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Unable to pay car finance (UK)

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#1 Daedroth

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Posted 17 September 2012 - 07:43

I have recently become unemployed and don't have enough savings to pay for the bills and car finance, nor do I qualify for job seekers allowance. I am 2 years in a 3 year loan but the car has front end damage to the bonet, front bumper, grill and also has a rear bumper crack. The engine has also developed a fault, meaning it won't start at all. I can't afford to get it looked at/diagnosed, let alone fixed.

I've heard about the hire purchase agreement, which is in my finance contract...will I be able to do that, given the state of the car?

I know I can ring them, but I want all the advice I can get, so I don't just get fobbed off by the finance company.


#2 Dan~

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Posted 17 September 2012 - 07:54

I thought if the vehicle is leased/loaned etc then the vehicle is theres, ie they do the servicing, fix any issues (apart from accidental damage etc)

I'd take this on the chin, possibly ask your mum+dad, then learn how to drive :p

#3 OP Daedroth

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Posted 17 September 2012 - 08:00

I thought if the vehicle is leased/loaned etc then the vehicle is theres, ie they do the servicing, fix any issues (apart from accidental damage etc)

I'd take this on the chin, possibly ask your mum+dad, then learn how to drive :p

The care of the car is under my control, such as MOT, servicing, tax, etc. But the car technically belongs to the finance company until I've paid off the last payment. I had an accident last year, but haven't been able to afford to fix the damage.

The problem I have, is that the cost to fix the car might be as much as the car is worth, and I simply cannot afford that.

#4 Haggis

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Posted 17 September 2012 - 08:02

So if it was an accident you had why are you not going through your insurance and having it fixed?

#5 +Nik L

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Posted 17 September 2012 - 08:17

Bingo - insurance is used to pay for accidents to your own vehicle that you cause, you claim off yourself.

#6 OP Daedroth

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Posted 17 September 2012 - 09:47

I had a high voluntary excess, which I couldn't afford to pay.

#7 Haggis

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Posted 17 September 2012 - 09:56

I assume you caused the accident then?

i would speak to Citizens Advice if i were you

#8 Detection

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Posted 17 September 2012 - 10:04

Not qualifying for Jobseekers would be because you either have Assets/Savings worth over a certain amount or a full time Income coming into the house you live in

So someone / Something you already have contact with should be able to help you ?

#9 goodbytes

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Posted 17 September 2012 - 10:05

I would ask them how much it would cost to pay off early, try to borrow the money off a family member, sell the car (even though you'll get much less due to damage) and then give the money to the family member to help pay off that debt.

DONT fall into arreas. Desperate for a nice car when i passed my test at age 18 i got one on finance but after a year started to struggle, i ended up up having it voluntarily repossessed because i couldn't afford to get the account up to date.. they auctioned the car, sold it for significantly less than it was worth... now they are chasing me for the 'outstanding amount' on my account.. a nice total of £3400.. the car was only £5000, i may have been nieve because i thought once they took the car it would all be over, you can imagine the shock when i got a letter 6 months later saying i owe over £3400. If i thought this would happen i would have never given up the car.

The whole episode ruined me for a very long time, i fell deeper into debt with loans and overdrafts and i've only recently recovered the last couple of years. never again.

#10 Haggis

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Posted 17 September 2012 - 10:15

You wont get job seekers if you were sacked or left the job on your own

lots of reasons

#11 Detection

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Posted 17 September 2012 - 10:17

You wont get job seekers if you were sacked or left the job on your own

lots of reasons


Well yea, you`ll have an 8 week stop on any money if you quit or get sacked but you`ll still qualify, OP said he didn't qualify :)

#12 +zhiVago

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Posted 17 September 2012 - 10:26

Hey, man!

There are a few things you can do.

The worst thing is to do nothing, prolong this situation, and have your credit rating ruined.

And to go further, I need to have some things clarified.

I assume it's a financed car and not a lease. Correct? If it is so, who is its owner on the title? Is it you or the financing company?

#13 OP Daedroth

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Posted 17 September 2012 - 19:25

I know how much it will cost to settle the agreement early, but can't afford to pay that.

My parnter works full time, but doesn't earn enough to support both of us.

The finance company own the car until I've paid off all the finance.

I'm not eligable for job seekers as I haven't paid enough NI between 2009 and 2011 apparently, which is stupid because 2009 to 2010 I was claiming job seekers while working 8 hours a week, after graduating from college. Since 2010 to 2012, I have 2 years of full time work, where I paid my full NI. But they won't count the 2012 year for some stupid reason. Something which I'm going to protest.

The accident which caused the front end damage was my fault, something which I obviously regret, but the excess on my insurance was too high for me to afford it at the time.

#14 iKenndac

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Posted 17 September 2012 - 19:33

I gotta be honest - I think you need to suck it up and talk to the finance company. The longer you leave it, the less friendly they'll be to the idea of helping you out. Quite often they'll let you temporarily pause or reduce payments while you get back on track.

#15 Hardcore Til I Die

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Posted 17 September 2012 - 19:33

I had a high voluntary excess, which I couldn't afford to pay.


I know you don't want to be lectured, but you should always make sure you can afford the excess. It might seem like a good idea to choose a high excess to get your monthly payments down, but it all goes to pot when an accident actually happens.

That said, I would go to the Citizen's advice and see what they think you should do. They might be able to help you write a letter to the finance company explaining the problems you're having. They deal with this sort of thing all the time.