Car finance..

[alperchino]

Hate to be having to ask a question like this, never thought I'd have too really, I'll keep it short, had my car around 9 months and I can't afford it, lost my job sadly, I don't mind my credit rating being wrecked at all, but don't know what to do with the car? Because I just don't want to run up debt by not paying for it when I know I can't afford it, cheers guys..

[rowanwitch]

If it was new I could only suggest selling it for as much as you can get clearing as much of the loan as possible then asking for time to pay the outstanding amount... better than a repo...

[bednobs]

is it a personal loan for the car or a finance agreement specifically for the car? Either way, you need to contact the creditors (people that gave you the money for it) and speak with them about the problems you're having

[EvianBaby]

Rowan, I'm sure you're not allowed to sell a car that's on finance.

[rowanwitch]

I didn't know that... sorry for the duff info

[EvianBaby]

Well, I suppose you could if the person buying was aware and that they would pay enough to cover the outstanding amount due which you would then use to immediately pay off but the chances of that happening are slim.

[Celticv11]

You can sell a car that is on finance, the purchaser must be made aware of this and must pay the balance, the final figure direct to the finance company otherwise the car remains their property

[EvianBaby]

Apologies for my first incorrect answer then.

Although I stand by my second, the chances of the buyer paying enough to cover remaining finance (including interest and any early repayment charges are slim)

[Celticv11]

I only say this because a friend of mine works for webuyanycar.com and they buy cars that have outstanding finance, they check with the finance company and settle with them giving the difference to the seller, if any, often not very much

[EvianBaby]

I'm amazed there would be any left over to give to the seller.

I considered doing the same thing with my car last year.

[tonywiltshire]

It depends entirely on how you abtained the finance; the two most common for the purchase of a vehicle are hire purchase or a personal loan.
Hire purchase agreements are regulated up to quite a high amount under the consumer credit act. The goods remain the property of the hirer not the client until the end of the agreement and the vehicle should not be sold without the agreement of the hirer. If you have not missed any payments and have paid at least half the amount of the total purchase price as stated on the agreement you may return the vehicle to the hirer and have nothing further to pay, give written notice to the hirer who may put obstacles in your way and challenge your right to end the agreement, this is not correct and your right to end the agreement is unconditional. If you default on payments and have not reached a third of the total amount the hirer can repossess the vehicle without a court order, over one third the hirer must obtain your permission or go to court.

A personal loan at a fixed or variable rate of interest is again regulated up to a high level by the consumer credit act and are usually over a set number of years. If you have a personal loan and have other debts seek specialist advice.