Car finance... Is there a way out?
Two years ago I signed up for a 4 year car finance package, borrowing about £12,000 with Yes Car Credit. It has a huge interest rate and I pay back about £240 per month. I was with my husband at the time, so both our names are on the agreement. I have since split from him but I have the car and make the payments from my bank each month. Basically, I still owe about £6,000 on the car, however it is only worth about £3,000 now. These payments are making my life difficult now I'm single. Is there a way I can get rid of the car and the finance without affecting mine or my ex-husband's credit ratings badly? Another loan is out of the question - I want to get rid of all my credit, not add to it!
Public Comments
- If you have the vehicle insured it at a higher value - there are people who can 'steal' and set fire to them. You aint seen me.... right!
- Terrible answers, you'll bring the heat in. I would approach your lender and advise them as to your circumstances and ask them if there is something that can be done. I did this and the loan was re-negotiated at what I owed with a better interest rate as I met payments on time. I got to keep my car and pay less in repayments. That might work for you, anyway it is worth to try.
- I'm facing a similar dilemma, really would like to know the solution to this one.
- As I recall Yes Car Credit appeared on Watchdog some time back. They are not amenable to reducing your payments and will probably not aid you in any way. Is it H.P. or a loan? H.P. gives you some protection and you can cancel the agreement. Read the agreement. All may not be lost.
