car has negative equity - options

[garos]

Ok looking for some ideas as to what are the options available when you sell a car that has more owing on it than its worth.


I do not want this to turn into a " can't afford it, shouldn't of bought it thread".

Truth is circumstances change and I might need to reduce my payments

for the car each month by half to 150 quid. Car has 14k owing probably 2 more than I get private and 3+ more than I might get on trade, although that's me just thinking aloud.

What do folk do in this situation, please no save up quips

[Xeno]

Can you put the difference on a credit card?

[fadeaway]

think we need more details about how you financed the car. Eg is it on HP, a car loan or an unsecured loan? Are you allowed to pay it off early and, if so, are there any penalties?

[garos]

Xeno said:

Can you put the difference on a credit card?

Could, but trying to reduce costs. I suppose just paying the interest may lessen the outgoings but it doesn't reduce the burden really, as far as I can see.

[garos]

fadeaway said:

think we need more details about how you financed the car. Eg is it on HP, a car loan or an unsecured loan? Are you allowed to pay it off early and, if so, are there any penalties?

BMW PCP, settlement is more than the car is worth.

[BoRED S2upid]

Get a loan clear the finance and read the very many threads on here about bangernomics you can still have fun in a £500 motor.

[LooneyTunes]

Read the small print, if you've paid more than "x" instalments or "y"% of the total then you might just be able to hand it back and walk away.

Certainly was an option when I had a PCP - albeit a good few years back now - but if that type of clause is still in the contracts then it might be just what you need...

[northandy]

As looneytunes has said, how far into your agreement are you? If you have paid half the total agreement (loaned amount + total agreement interest) you can hand it back you coud then buy something cheaper.

[garos]

northandy said:

As looneytunes has said, how far into your agreement are you? If you have paid half the total agreement (loaned amount + total agreement interest) you can hand it back you coud then buy something cheaper.

Yeah cheers, but not that long into the agreement hence the -ve. Think I'll take a bit of a hit and sell it next month and as above buy a very cheap car out right.