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Car Finance!

(6 Posts)
Jenbob13 Sun 12-Feb-17 09:20:36

Hi! Just started on maternity so trying to dwindle some of the monthly outgoings and our stupid evil bloody car is like a swinging albatross around my neck. Our agreement is for £211 a month, over 5 years taken in 2013 which at the time wasn't unaffordable but now my incomings have changed is keeping me awake at night. Its a major finance company, connected to a big bank.

Is there any way I can strike a deal to reduce my monthly payments whilst I am on Mat leave? Or am I totally screwed? Where do I stand with this?

lionsleepstonight Sun 12-Feb-17 11:26:56

Is it a normal loan or a payment plan with a final balloon payment at the end? If it's the latter and what you owe is more than the car is worth you can hand the car back to the finance company for a small fee. You end up with nothing but would give you a clan break while on mat leave.

lionsleepstonight Sun 12-Feb-17 11:27:21

*clean

JoJoSM2 Sun 12-Feb-17 12:48:45

Worth giving them a ring. It's in their interest that you manage your repayments too. Good luck!

redandwhite1 Mon 13-Feb-17 22:26:22

I took out a bank loan and paid off my finance when I had my son, it extended it as it was a year of payments plus the balloon payment but reduced it by £100 per month so made it more manageable and didn't have the inevitable payment at the end anymore

Could've handed the car back but would've cost me £1000 in excess milage, scratches and wheel damage shock

BarbaraofSeville Tue 14-Feb-17 10:26:48

If it's on HP and you have paid more than half the total finance amount, you are legally allowed to hand it back without penalty, subject to satisfactory mileage and condition.

But can you manage without a car or a very cheap one for a while?

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