what do i do if we can not afford our car finance payments?

Question

i would like to know what to do as we can not afford to keep up our payments of £71 per week as our finacial situation has changed drastically,we are with a high apr finance company and we still owe them £9,560,and we have been paying 15 months now,my ideal situation would be to return the car and then get another car on finance but smaller payments and obviously a different finance company is this possible?,that being we could get excepted by any body else as we used to have a bad credit history but we have always payed this finance fine i am hoping that will go in our favour,could some one please help and tell me what my options are,or advice on who to call to give me the answers i am looking for

Answer 1

Hiya,
You are in a bit of a pickle, you must contact the lender of your loan and tell them your situation has changed, they may well take the car back and this could hopefully clear most of the finance, you might have to sort out any payment shortfall with them to keep your credit rating, this can be done over 3 years so it wont cost that much.
When your circumstances change try not to buy on high apr lenders, if you can afford say £71 a week when your working, you can save that much and buy a car outright in less than a year.hope this is of some help..kevin..

Answer 2

You could speak to the finance people and tell them your situation they may lower payments on a temp basis. As for your bad credit if you have defaults less than six years old they will still show on your report so you would still be in the same situation as to finance although you have paid this finance for 15 months it doesnt help your credit rating until you are free from defaults. The last thing the finance company want is to reposses the car so as i said talk to them. Hope this helps

Answer 3

Well, the first thing you need to do is find out how much the car you have is worth. there are 2 prices,, What we call bluebook here in the US and wholesale, which is what the dealers will pay each other and you for the vehicle. given that, and what you owe on the car, you can determine what is left over. figure out what APR you can get by calling the dealership where you bought your car from and asking to talk to the finance manager,, he/she should be able to give you a heads up on the APR you can get, and what amount of money you can borrow to get to your target monthly payment. take this amount of money, subtract the amount you will owe on the car after the trade in value, and the remaining amount is how much you can afford to spend on another car. The dealership will roll in the leftover amount into the new loan, but since you have already accounted for this in you calculations, you should be set. get a reliable (LOW MILLAGE!) car.

Answer 4

1. You could buy a used car. 2. You could lower your payments by taking a longer-term loan -- 5 years instead of 3 years, for example. 3. You could share a car with a friend or another family for a while, until you can afford to buy your own.

Finally, there is also public transportation.

Good luck.

Answer 5

Ask the finance company if they could refinance your car loan to make the payments more affordable for you. You can't just give the car back and expect to get another one. That would be a voluntarily repossession.

Answer 6

Speak to the finance company asap to see what they can do to help - often lenders will be willing to re-negotiate payments as it means they still get paid as opposed to possibly losing money through you defaulting.
Citizens Advice Bureau will be able to help you negotiate with them if you feel you are unable to do so on your own, or help you find a way of sorting out your situation.
Good luck, and hope everything else sorts itself out for you!

Answer 7

If the car is under HP you can't sell it. It belongs to the HP company and would be treated as theft. Make an appointment with the Citizens Advice Bureau as soon as possible. They will be able to sort something out and their service is totally free.

Answer 8

definite for the version between what you owed and what they offered the vehicle for. undergo in techniques that finance businesses and banks at the instant are not in the employer of merchandising vehicles. they could actual activity in mitigating YOUR loss on the vehicle. they're going to desire a court docket order to garnish your wages. And your credit profile would be destroyed - destiny very own loan purposes will comprise lots greater rates of activity. you may nicely be waiting to barter with them to refinance the steadiness to an prolonged-term. which will shrink your month-to-month money yet make greater suitable the pay off time plus fee added activity over the existence of the deepest loan. that would shield your credit, additionally.

Answer 9

Easy two step program to remedy your problem.

Step 1. Sell the car.

Step 2. Take the bus.

Answer 10

Go to the Citizens advice bureau they give great advice and it is free. Good luck