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Moneybarn Car Finance

I bought a car with moneybarn paying £388 a month. To be honest I didnt realise how much the APR was. The car was massivley overpriced. I have since sent the car back as I fell behind with payments and couldn't afford the monthly amount. This was after bout 2 years. They have since sold the car at auction at about £3-4000 under priced. They have sent me a letter saying that I still owe £12500 but can pay £8500 now if paid in full. I can't afford wither amount. Does anyone have any advice of what I can do? I believe that most of what is left was the massive amounts of interest they loaded on. Many thanks in advance

Comments

  • fatbelly
    fatbelly Posts: 23,099 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    It's just a nonpriority debt.

    You might have others.

    Head over to debt free wannabe and give us the full picture.

    A loan isn't going to be the answer.
  • Nasqueron
    Nasqueron Posts: 10,878 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    An instalment plan is likely to be the way you will have to go, with a budget to show what you can afford

    The APR was on the agreement you signed, as was the total payment so they won't have any reason to cancel it

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • secla
    secla Posts: 361 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    moneybarn is a subprime lender so there interest rates are always going to be higher.

    Do you still have the contract ? If so make sure all the details etc. are in there and correct.
    Id imagine there will be a surrender policy in there somewhere but if they sold at auction to recoup the debt still owed you still owe the outstanding amount. The debt wouldn't just get wiped out because you decided to hand car back
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you surrender the car to go to auction then it is always going to fetch way less than you would get as a trade in or private sale.
    This is not mis-selling: the high APR was transparent.
    No free lunch, and no free laptop ;)
  • ManyWays
    ManyWays Posts: 1,461 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    If you think the monthly repayments were too high to be manageable from the start, then you could look at an affordability complaint as if you win one you may get the remaining balance written off,
  • CouldntResist
    CouldntResist Posts: 97 Forumite
    10 Posts Name Dropper
    edited 25 March 2024 at 2:05PM
    Then avoid borrowing money in future as you might find that using free cash only makes you question more critically whether the items you are buying are overpriced or not (not sure why you mention that though, the fact you paid over the odds for something is neither here nor there when discussing a loan you can't afford)
  • Hi I know this is an old post but curious to find out what happened did you set up a plan or what? Thank you
  • CliveOfIndia
    CliveOfIndia Posts: 2,572 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Hi I know this is an old post but curious to find out what happened did you set up a plan or what? Thank you
    Given that the OP hasn't returned here since making their one and only post over a year ago, i wouldn't hold your breath for an answer.

  • Hi there, Obviously I have buried my head regarding this and have done nothing about it. The stage I am at is I have now received a 'Letter of claim' from Kearns Solicitors for £12,805.40. How do I respond to this letter? Do I admit the and say I owe it? I was missold it from the start and the payments were obviously too high, tried to keep paying them but got too much. Can I put some kind of affordability complaint in? I have complained to the Ombudsman but they have said too much time has elapsed. Some good advice it need please.Thanks  
  • fatbelly
    fatbelly Posts: 23,099 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 30 July at 3:27PM
    How to reply to a letter of claim

    https://debtcamel.co.uk/letter-before-claim-ccj/

    Earlier advice still stands - head over to debt free wannabe and give us the full picture
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