Car finance mess

Grumpelstiltskin

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MEM62

Teaandbiscuits21 said:

I’ve paid 10k off it already and the car wasn’t even worth that when I got it!

A common situation with car finance.  The cars value falls like a stone giving an almost instant negative equity situation and you make the situation worse by adding interest onto the overall purchase cost. 

Teaandbiscuits21 said:

DrEskimo said:

Have you tried quotes from any where else other than WBAC? Local garages, local dealers, etc.?

If you can get to the settlement figure that would be easiest route, but do you still need a car? If so what are your plans for a replacement?

I do still need a car which is what’s making it tricky. I’m not sure I’ll get finance again? Already a poor credit score. 

And the way you have worded this suggests that you are automatically linking you next car purchase with financing it.  You are creating the same situation all over again.  You need to try and save a little and buy something that you can afford to pay for outright.  Driving an older cheaper car is far better than having the financial problems that comes from more borrowing. 

I hope that you manage to find a solution to you current predicament.  As already mentioned, even if the finance company repossess the car you will still be liable for any negative equity so anything you can do to limit that is to your advantage. It might not be the worse course of action to just ask them to come and collect it.      
  

ManyWays

That is a TransUnion data report. 

EssexHebridean

whatever else you do, prioritise in getting sorted with the Council tax above all other payments to unsecured debt. That is a priority.

Going forwards, go back over your budget and check that everything is correct (you should be doing this once increased amounts for the new tax year are known in any event) and make sure that the Council tax is prioritised as a payment directly after your rent or mortgage. 

Andyjflet

Teaandbiscuits21 said:

Andyjflet said:

I'm in the car finance business. Have you tried Motorway, at the moment they are usually showing the best prices. But better to take a small loan to cover the £1000 difference?

Last thing the finance company want to do is chance it at auction, it costs a few quid and rarely a good result for anyone. 

I’ll have a look on that one. The small loan could be an option to cover the rest.

So the thing is I actually do need a car but in a pickle with this one and would pleased to get rid of it now, however paying it off myself doesn’t seem to be an option. What will happen say if I did nothing by august when the 60 month term is up?

id like to take out car finance again as I need a car and this will be the only way as can’t buy outright. Will I find it difficult now? Finance company haven’t put nothing on my credit report as of yet , will they?

Sorry for the tardy response. is the 60 months up this year? if so then that would have been HP, not many PCP over 48months? if its Conditional Sale HP then the car is yours at the end of the term with the option to purchase fee paid. Who is the finance with?

Teaandbiscuits21

Andyjflet said:

Teaandbiscuits21 said:

Andyjflet said:

I'm in the car finance business. Have you tried Motorway, at the moment they are usually showing the best prices. But better to take a small loan to cover the £1000 difference?

Last thing the finance company want to do is chance it at auction, it costs a few quid and rarely a good result for anyone. 

I’ll have a look on that one. The small loan could be an option to cover the rest.

So the thing is I actually do need a car but in a pickle with this one and would pleased to get rid of it now, however paying it off myself doesn’t seem to be an option. What will happen say if I did nothing by august when the 60 month term is up?

id like to take out car finance again as I need a car and this will be the only way as can’t buy outright. Will I find it difficult now? Finance company haven’t put nothing on my credit report as of yet , will they?

Sorry for the tardy response. is the 60 months up this year? if so then that would have been HP, not many PCP over 48months? if its Conditional Sale HP then the car is yours at the end of the term with the option to purchase fee paid. Who is the finance with?

Yeah conditional sale it’s up in August, money barn it is with 
thanks 

Andyjflet

My advice at this stage would be to refinance the balance with the lender to an agreed amount. If you dont have the money then they could apply to take the car but I assure you they wont want to as it costs too much money to process. 

Teaandbiscuits21

Andyjflet said:

My advice at this stage would be to refinance the balance with the lender to an agreed amount. If you dont have the money then they could apply to take the car but I assure you they wont want to as it costs too much money to process. 

Thanks I didn’t realise this would be an option, how does this work, would they agree to
this?

Teaandbiscuits21

Bump
……… 

Andyjflet

Teaandbiscuits21 said:

Andyjflet said:

My advice at this stage would be to refinance the balance with the lender to an agreed amount. If you dont have the money then they could apply to take the car but I assure you they wont want to as it costs too much money to process. 

Thanks I didn’t realise this would be an option, how does this work, would they agree to
this?

Call them, issue is I guess your score may have dropped and it would be a new credit search, but usually its an option yes.