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Original poster

Car irreparably broken but still on finance

27 replies

Ashara · 19/02/2025 14:50

Hi, wondering if anyone has any advice/had this situation before.
I have around 5.5k to pay off on my car. It's probably worth about 4.5k working. It broke down and the garage has now said it's not cost effective to fix it and even if they did they are concerned something else will go wrong in the short term. They have said to sell for spares or repair. My issue is I don't have the ready cash to pay off the finance, and for credit score reasons I can't get a loan/credit card. It's not an option. A condition of the finance agreement is that the car is MOT'd & insured etc but it won't pass the MOT obviously. Does anyone have any advice/knowledge? I can continue the monthly payments (have about a year left) but obviously can't meet the MOT commitment etc. sorry if I'm rambling, feeling a bit in shock at the moment!

OP posts:
mumofoneAlonebutokay · 19/02/2025 17:23

No advice but bumping

If the same happened to me, I'd be in the same situation. Hope you find a solution x

Hayley1256 · 19/02/2025 17:25

Will the lender refiance to a new car?

babasaclover · 19/02/2025 17:32

So sorry to hear this. Once you get yourself out of this situation would you consider car leasing to something to suit your needs pay aceta amount every month to include maintenance and servicing they even replaced the brakes tyres et cetera within that price. Yes you will never own the car, but realistically cars breaks so often now you never end up owning it before the finances up anyway.

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General money
Cyclistmumgrandma · 19/02/2025 17:35

Contact the finance company, and ask what they suggest. You won't be the first person in this position that they have dealt with.

JerseyCrow · 19/02/2025 17:36

I don't know the answer to the MOT thing but I do know it's sometimes possible to add outstanding car finance to the new agreement. I did this once when I was desperate to get rid of a car I hated that was in negative equity.

You'll end up paying more a month so it might be worth looking at how you can clear the finance asap.

It's not a great idea but an option if you're really stuck.

One of the reason I would only get finance now for a brand new car is the risk of this happening but I had to find out the painful way too.

JerseyCrow · 19/02/2025 17:37

I agree about calling the finance company first though. They will know what needs to happen.

Leftleg · 19/02/2025 17:40

Can you get a quote from another garage to fix it? What is broken on the car?
If the car is worth 4.5k working surely it would be worth fixing

RentalWoesNotFun · 19/02/2025 17:43

There's some rule that if you pay off 50% of your finance you can hand back the keys and walk away. I don't know how it works but just mentioning in case it's relevant.

What's wrong with the car? Ask another garage? Did you forget to put oil in and the engine seized or something? Or is it just a rust bucket or what?

Were you mis-sold in some way ie is this a consumer issue (I'm thinking prob not as you've had it a while).

Is it something it's previously failed an mot on or new stuff?

More details please

SpeedyMcNobhead · 19/02/2025 17:46

You can refinance the negative equity onto a new car.

I have had to do this when the engine went bang on my 3 year old car. They took it in part ex and financed the rest alongside the replacement.

SpeedyMcNobhead · 19/02/2025 17:47

RentalWoesNotFun · 19/02/2025 17:43

There's some rule that if you pay off 50% of your finance you can hand back the keys and walk away. I don't know how it works but just mentioning in case it's relevant.

What's wrong with the car? Ask another garage? Did you forget to put oil in and the engine seized or something? Or is it just a rust bucket or what?

Were you mis-sold in some way ie is this a consumer issue (I'm thinking prob not as you've had it a while).

Is it something it's previously failed an mot on or new stuff?

More details please

The car has to be in a roadworthy condition to hand it back. Only general wear and tear allowed.

Lanawashington · 19/02/2025 18:34

Hayley1256 · 19/02/2025 17:25

Will the lender refiance to a new car?

This is what we had to do when similar happened to us. They just put the outstanding balance on to a new agreement for a new car

LetMeStopWhatImDoingToFixTheProblemYouMade · 19/02/2025 18:43

Sorry you're in this situation.

What's the problem with the car? Has it got an MOT at the minute?

I'd get a second opinion firstly. There is always a cheaper way to fix a car so find a local recommended honest garage.

Worst case, sell to we buy any car. They pay less because people sell cars with issues. It's not moral or right but it's an option.

taxguru · 19/02/2025 18:43

It really doesn't matter about comparing cost of repairs against the market value of the car. Have they actually given you a quote to fix the problem?

It's "cost to you" that matters. I.e. how much it would cost you to get it back working compared with how much it would cost you to buy a replacement, pay off the finance, less the presumably scrap value of the old one.

Garages can be notoriously for telling you it's not worth repairing, but they're not thinking of the cost to you of the alternative.

I'd definitely get a second opinion from a different garage.

Hekett · 19/02/2025 18:45

It won’t help you now OP, but for next time, I’d look into gap insurance. It cost me £300 for 3 years but meant it would pay out the actual value I needed, not the market value which was far less!

LetMeStopWhatImDoingToFixTheProblemYouMade · 19/02/2025 18:47

Hekett · 19/02/2025 18:45

It won’t help you now OP, but for next time, I’d look into gap insurance. It cost me £300 for 3 years but meant it would pay out the actual value I needed, not the market value which was far less!

I don't think that would help in this instance as it just needs repairing. As all cars do at some point. You're right tho... gap insurance is essential for any car on finance. I used to work in insurance and I've seen people left in so much debt because they owe a lot more than they borrowed.

invisiblebark · 19/02/2025 18:59

What car? How old? Mileage? What's wrong with it?

Hex99 · 19/02/2025 19:08

SpeedyMcNobhead · 19/02/2025 17:47

The car has to be in a roadworthy condition to hand it back. Only general wear and tear allowed.

Show quote history

Not always.

Handing the car back before the finance is complete is called voluntary termination. You can do this without a fee once you have paid off half of the balance.

I work in car finance, ours is currently accepting cars in any condition (non runners will have an uplift fee)

Call the finance company and explain the situation. They will be able to advise you on options and if you have reached the half way point

HellofromJohnCraven · 19/02/2025 19:15

The garage/you won't be able to do anything with a finance marker on the vehicle. You need to contact the finance co and explain.

Original poster
Ashara · 19/02/2025 20:21

Thanks everyone. To answer some questions, it's with a mechanic we've used for years and trust. He's always cheaper than anywhere else. Nothing we've done, and work is at least 3k, it's a Mazda, DPF is shot, turbo is affected and needs replacing. He's said if we gave him the car for free he wouldn't bother fixing it as wouldn't be worth it. Credit rating is through the floor due to previous redundancy so refinancing is not an option.

OP posts:
SpeedyMcNobhead · 19/02/2025 23:09

Garage is having you on if they’re telling you it’s £3k to do a DPF and turbo!

Granted it’s not cheap but it’s certainly not £3k of work. £300 for a turbo at retail price, anywhere between £300 and £700 for a DPF and about £300-500 labour.

You might trust them but they’re ripping you off.

Source-in the trade.

TheTigerWhoCameToEatMyArsehole · 19/02/2025 23:19

Get another quote. Like fuck would he not fix it and then sell it. Another in the trade here.

HeebieJeebeez · 19/02/2025 23:32

Ashara · 19/02/2025 20:21

Thanks everyone. To answer some questions, it's with a mechanic we've used for years and trust. He's always cheaper than anywhere else. Nothing we've done, and work is at least 3k, it's a Mazda, DPF is shot, turbo is affected and needs replacing. He's said if we gave him the car for free he wouldn't bother fixing it as wouldn't be worth it. Credit rating is through the floor due to previous redundancy so refinancing is not an option.

Have pm u

LetMeStopWhatImDoingToFixTheProblemYouMade · 20/02/2025 06:38

I've had the same issue and it is a big job but it does seem overpriced. See how much a refurb turbo is from somewhere like turbo technics and look around for car parts like the dpf. DH had his removed or opened or something.

usniniasen · 20/02/2025 07:03

I think if repairing is not cost-effective, you can consider selling the vehicle for parts or scrapping it. Although it may not be able to fully cover the loan, it can at least reduce some of the burden. You can contact a specialized scrap car recycling company to see how much they can offer. You can install a locator on the car to monitor your vehicle safety. This sales website "jammermfg" should be able to provide some help.

Adz93 · 14/05/2025 21:51

Hex99 · 19/02/2025 19:08

Not always.

Handing the car back before the finance is complete is called voluntary termination. You can do this without a fee once you have paid off half of the balance.

I work in car finance, ours is currently accepting cars in any condition (non runners will have an uplift fee)

Call the finance company and explain the situation. They will be able to advise you on options and if you have reached the half way point

Show quote history

I’m hoping this is the case for me… my 4 year old Jaguar E Pace with 56,000 miles on the clock has had a catastrophic engine failure (apparently common in this model). Jaguar finance have said if I have paid off half the PCP term I can voluntarily terminate the contract and walk away without having to fix the vehicle. Sounds too good to be true but I’m keeping my fingers crossed this is the case.

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