, would be to sell the car and take out a loan to cover the shortfall.

Have to agree with this, but probably best waiting until you know either way.  In the meantime get your ducks in a row and price it sensibly (ie less than any sensibly priced cars, the first cut is always the cheapest)