options... help please

[Ibizahoo2]

I bought a car on finance about 6 months ago and im paaying around 250 a month for it. however, my parents are basically changing the rules to try and force me move out so my priorities have changed so i need more money.

is there anyway I can get rid of the car without getting blacklisted or setting the thing on fire!

another option i thought of is the possibility of re financing a cheaper car to halve the payments, but then im not sure if this is actually possible. can i trade mine in against a slightly older, lower spec motor car?

any help would be gratefully appreciated,

ETA, i did advertise the car for sale on here saying finance was outstanding but i didnt get one call all month

[tomsugden]

Is the car currently worth more than the outstanding finance? One option is to sell the car and clear the finance. Alternatively if you are more than half way through the term of the finance you can hand it back to the finance company, and walk away. This is only worth doing if the value of the car is less than the outstanding finance.

[Ibizahoo2]

no ive got about 500 quid of postive equity, im literally about 15% of the way through the agreement, so the handing back isnt an option??

[mnkiboy]

If you're only 6 months in to the finance agreement I guess the car is worth much less than the outstanding finance.

How on earth were you going to sell it privately if you weren't able to pay off the finance with the funds?

Unless the car IS worth more than the outstanding finance (you may have paid a large deposit) in which case there's the answer to your problem.

[andy-xr]

Work out your living costs first, is there a cheap houseshare or mate you can rent a room off to keep costs down before thinking about the car. If it's a simple cash-flow problem, is there a way you can earn more money through another job that'll put something towards the cost of the car.

It'll hurt to try and get rid of the car now, but if it's the best option then speak to the finance company first before you look to sell, see if they can help out anywhere

[Ibizahoo2]

andy-xr said:

Work out your living costs first, is there a cheap houseshare or mate you can rent a room off to keep costs down before thinking about the car. If it's a simple cash-flow problem, is there a way you can earn more money through another job that'll put something towards the cost of the car.

It'll hurt to try and get rid of the car now, but if it's the best option then speak to the finance company first before you look to sell, see if they can help out anywhere

ive worked out with a few mates i need about 550 a month to move out into a househare with em and live comfortably, i currently hav about 300 spare, so you see the dilemma.

with regard to the car being worth more than the car, I got a heavy discount when buying and apparently its depreciating at about 20 quid less than im paying a month?

[pops and bangs]

Ibizahoo2 said:

no ive got about 500 quid of postive equity, im literally about 15% of the way through the agreement, so the handing back isnt an option??

If you've really got positive equity then just trade the car in.

The dealer would settle the finance and you would use the 500 quid positive equity towards a deposit and then re-finance the new car.

I'm surprised that you've actually got positive equity after only 6 months though.

[paintman]

Tried advertising it on the normal 'cars for sale' formats - Autotrader etc?
Binning the gym membership & forgetting the bike might save you a few ££ as well.

Edited by paintman on Tuesday 6th September 11:51

[Ibizahoo2]

paintman said:

Tried advertising it on the normal 'cars for sale' formats - Autotrader etc?
Binning the gym membership & forgetting the bike might save you a few ££ as well.

Edited by paintman on Tuesday 6th September 11:51

yeah but id rather not sacrifice going to they gym etc after 8 months trying really hard to get to the point im at now.

[GreatGranny]

Firstly get a trade in value at the dealer, then you know exactly how much it is worth to them not how much you think its worth.
Looking at your finances it looks like you need to save all of the £250 per month to be able to live away from home so your options are limited.
Sell car, clear finance and next time buy within your means.

(But looking at your previous posts you bought the Seat on finance and had clear it to buy the Skoda my advice may just be ignored)

[smashing]

Ibizahoo2 said:

yeah but id rather not sacrifice going to they gym etc after 8 months trying really hard to get to the point im at now.

Sometimes you gotta do stuff you don't like or want to do....this is the exact reason I’m scared of getting something on finance lol


plus I would rather move out than have a flashy car

[mnkiboy]

GreatGranny said:

(But looking at your previous posts you bought the Seat on finance and had clear it to buy the Skoda my advice may just be ignored)

Hmm it does seem you asked this same question 6 months ago, and have got yourself in to the exact same situation again, only this time with a larger amount of money.
At a guess your parents are thinking you're spending all this money on cars and not doing any planning for the future. Looks like they're trying to give you some tough love by forcing you to move out and realise there's more to life than cars.

[Devil2575]

When you say you only have £300 a month spare, what elese are you spending your money on, excluding the car?

Go through all of your outgoings and cut back on the luxury items hard.

If you're living at home I'm guessing that you can't have many real financial responsibilites unless you have gone mad on finance etc.

[LuS1fer]

You could get an unsecured personal loan at a lower rate of finance and pay off the finace owed less any discount for early settlement THEN sell the car free of finance.

The hard bit will be getting the unsecured personal loan.

[anonymous-user]

Are you selling it because you got 'owned' by a Golf GTI on the motorway the other day?

[Ibizahoo2]

basically, update,

im now in negative equity, im contemplating handing the car back, taking a bank loan of about 3.5k over 2 years to pay neg equity and pick up a diesel run around. works out about 150 a month cheaper.. is this possible? and will it affect my credit rating?

[Devilstreak]

Finance to cover finance. Downward spiral no?

[Snowboy]

£250 a month.
How long is the finance for? 36 months? 24?
How much is left to pay?

If you want to get rid of the car then you're just going to have to sell it for the best you can get, then save up and pay of the extra finance.
Your bank may be able to offer you a short term loan to cover the gap.
It's not a bad idea, but it might cost you a bit more in the short term.

Or
You keep the car and you adjust the other areas of your life.

Or
You talk to your parents.
I'm not sure what rules they have changed, but it sounds like you've been freeloading a bit and they've started to ask for some sort of rent of bills off you.

It's fair enough, I freeloaded off my parents for a while, I'm sure my kids will do it to me. It's just the way it goes.
You freeload when you're young, and when you grow up and get a decent income you pay them back with extravagant Christmas presents.

£250 a month on finance seems to quite a lot of money for a chap in your situation.

[vit4]

Not really any help but this is why I'd rather run a £300 banger than get a car on finance.

Sincerely hope everything sorts out for you mate, money problems are st.

[Ibizahoo2]

Snowboy said:

£250 a month.
How long is the finance for? 36 months? 24?
How much is left to pay?

If you want to get rid of the car then you're just going to have to sell it for the best you can get, then save up and pay of the extra finance.
Your bank may be able to offer you a short term loan to cover the gap.
It's not a bad idea, but it might cost you a bit more in the short term.

Or
You keep the car and you adjust the other areas of your life.

Or
You talk to your parents.
I'm not sure what rules they have changed, but it sounds like you've been freeloading a bit and they've started to ask for some sort of rent of bills off you.

It's fair enough, I freeloaded off my parents for a while, I'm sure my kids will do it to me. It's just the way it goes.
You freeload when you're young, and when you grow up and get a decent income you pay them back with extravagant Christmas presents.

£250 a month on finance seems to quite a lot of money for a chap in your situation.

erm i resent that comment, in no way have i been freeloading off my parents, I havent borrowed a penny from them in 3 years and have been paying them 50 pounnds a week rent. my problem is im far too impulisve and i decided I could afford a new car. now i realise im at the age where other priorities are higher and need to get rid of it.