car finance arrears - help!!

Mistymat123

Hey, dont know if anyone can help me please. I have an Audi q2 which I have fallen behind on payments with vwfs - ive missed a total of 10 payments from since march last year due to changes in circumstances. Ive had the car since feb 2022 and contract ends march 2026 

Im currently working with step change to get my debts sorted and they have said to get in contact with vwfs to set up a payment plan. 

I tried to do this today and he said we cant set one up as from your budget its not affordable - he said you need to go with one of the 3 options - sell car private & give the money - part exchange car ( I wouldn't get another with my credit score) or voluntary termination - what do I do??

I would have obviously preferred to keep the car as im not going to be able to get another car with my credit score - does anyone have any advice please 

Also how long before they just come and recover the car as he said you need to get this sorted asap -

- thanks 

enthusiasticsaver

Difficult to say without figures but if they do come and recover it there will be extra costs so I agree you should get it sorted.  You need to know the balance of the loan outstanding and the value of the car were you to sell it privately.  I am guessing though if you are 10 months in arrears and still a year away from the end of the contract (presumably with a balloon payment at the end?) the loan will be higher than the car value.  In those circumstances I would be opting for voluntary termination but that does leave you without a car.  I think I would have been tempted to sort the car loan before the DMP.  If you don't pay towards the debts can you afford the car payment? 

Mistymat123

HI thank you so much for your reply, settlement figure is Settlement figure valid until 29/05/2025 - £16,546.41
Voluntary termination figure – £0.00 plus arrears of £3,213.40.

Yes he said yday there is a balloon payment at the end so next march so the arrears needs to be cleared by then 

molerat

Have you looked at WBAC and the likes for a value ?

Mistymat123

molerat said:

Have you looked at WBAC and the likes for a value ?

yes I have car wow said £16,443 and wbac said £14,660 

ManyWays

What are StepChange saying you will pay a month in a DMP? 

Is a car essential to you? If not, you will not just be saving on the car payments but also insurance, road tax, servicing etc. 

I have car wow said £16,443 and wbac said £14,660
So the car wow figure is very close to the settlement value. 

Mistymat123

Stepchange didn't offer me a DMP they only offered me a TPP as they said I dont have enough as im only working part time (im currently off work sick due to my mental health because of the debts I have) 

Yes id be lost without a car tbh 

yes the Carwow figure is close the the settlement value ive never heard of them before though will look more into them today