Bought car on finance and can't afford payments

[whiteley]

Earlier in the year I bought a car on finance but have recently lost my job and cannot afford the repayments. What will happen apart from losing my car? Can anyone help?

[dizzy_chick]

Hi

 

Get some advice from the CAB. You may be able to speak to the finance company about this but I am not sure how sympathetic they will be.

 

If you miss payments or into an arrangement with them I am pretty certain it will impact your credit rating.

 

You could try selling the car and reducing most of the debt that way. I would imagine you would still owe them some money as cars depreciate in value.

 

Get some advice first!

 

Good luck. You have to swallow your pride a bit which is hard but once people know you have problems it should get easier.

[Acrow]

Earlier in the year I bought a car on finance but have recently lost my job and cannot afford the repayments. What will happen apart from losing my car? Can anyone help?

 

Dodn't the finance company make you insure yourself against losing your job, they usually don't miss that little moneymaking scheme

[sTaGeWaLkEr]

Like a previous poster suggested, I would talk to the Citizens Advice Bureau.

 

They will look at all the facts, not just the basics. There are many potential implications to returning a car on credit (if that's what you intend to do)

 

CAB will help you make an informed decision that is suitable for your circumstances.

 

Good luck!

 

[Lindseyw]

If you have a look in the small print, there is usually a cluse that states you can give it back and walk away. Check with the Funder.

[Magilla]

Dodn't the finance company make you insure yourself against losing your job, they usually don't miss that little moneymaking scheme

 

Indeed.

 

As for selling the car, you can't because you don't own it. The finance comany owns it until you've paid it off.

 

Only thing you can do it tell them what's happened and see what they suggest, like Acrow mentions, you may have cover? Possibly a good idea to get independant advice aswell, finance houses ain't noted for their honesty.

[yummyyumyum]

Dodn't the finance company make you insure yourself against losing your job, they usually don't miss that little moneymaking scheme

when we got a car on finance a few years ago we were kind of forced to take out other insurances which included payment protection.

if the OP lost their job through illness (not mental illness, although is an illness in itself so why not im not sure) or redundency then this insurance would cover the payments with immediate effect. they should actually backdate the payments too when they recieve proof of job loss.

 

if you dont have insurance to cover lob loss and dont keep up repayments, depending how long you have had the car they can reposses the car and still charge you an amount on the car. if you havent had the car long then it will be quite a large amount of original loan

[Lindseyw]

where was the car from or more importantly who is the funding company ?

[Thunzi]

If you have a look in the small print, there is usually a cluse that states you can give it back and walk away. Check with the Funder.

That is normally only applicable when over half of the loan has been paid off. Definitely worth checking out though.

[fox20thc]

I agree, most finance companies insist you take out Payment Protection, and usually only mention it in passing when taking you through the contract.

 

Have a look and see if PP is included in the finance agreement, its should be listed seperately to the car.