The start of default road

DD1A

I don’t think VT can be done according to that link, I’m sure it says it’s not an option of a payment has be missed. It was missed nearly 2 week ago but I plan to call up in a few days to bring it back in line.
I done a quote on Motorway and it’s short of roughly £1200 to the settlement figure.
I’ve since put it up for sale on the market but Xmas being close it’s going to be a hard time to sell I imagine.

stu12345_2

I've sold a car with car wow, motorway and we buy any car. all the cars were 3 years into a 4 year HP agreement. I ended up with  positive equity and with the cash I got after the debt was settled I bought a cheap run around car.

I assume it's an HP and not PCP as PCP it takes longer to build up positive equity, usually only in last few months of the deal as your simply leasing the car and only paying the interest per month and not really the outstanding capital on the car

many years ago I did a VT on a car,as long as I was halfway through the repayments I could hand it back.this was an HP agreement. I was actually more than halfway.so I handed it back.but I didn't get any cash ,even though I was beyond the halfway stage,that happens in a VT.

if you try to sell car private,you have to state it has finance on it to the buyer,and as long as the buyer send the money to the HP company,then that's fine. but many will walk away if they find out it has finance on it.thsts why I used motorway, but carwow worked out best for me.

DD1A

stu12345_2 said:

I've sold a car with car wow, motorway and we buy any car. all the cars were 3 years into a 4 year HP agreement. I ended up with  positive equity and with the cash I got after the debt was settled I bought a cheap run around car.

I assume it's an HP and not PCP as PCP it takes longer to build up positive equity, usually only in last few months of the deal as your simply leasing the car and only paying the interest per month and not really the outstanding capital on the car

many years ago I did a VT on a car,as long as I was halfway through the repayments I could hand it back.this was an HP agreement. I was actually more than halfway.so I handed it back.but I didn't get any cash ,even though I was beyond the halfway stage,that happens in a VT.

if you try to sell car private,you have to state it has finance on it to the buyer,and as long as the buyer send the money to the HP company,then that's fine. but many will walk away if they find out it has finance on it.thsts why I used motorway, but carwow worked out best for me.

I’ve had it 2 years next month and from memory without checking it was a 4 or 5 year hp contract.
I requested a settlement figure and it’s currently £12,763.00
I’m getting quoted by motorway roughly £11,850.
I don’t currently have a grand to pay the excess.
When I call up in the next few days to bring my payments up to date is it worth asking them about voluntary termination?

stu12345_2

VT only if your 50% into the repayments and the car must be in good order ,eg 3 or  6 months MOT,  no dents,I think,but you have to check the rules..
as I did a VT 20 years ago and had arguement cos my car had only a month's MOT,I think I won,cos finance company saying oh it must have long not,think they were lying .
before you hand it back.
or you sell it to motorway and add the difference only when you can get the early  settlement figure from your finance company.
 motorway will prob knock some money  off it when they see it. we buy any car did.but car wow and motorway were better to deal with.

you have to do the sums and make sure you have a grand if your selling it to motorway to make sure all the debt is cleared.

selling it and ending the hp is better for credit file.thsn doing a VT. car finance companies hate VT cos they lose
but it's in the law to help folk get out of debt.
if you leave it longer than 50% then the car finance company starts to win ,cos you get no refund,even if you are over the 50% mark


I sold my cars during COVID when there were no new cars available and microchips were in short supply,so I got an excellent price
 cars are still overvalued, especially small autos
VT works best if car values are low,cos it don't matter,as long as your 50% into the repayments ,cos the cars secondhand value does not come into it.
that's the finance companies worry after you have got shot of it back to them.

if you are still in negative equity and at halfway point, I'd do a VT. rather than keep paying to try and sell it later via motorway and having to find the grand.
so you must find out if you are 2 years into a 4 year deal,not a 5 year deal.ss 5 year deals are very rare 

DD1A

stu12345_2 said:

VT only if your 50% into the repayments and the car must be in good order ,eg 3 or  6 months MOT,  no dents,I think,but you have to check the rules..
as I did a VT 20 years ago and had arguement cos my car had only a month's MOT,I think I won,cos finance company saying oh it must have long not,think they were lying .
before you hand it back.
or you sell it to motorway and add the difference only when you can get the early  settlement figure from your finance company.
 motorway will prob knock some money  off it when they see it. we buy any car did.but car wow and motorway were better to deal with.

you have to do the sums and make sure you have a grand if your selling it to motorway to make sure all the debt is cleared.

selling it and ending the hp is better for credit file.thsn doing a VT. car finance companies hate VT cos they lose
but it's in the law to help folk get out of debt.
if you leave it longer than 50% then the car finance company starts to win ,cos you get no refund,even if you are over the 50% mark


I sold my cars during COVID when there were no new cars available and microchips were in short supply,so I got an excellent price
 cars are still overvalued, especially small autos
VT works best if car values are low,cos it don't matter,as long as your 50% into the repayments ,cos the cars secondhand value does not come into it.
that's the finance companies worry after you have got shot of it back to them.

if you are still in negative equity and at halfway point, I'd do a VT. rather than keep paying to try and sell it later via motorway and having to find the grand.
so you must find out if you are 2 years into a 4 year deal,not a 5 year deal.ss 5 year deals are very rare 

I just checked the agreement and it is in fact 60 months.
 Only way through this is sell privately.
I did this with my previous car, guy came along and was happy to transfer me the funds then I immediately paid the finance off. I actually made a few hundred quid on the sale. WBAC offer was ridiculous was no where near what was owed.

 I’ll list it for near to the settlement figure. This value compared to the current market value makes it a very good price so hopefully luck will be on my side fingers crossed.

stu12345_2

as long as. the buyer does a finance check and transfers the money to the finance company  to clear it and then gives you any left over in cash profit.

5 yr deals are rare,never go beyond 4 imo,and try do a 3 if possible.
at least you never did PCP deal.

when I used car wow,you could see all the bids coming in from dealers I sold it in 48 hrs. guy came, checked car over,phoned his dealer, money went into  the car finance in minutes, plus I had money left over£2000 in equity.

webuyany car are bad made me wait out  in the rain at their office,guy took £250 of each alloy for a scratch!! I told him it's £50 to repair the alloys,he didn't care.

5 yr deals are almost unheard of,I assume ,you put down little deposit.

you could list your car higher than settlement figure, cos you will get haggled down,get a year's mot and use say autotrader. not Facebook marketplace, cos that's junk cars.

DD1A

The phone calls from the PRA Group have started. I have not answered any calls yet.
checked my credit file and both MBNA and Barclaycard are now both in default.
Do I just continue to ignore any communication with DCA regarding the accounts? When do I start to engage and who do I start to communicate with as the last thing I want is court orders and anything of this similar level approaching my door either mail or in person.

Many thanks 

fatbelly

Ideally start your debt management plan once they have all defaulted. Until then continue to save into your emergency fund.

If you get a statutory preaction letter with 30 day reply form then you do have to engage but you're unlikely to get one for several years

DD1A

fatbelly said:

Ideally start your debt management plan once they have all defaulted. Until then continue to save into your emergency fund.

If you get a statutory preaction letter with 30 day reply form then you do have to engage but you're unlikely to get one for several years

These are the only 2 Cc I have and both defaulted now.
All my other outgoings like mortgage, utility bills etc I can manage to cover these expenditures.

Do you recommend I block the numbers from my phone so they can’t reach me or just let them ring?

fatbelly

If they annoy you, and you have that facility, block the numbers.