Does anyone know about negative equity on car finance?

[whatthehellnpw]

So I owe £18200 and my car is being valued at about £17000. I've lost my job and can't afford the payments. Is there anything I can do? My finance is with black horse and my payments are £314 a month. I'll manage the next one but I won't have enough for any more.

You need to contact the finance company as soon as possible and let them know your circumstances. They might be able to help you whilst you look for another job, but its easier for them to do that before you miss a payment.

HP or PCP?

I've never had HP but seem to recall somewhere that if you've paid 50% you can surrender the car. Not sure for definite so hopefully someone who knows better will be along soon.

Who has valued it? If it's the dealership or the finance company they will tend to give you a lower valuation then selling it privately. Not sure if motorway still exists but last time we sold a car through them at a much higher price than if we'd sold it back to the original dealer

How far are you through your agreement and what kind of agreement is it - lease, PCP, HP?

You might have another job by then.

Any friends or family who might be interested in buying it? If you’re being offered £17k trade then offering to a friend for the settlement figure is likely to be a good deal for them, what are similar cars being advertised for privately?

Just get any job and keep up the payments. 2 jobs if you need to hit a certain wage.

Get another job ASAP! Even if it's something lower paid, just get something, as there are lots of jobs out there. You can then apply for more relevant jobs when you find them, but in the mean time you'll have money coming in.

Do you not have a back up plan or savings given you've taken on such a huge financial commitment with the car?

The other option (depending on what sort of finance and the T&Cs) is to sell the car for £17,000 then make a payment plan to pay back the £1200 you'll still owe.

Could you ask if you can refinance the loan? Extend it over a longer period to reduce monthly payments. Or take two months repayments break and add onto the end?