Advice Needed on Car Finance while unemployed

dianem_4

I am looking for a bit of advice with regards to my car finance Over the agreement i have missed a few payments due to a number of reasons but predominately because i was out of work at the time and could not afford the repayments.

However, payments have been made more than not and in total i may have only missed 4 or 5 in 2 years.

I am now once again unemployed and within the next week another £200 is due to be deducted from my bank account. The money for this can be provided by a friend but then i am getting into more debt with personal friends which i am reluctant to do.

Should i ring them and explain my situation and offer a minimum payment which is affordable and comfortable to my situation. If they are not sympathetic how should i proceed.

Any advice or help gratefully appreciated.

D

guyrulius

Talk to them at the earliest opportunity, explain what is going on and offer to make a token payment as much as you reasonably can in the circumstances.

They may get aggressive but water off a duck's back. They get even more upset if you let a dd slide and they have to chase it up.

Can you offer them £50?

It's not in their interest to let it get out of hand and when you're back in work you can reschedule the payments.

Good luck.

inmypocketnottheirs

Check the original agreement. If the vehicle is on Hire Purchase (HP) then you may be able to do a Voluntary Termination if you have paid at least half of the amount of the finance.

standupguy

Your way forward and best advice will depend on a number of things

1. What is the value of your car? Otherwise make, model, mileage and year of registration?
2. What are the chances of getting employment and how soon?
3. Do you want to keep the car if you can?
4. Are you up to date with your payments now and if not how many months behind?
5. What is the amount (on your HP agreement) that is one half the hire purchase price? - You will find this under your termination rights
6. How much deposit did you put down and how many months payments have you made and what was the monthly amount?
7. What is the one third HP price - (again you will find this on your agreement).

The above information will enable us to see if the company can repossess your car without a court order or what your liability may be if you voluntary terminated the agreement.

Of course, if you have paid over a third of the HP price and you think you will be back in work soon then make a temporary arrangement with them, as others have stated.