Am I about to loose my car?

chowebella · 2025-01-26T08:31:29+00:00

Morning all, just looking for some help if possible please. I fell into some financial hardship at the end of last year and I was struggling to pay my car finance. I tried to reach out to the company to ask for some help, they had me complete an income and expenditure form and then told me they couldn't help because I didn't have enough money left over at the end.....well case in point that's why I am struggling. I continued to make part payments as best I could i thought paying something at least and I would catch up when my situation resolved. My payments are usually £220 and my arrears were £306, so not a huge amount. I then received a default notice, I emailed straight away and advised again I was struggling and I couldn't pay the whole arrears but was happy to come to a repayment agreement as I had asked before. This time they agreed and they told me they would not look to recover the car as we had reached an agreement. Yesterday I received a letter saying to call their collections team to arrange collection of my car! I feel like I'm banging my head against a wall with this company and really don't know what to do now. My car is imperative to my job so without my car I won't be able to work. Any help would be gratefully appreciated . Thank you

lastminutetrip · 26/01/2025 12:33

Let them take the car, you cannot afford it.

Buy a car within your means with what you would have been paying. This is an expectation vs reality situation.

LittleRedRidingHoody · 26/01/2025 12:36

The letter could well have been sent before you came to that agreement. I'd call to confirm they're honouring what you agreed.

But at £220 a month and arrears that low, I think you need to reorganise your bills and prioritise the car if you need it. It's all very well and good saying let them take it and buy another, but if finances are that tight AND you'll now have default payments on file, it may be impossible to find a cheaper solution short term.

Acc0untant · 26/01/2025 12:40

A repayment agreement to repay arrears is very common, providing you get back on track with the usual payments but it sounds like you can't afford the normal monthly payments going forward which is why the company will look to recover the car.

Realistically it sounds as though you can't afford to keep the car. If the car is imperative to your job do you want to post your income and expenses here and see if we can help somewhere? If not then it does sound like they'll take the car back and with defaults and late payments on your credit report you'll not get another on finance for a while.

Original poster

chowebella · 26/01/2025 13:50

I have managed the payments just fine for 3 years. There was a situation at the end of last year where I got into some financial difficulties due to my income being lower for a couple of months. All that is now resolved and I am able to make repayments fine.

As mentioned I can't simply give up the car as I cannot work without it. My job was conditional on me having my own vehicle. If I could afford to simply give it up and buy another I wouldn't of asked for the advice

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quizzywizzy1 · 26/01/2025 13:52

If i am reading right, you have been paying the car for 3 years. How long is the term of the agreement? This is really important

LIZS · 26/01/2025 13:53

So you need to find the arrears. Your default(underpayment) has breached the agreement.

Acc0untant · 26/01/2025 13:59

chowebella · 26/01/2025 13:50

I have managed the payments just fine for 3 years. There was a situation at the end of last year where I got into some financial difficulties due to my income being lower for a couple of months. All that is now resolved and I am able to make repayments fine.

As mentioned I can't simply give up the car as I cannot work without it. My job was conditional on me having my own vehicle. If I could afford to simply give it up and buy another I wouldn't of asked for the advice

That's great but it sounds like it's not your call anymore if they're sending letters about repossession. You need to find the money to clear the arrears in full, very fast or they'll just take the car. Having defaulted you'll have breached the credit agreement.

Short answer is to increase income or reduce outgoings. Long answer depends on your income and expenses. If you don't want to post it here the folks at MSE are very helpful.

Soggydog · 26/01/2025 14:02

Phone them to discuss it urgently. If they take the car they sell it and often ot doesn't cover the amount owed on the finance. That leaves you then with no car and a debt to pay off plus very likely a poor credit rating for defaulting. You coulf also seek advice from citizens advice, CAP or CMA.

Original poster

chowebella · 26/01/2025 14:09

LIZS · 26/01/2025 13:53

So you need to find the arrears. Your default(underpayment) has breached the agreement.

I am aware I have defaulted and as stated in my original post I came to an agreement with the company to pay extra each month to cover the arrears over the remaining term.

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Original poster

chowebella · 26/01/2025 14:10

Soggydog · 26/01/2025 14:02

Phone them to discuss it urgently. If they take the car they sell it and often ot doesn't cover the amount owed on the finance. That leaves you then with no car and a debt to pay off plus very likely a poor credit rating for defaulting. You coulf also seek advice from citizens advice, CAP or CMA.

That's my dilemma with no car I will have no work and no income meaning I won't be able to pay them back at all. I'm just confused as to why they agreed the repayments and then have issued this letter. They haven't been the easiest company to deal with. Thanks for your advice I will try citizens advice

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WinterMorn · 26/01/2025 14:10

Surely you need A car not THIS specific car. Get a cheap runaround!

Original poster

chowebella · 26/01/2025 14:14

Acc0untant · 26/01/2025 12:40

A repayment agreement to repay arrears is very common, providing you get back on track with the usual payments but it sounds like you can't afford the normal monthly payments going forward which is why the company will look to recover the car.

Realistically it sounds as though you can't afford to keep the car. If the car is imperative to your job do you want to post your income and expenses here and see if we can help somewhere? If not then it does sound like they'll take the car back and with defaults and late payments on your credit report you'll not get another on finance for a while.

That's where I'm confused they have agreed to my arrears repayments yet send the letter to recover car. The financial difficulty was temporary and I have since taken steps to resolve that and I am on track now and in a position to pay the arrears as agreed just don't know why they have sent that letter after we had the agreement. The company are so difficult to deal with I just feel like I'm going around in circles with them

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Original poster

chowebella · 26/01/2025 14:16

quizzywizzy1 · 26/01/2025 13:52

If i am reading right, you have been paying the car for 3 years. How long is the term of the agreement? This is really important

It's a 5 year agreement so I only have 2 years left, I've paid 2 thirds of the finance and I've never missed any payments in the past. It was a minor blip to which I have taken steps to recover from and I was completely transparent with them from the start they are just so difficult to deal with and I don't understand why they have gone back on the agreed arrangement

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quizzywizzy1 · 26/01/2025 14:43

I do believe there is a 'thirds' rule where if you have paid a third of the finance agreement, for them to repossess the vehicle they must go through the courts therefore it's harder and more expensive for them. I'd be supremely if they went to court for this amount of arrears

Velmy · 26/01/2025 15:14

chowebella · 26/01/2025 14:09

I am aware I have defaulted and as stated in my original post I came to an agreement with the company to pay extra each month to cover the arrears over the remaining term.

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Do you have confirmation in writing of the agreement you made to cover the arrears? Have you made any payments at the higher rate yet?

LIZS · 26/01/2025 15:18

Agree with @Velmy. Email a copy to whoever sent you the letter.

Original poster

chowebella · 26/01/2025 19:27

Velmy · 26/01/2025 15:14

Do you have confirmation in writing of the agreement you made to cover the arrears? Have you made any payments at the higher rate yet?

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I do yes I have everything via email and I have paid the agreed repayment

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MargotMoon · 26/01/2025 21:16

Is the letter dated before or after you agreed the repayment plan?

RIPVPROG · 26/01/2025 21:17

Pay the arrears on an interest free credit card, then pay that off

Velmy · 26/01/2025 22:55

chowebella · 26/01/2025 19:27

I do yes I have everything via email and I have paid the agreed repayment

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It could just be an admin error/miscommunication on their end then.

Contact them first thing to confirm as you may be stressing over nothing. They may be legally able to recover the car, but with your arrears not being massive it's easier all around for you to carry on paying it off.

You said your financial issue is now resolved...is it likely to reoccur? They likely won't be as forgiving if so. If your car is essential to your income, put every spare penny into the arrears and should you find yourself in trouble again, prioritise the car payment over other bills.