Are you able to cancel your car finance after a year?
I signed a 5 year contrat for my car finance but I have only had it for a year, now my circumstances have changed and I now cannot afford my finance, what can i do? My finance is with carcraft.
Tags: able, After, cancel, cannot, car, car finance, circumstances, contrat, Finance, year
Related Items
- need car finance but on debt management programme which finance com should i try?
I need the best deal from a car finance company. I have been on debt management for a year, as i did not want to miss payments. I work full-time and c... - Is there possibility to find car finance in uk if u have low credit score?
I am employed and my income is 800 Pound a month, is there way i can find a car finance ... - Finance on a car. What can you do if your lost your job and cant afford the paybacks?
got brand new car mid last year job/money has fallen what can i do ? i have a 5 year finance with through the bank. is there anyway i can down grade s... - How long do you usually wait for credit checks to come through for finance request?
How long does someone usually have to wait for their checks to come back if applying for car finance? ... - how do i start my own car finance company in the uk?
how do i start my own finance car finance company?who do i approach? ... - When is the best time to buy a laptop, before Christmas or after New Year and what brand, Sony or Toshiba?
I need to buy a laptop and i'm wondering to buy it now or wait to get it after the New Year because of the price and model.and i really like Sony but... - How would getting married on December 31st affect my 2008 income taxes? Should I wait until after the new year?
How would getting married on December 31st affect my 2008 income taxes? Should I wait until after the new year? ... - If you were able to change anything at all, in any category of Yahoo Answers for the New Year?
What changes would you make and in which categories would you make these changes, to improve Yahoo Answers? You can list as many categories and change... - If my paycheck includes a couple of days after the new year?
Will the money I made on those days be included for my W-2's for 2008? Last year a couple of days were left out because my pay period ended right be... - After watching all the fools on Dick Clarks rockin New Year I had to wonder if the economys realy bad?
If were goong in the toilet how can so many people spend money to travel to New York and other places to celebrate the new year. ... - When will you start working after this Christmas and New Year holiday?
I'm wondering, for you who will be having Christmas and New Year holiday, when are you going to start working at the office or school or university ag... - Do you think employers are waiting to call and schedule interviews until after the New Year?
I applied to jobs all this month and haven't heard anything back though I am sure I am very qualified for the said positions. Do you think this is bec... - How much tar is in my lungs after a year and a half of heaving smoking?
I'm considering stopping smoking weed after heavy smoking (all day every day) for about a year and a half. Is there any tar buildup in my lungs? And i... - Does the value of a car go down after the start of the New Year?
I was looking to buy a truck the other day from a dealership but didn't buy it. Now that it's the new year, the truck is another year older. It's a 20... - Why is the buddhist new year celebrated three days after the first full moon?
It say's in my buddhist notes, that the buddhist new year (celebration) starts at the first full moon in april, and goes for three days from then. Why...
May 29th, 2010 at 4:01 am
You can default and let them repossess the car. Or you can sell the car and re[pay the loan from the proceeds. Depends on what the value of the car is relative to the loan.
May 29th, 2010 at 4:17 am
Unless you are going to pay off the outstanding balance, you have no choice but to carry on paying, or you will be in trouble.
May 29th, 2010 at 4:35 am
You need to get with them and explain your situation, they may be able to refinance your car again.
If they can re do it, so that you start over, your payments will be lower because you have a year’s worth of the loan paid off.
If they won’t do it, you can try at your bank to take out a loan with them and pay off carcraft.
Otherwise, if you can’t make the payments, you will need to try and sell it for what you have left to pay on the loan, or they will repossess it, auction it off, and you will be responsible for the difference if they don’t sell it for what you owe.
Good luck.
May 29th, 2010 at 5:04 am
best thing would be to sell the car and repay the loan.
Other option is to default, they come and take car, you go on credtit blacklist and become liabe for any shortfall, baillifs come and take your stuff
Best sell car and pay off loan
May 29th, 2010 at 5:32 am
phone them and see what your options are
May 29th, 2010 at 6:02 am
Your options are:
1) Default on the loan and let them repossess the car. This is your last option since it will really damage your credit and make it much harder and more expensive to borrow money in the future.
2) Try to get it refinanced through another finance company at a lower rate or lower payment.
3) Sell it for what you can get out of it and figure out a way to pay any shortage.
4) Contact the current finance company, explain your situation, and see if you can negotiate some way to keep the car without defaulting on the loan.
Trust me on this, try everything and anything legal you can to not default on that loan.
May 29th, 2010 at 6:25 am
Are you in the US? Call your lender and talk to them. I know of 2 people that turned their car back to the finance company and it WASN”T a repo.
May 29th, 2010 at 6:51 am
If the finance is a ‘Regulated Hire Purchase’ agreement, then the finance company actually own the car until the very last £ of the contracted payments are paid. Therefore you cannot legally sell it yourself if a shortfall will remain.
As it is so early in the term of the 5 year agreement, there will undoubtedly be a fairly large difference (shortfall) between the actual second hand resale value of the car (i.e what you can get for it if it is sold) and the balance of the remaining finance.
You need to contact the finance company IMMEDIATELY. They are not normally OGRES, and if you explain the situation, and it is only a tempoary financial blip, they will be more than accommodating. They would rather reschedule an agreement than have to reposess the car.
If it is a case that you have a serious long term problem, then you will probably be better to cut your losses and give the car back. If the agreement was regulated by the ‘Consumer Credit Act 1974’, then you will have the option to Voluntarily Surrender the car back to the finance company. If you do this, you simply write them a letter stating your wish to surrender the car. The date of the letter is the date to which the finance company recalculate an ‘early settlement figure’, and this amount will be your final liability to the company.
They will sell the car for as much as they can get through specialist large auctions, and it should get ‘Trade’ value of the car. It is in their interest to get as much as possible for the car, as they ideally want to recoup as much of the debt in one lump sum. The difference between what the car sells for, less costs incurred in selling it, and the ‘settlement figure’ is what you will still be liable for.
If you still owe anything, don’t worry, as that amount will be now an unsecured debt, and you will be able to negociate an affordable amount to pay weekly/monthly, eg £5.00/week, depending on your overall finances.
SURRENDERING your car under the terms of the agreement that actually allows this option, is nowhere near bad as if you let payments default and have it REPOSESSED, as in that case you would be liable for the FULL balance you would have paid upto the end of the 5 years, instead of the early settlement amount. To avoid nosy questions from neighbours or relatives, you could always say you sold the car, or that it was faulty and you demanded they take it back etc?
People answering above have wrongly suggested struggling on with things, or default and let them REPOSESS, but if your financial situation has changed, you have to be realistic and take immediate steps to adjust your expenditure. The fact that you have asked this question is great, as it shows that you are not the type that buries your head underneath a ton of unopened brown letters!
Cut out the large monthly payments you were paying them, give the car back and get a few hundred £ together, if you can, to pick up a cheap little runner if you really need a car.
You don’t need the added stress of being chased for payments you can’t afford.
One final option that depends of your situation, is you may be able to arrange a loan from family or a bank or use a credit card to raise funds to clear the finance (Get an early settlement figure from the company). You could then keep the car and pay this ‘unsecured’ loan over a longer period/ lower monthly rate, but seriously NOT the best option! You will be adding interest onto interest at a very high rate! As you opted to have it on a 5 year term, I would guess you already were stretching yourself on the monthly repayments to afford a more expensive car?
I worked for the TSB in their car finance dept for 6 years, dealing with defaulting customers and dealing with surrendered and reposessed cars all lhe time, at the height of the early 90’s Housing Crash.
Read the credit agreement you signed, as it will lay out your options and give the finance company a ring NOW and they will be VERY sympathetic and advise you on all your options in more detail!
Good luck.
May 29th, 2010 at 6:51 am
Despite an earlier answer, do not sell the car if it is a Hire Purchase(HP) agreement. This would be illegal as the car belongs to the finance company until you make the final payment. Check the agreement or seek advice if you are unsure.
If it is a personal loan then you could sell the car but it’s very unlikely you’d sell it for enough to clear your debt!
November 1st, 2011 at 4:24 am
Hi. I needed to drop you a quick note to impart my thanks. I’ve been watching your webpage for a month or so and have picked up a heap of sound information as well as enjoyed the way you’ve structured your article. I am setting about to run my own webpage however I think its too general and I would like to focus more on smaller topics.