What should we do about our car??

Viking_Karen

Hi everyone - I really need some advice.

We have a car which was brand new 18 months ago. We want to change it because the monthly repayments are crippling, but it is worth less than we owe on it - the finance is with Honda.

We have to get our monthly outgoings down but as we are so tight for cash now I don;t think we would get a loan - so the option of getting a cheaper loan to pay off Honda isn't really an option - plus the Honda finance is actually at a very good rate.

What can we do?? It is causing a big strain at the moment at a time when I don't need the stress due to undergoing some medical treatment.

Please help...

VK

Merlot

Hi Viking Karen,

Can you post a SOA (incomings and outgoings) and a list of your debts to see if we can reduce your monthly outgoings.


Merlot.x.

Spendaholic_Chick

How long did you take the finance over? I'm not certain of the details, but a friend of mine just handed hers back to the finance company once she'd paid over half the finance off. She lost the money she'd paid (she just thought of it as rental money) but was left with no debt. I'm sure someone else here must know at which point you can do that.

GirlRacer_2

I had a car on finance a few years ago and when I went to part ex it it was worth less than what I owed on it and I managed to hand it back to the finance company under the halves or two thirds rule or something like that. They came to collect it and there was nothing else to pay.

Hopefully there'll be somebody along soon who'll know exactly what I'm talking about.

jillybobs

Hi, under most car finance agreements me you can voluntary terminate your agreement (VT) when you are over half way through your agreement and have paid a certain amount in finance repayments. I recently did this with mine. If you check on your agreement it should state all this information.

Hope you get something sorted out.

We've lost so much money in the past trading cars in and ending up with negative equity. I now lease one and its miles betters. You only have to insure the car as they tax it and you get a new car every year.

GirlRacer_2

Thanks jillybobs, I knew it was something like that!!!!!