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Help sorting my car finance mistake

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Comments

  • Hello

    I've made a very bad financial decision and I don't think there is a way to fix it but thought I'd see if anyone had any ideas!

    I used to own a small car outright, then we got a large breed puppy, so I went to a dealer to try and part exchange for a car with a larger boot. I got talked into a PCP contract for £200 per month. I was really stupid, didn't do my research, and basically just agreed as I had a lot on- my own fault. 

    It's now 10 months down the line, every month I'm dreading this 200 coming out my account on the 18th, my large breed puppy is enormous and hardly fits in the boot (the whole reason I got the car) and we've just taken on a massive mortgage (sale went on for 10 months with people dropping out so obviously interest much higher than we budgeted from our mortgage in principle). I'm really struggling for money, I have the usual second job to help pay for the large mortage, and I'm just so so disappointed with myself for the car decision. 

    I got nearly 6k in part exchange for my old car, and I just wish I could go back in time and exchange for an old car. I now work from home and don't even drive the car, its got 15k miles on a year based on my old job and I never go out! 

    I've spoken to the finance company, and they say I am in negative equity, the car is worth less than the balancing figure, so its not possible to part exchange for an older cheaper car, and if I want to give my car back I have to pay a massive settlement fee (obviously I was aware of this but didn't really think about it). 

    I'm stuck aren't I? Is there anything I can do? I just want the car gone, and a cheap old car to take the dog to places and back a couple times a week, I feel I've made such a massive mistake. I've thought about not paying it and seeing if they will reposs but I imagine they'll chase me for the settlement figure.
    I'd like to say a really warm  'well done you' ...... for being one of the very few posters who are up front, honest, and take responsibility for your actions - it's so refreshing to hear.
    Most of us on here have made some right-royal messes with their finances, at some time, and know just how you're feeling right now.

    You've had the right idea/thinking all along and the advice you've been given, here, is backing up your thinking.
    Now you've got it straight in your mind you'll have this sorted within a few days 🥰
  • DE_612183
    DE_612183 Posts: 3,052 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The OP has the settlement figure.  £12.5k
    The OP can obtain quotes from local VW dealer, WBAC, Motorway, Arnold Clark etc.  They will be quick and easy to obtain and give an indication of the car value and whether more or less than the settlement figure.
    If the route to sell is viable, then try to get the best possible sell price - local independent "we buy cars for cash" may better the larger national companies.  You won't know until you ask.
    I wonder whether that is the:

    Settlement Figure or
    Balance Outstanding

    They are two different things.

    The car cost 17221
    Part ex was ( just under 6k so lets 5800 for argument sake )

    Balance before payments: 11421

    After 10 payments of £200 - how can the settlement figure be £12.5?

    The balance might be if it includes all the interest - but not the settlement as you should get interest taken off even if you have to pay an early settlement fee.
  • Grumpy_chap
    Grumpy_chap Posts: 16,968 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    DE_612183 said:
    The OP has the settlement figure.  £12.5k
    The OP can obtain quotes from local VW dealer, WBAC, Motorway, Arnold Clark etc.  They will be quick and easy to obtain and give an indication of the car value and whether more or less than the settlement figure.
    If the route to sell is viable, then try to get the best possible sell price - local independent "we buy cars for cash" may better the larger national companies.  You won't know until you ask.
    I wonder whether that is the:

    Settlement Figure or
    Balance Outstanding

    They are two different things.

    The car cost 17221
    Part ex was ( just under 6k so lets 5800 for argument sake )

    Balance before payments: 11421

    After 10 payments of £200 - how can the settlement figure be £12.5?

    The balance might be if it includes all the interest - but not the settlement as you should get interest taken off even if you have to pay an early settlement fee.
    I took that £12.5k as the settlement figure based on what the OP had written.
    I may have read what was written incorrectly.
    It does seem from the figures you suggest that this is not the settlement figure (to repay in full today) but could be the total payable assuming the finance agreement runs full term.
    We both assume the OP is not in any arrears on this finance agreement.
  • Perhaps the OP got handed a cheque for some or all of the £6k?
    Northern Ireland club member No 382 :j
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