Loan companies not listening....

[Deleted User]

welshgje said:

Thrugelmir said:

You owe £14k on the car and are applying for a further £14k advance. Making £28k owed. That's the issue.

Do you owe money on any other loans or credit cards? 

Yes - I'm guessing that's what the online systems are seeing. The reality is one will pay the other - lowering in the payment. Is that what I mean? I'm crap with finances.

Yes - my wife has a car on Toyota finance. That comes to an end in June but we are just giving that one back. Awful little car it has been.

Credit card - yes but not massively used. There for emergencies.

As I sit here, we are talking about selling up everything. Pulling all our finances in and seeing where we are. Especially with prices going up. Maybe it is time to downsize for a year or two.

Thanks everyone for comments. Really appreciated.

G

Lenders have to consider your debt as PCP + Loan, not PCP - Loan as there is no guarantee you will use the money to pay off the PCP - you no doubt want to, but history is full of good intentions of people who want to do right, but then the dog gets sick, the roof falls in, family emergency blah blah and suddenly the loan is frittered away and you owe both. Hence their lending calculation is based on combined debt and if that is affordable.

As above, you'd do better trying to flog the car to one of the firms, given the prices of second hand cars now, you might well get at least enough for the balloon and can then use the rest to buy something more affordable.

welshgje

Agree with everything people say. The car is a VW T6 van - it's our family car - so worth a lot more than the bubble payment. We are at the moment looking at all options and are considering selling everything and going to project reset with other things as well.

Just wish we could speak to a person to explain the situation. Hell, I don't care if the loan companies pay the car off direct for me so they know where the money is going.

Thanks again everyone for your comments and not judgements. Really appreciated.

G

Sncjw

welshgje said:

Agree with everything people say. The car is a VW T6 van - it's our family car - so worth a lot more than the bubble payment. We are at the moment looking at all options and are considering selling everything and going to project reset with other things as well.

Just wish we could speak to a person to explain the situation. Hell, I don't care if the loan companies pay the car off direct for me so they know where the money is going.

Thanks again everyone for your comments and not judgements. Really appreciated.

G

Even if you spoke to someone they will still be assessing your new loan based on affordability on double the debt. 

penners324

As others have asked, what have VWFS offered?

MalMonroe

welshgje said:

Agree with everything people say. The car is a VW T6 van - it's our family car - so worth a lot more than the bubble payment. We are at the moment looking at all options and are considering selling everything and going to project reset with other things as well.

Just wish we could speak to a person to explain the situation. Hell, I don't care if the loan companies pay the car off direct for me so they know where the money is going.

Thanks again everyone for your comments and not judgements. Really appreciated.

G

Can't you just extend the PCP for another year? That's what I did. But then again, mine is with Toyota and I have to say I really love my little car and am sorry you didn't like yours. You don't have to pay off the balloon - you could give the car back and walk away. Or you could try 'we buy any car' or another one of those places - get a quote and see what they say, they accept cars that are still on agreements. The latest quote they gave me was £2k more than the balloon payment I'll have to pay. You could cash your VW in and hopefully buy something cheaper.

If you really want to talk to somebody you could do much worse than have a word with one of the free debt help agencies. The phone calls are free and so is the advice. You don't have to take their advice but they can really help with financial problems, difficulties, etc. They are understanding and non-judgemental.

Link - https://www.stepchange.org/

There are other free debt help agencies but I used Stepchange and they helped me turn my life around. If you can both become more financially savvy, it will make your lives much easier, believe me. 

Good luck!   

ManyWays

welshgje said:

Yes - my wife has a car on Toyota finance. That comes to an end in June but we are just giving that one back. Awful little car it has been.

Have you looked at whether you can Voluntarily terminate that finance right now? If it was HP or PCP you should be able to do that now and not owe any more and it wont hurt your credit record. if it is lease car, not possible. With that out of the way your affordability should look much better.

DrEskimo

ManyWays said:

welshgje said:

Yes - my wife has a car on Toyota finance. That comes to an end in June but we are just giving that one back. Awful little car it has been.

Have you looked at whether you can Voluntarily terminate that finance right now? If it was HP or PCP you should be able to do that now and not owe any more and it wont hurt your credit record. if it is lease car, not possible. With that out of the way your affordability should look much better.

With the current inflation of used car prices, they stand a good chance of getting equity back by simply trading/selling the car to a local dealer or garage. It's highly likely to be worth more than the settlement.

OP you can do this when ever you want. No need to wait till the end of the term.

It will also be easier than having to arrange collection with the finance company.