car finance

juliag

Hi Just to see if anyone can help, my husband recently had well paid job with good car allowance and on the back of this bought brand new Audi A2,then was made redundent,however got another job within 24 hours but less pay. no car allowance but new company car provided,so paid 16000 for car that is no longer wanted or affordable. the Audi garage doesnt want to know even to have it on forecourt to sell it again for us, we now owe about 9500 on it and have it on our local garage forecourt for sale at 9000, the monthly cost is about 250 a month,which we cant pay. what does anybody suggest we have large other debts and loans is it best to have car reposessed ? anybody want to buy a tried to sell it for about 3 months but no takers any advice please now desperate

Stonk

Deliberately letting it be repossessed is an option since you owe more than it's worth, but it will probably cost you fees, and will certainly damage your credit rating.

If the negative equity is £500 (assuming it will sell at £9,000), I don't think you should do it. In the long run (and maybe the short run) it will cost you more. I think you have to accept the loss - annoying, but this is inherent when buying a depreciating item.

juliag

thanks for replying, no problem accepting less money would accept a lot less just to get rid of it, the problem has been selling it for any amount no one seems to want it , lovely car and immaculate but can get cheaper brand new cars out there

Jamer

Hi there,

Hmm. I'm rubbish at maths so bear with me.

When did you buy the car? Over what term was the finance? And how much of that term have you covered? (In other words, how long have you been paying the finance for?) Also, was the finance taken through Audi Finance?

I only ask because your car's list price is £16k. You owe £9k. It could be that you're close enough to the 50% marker to make up the difference yourself. And when you get there you can just hand the car back no questions asked. - It's a clause in finance agreements that let's people get out of them after paying half of the finance. (You may know all of this already).

Forget talking to the Audi garage, they'll be useless and offer you a derisory price for the car.

What are the details on the finance???

James

juliag

thanks this could be really useful and no we didnt know any of it going to find out all details now had car for 1 year bought through audi finance this one could save us on this

Jamer

Nice one. You need to read the bits of paper relating to your finance very carefully. It's good news you're with Audi Finance because it's much easier offloading a car to a specialist.

So, on the paperwork somewhere will probably be (in small print) something along the lines of "you're entitled to terminate the agreement upon the payment of such and such, representing 50% of the full figure (blah, blah, blah).

Your situation will depend on whether you've got 3 or 5 year finance.

When I got rid of my car earlier this year (doing exactly as above) I hadn't quite reached 50% but Renault agreed to take the money upfront (I gave them a month's worth of money) and they just came and picked up the car.

The question is, can you hang on long enough to reach that 50% point... (or are you there already)

juliag

just rung husband at work, will dig out paperwork tonight, and read it carefully, you have been a star thank you so much will let you know this evening how we get on thanks again

juliag

:beer: just rung husband at work, will dig out paperwork tonight, and read it carefully, you have been a star thank you so much will let you know this evening how we get on thanks again

juliag

thanks you have been a star will dig out paperwork tonight and let you know how we get on . thanks julia

juliag

computer went a bit mad , note the above