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Original poster

Car payment holiday - unable to get through

60 replies

newyearsresolution2010 · 30/03/2020 16:27

I'm trying to get a payment holiday on two cars I have (both in my name but one my husband pays for).

I have been on hold for hours and can't get through. One came out today (£680) and the other is due on the 3rd (£253).

I don't know what to do in terms of stopping the payment on the second. I know to not cancel the DD but also am panicking if it goes out.

Please don't judge what we pay out each month for this, we can easily afford the cars in 'normal' circumstances, and have paid for them every month for nearly 3 years without any issues or struggle.

I am a company Director, so at best I can close my business (not ideal but it's recruitment so no work) and claim the £575 (after tax) per month, but that isn't going to pay for much.

Do I just keep trying? With a 2 year old not in nursery I don't have hours to spend on the phone as he needs attention.

OP posts:

ohwhattodowithmylife · 30/03/2020 16:32

Hi,
So sorry, if I were you I would
Cancel the dd so you have money and just keep
trying to get hold of them.
You will have to keep
Trying though child or not. Goodluck x

playthestation · 30/03/2020 16:46

Cancel the DD. It will already have been applied for by the finance company.

playthestation · 30/03/2020 16:48

Sorry the 3rd, I read the 1st for some weird reason. They may still be able to cancel that for you but only if they have payment holidays set up. A friend of mine has been back and forth with black horse over the course of a few days because they had no system place when she called last week.

If you will be short without the money then cancel the DD 100%

NotDisclosedToday · 30/03/2020 20:09

Obviously you have been on good money so cant you just sell an investment or something like that?? then after this next payment has gone through you will have several weeks to discuss your options.

NotDisclosedToday · 30/03/2020 20:12

Oh and your options might depend on the type of payments. Are they standard bank loans you used, leases or PCPs?

rottiemum88 · 30/03/2020 20:15

Obviously you have been on good money so cant you just sell an investment or something like that??

what a ridiculous presumption to make about OPs financial situation

rottiemum88 · 30/03/2020 20:17

FWIW I would also recommend cancelling the DD before it's taken and doing your best to contact the company in the next couple of days. That is, unless you can afford to be without that payment if you risk not cancelling it?

BentNeckLady · 30/03/2020 20:20

I don’t think it’s a crazy presumption that a person that can spend a almost a thousand pounds a month on a car payment is “on good money”

Could you get an overdraft Op?

fromdownwest · 30/03/2020 20:28

I know that this is not the basis of the post, and please do not think that this is a dig. Maybe, something to consider going forward. If you could easily afford the loans, then you would not need to take payment holiday. What it does indicate is that you are very highly geared, with little or not capacity for loss or reduction in income.

After this is over, and I hope that you come to a suitable resolution for your car loans, and you business does pick up again, maybe consider reducing your gearing.

I think many people will be doing this, it is all fun and games until the music stops.

NotDisclosedToday · 30/03/2020 20:28

"what a ridiculous presumption to make about OPs financial situation"

Are you for real? If she can afford to spend £900 a month on cars then its not ridiculous to assume she has been on decent money.

rottiemum88 · 30/03/2020 20:48

No, it's ridiculous to assume she hasn't explored other options already to be asking this question. Being on good money doesn't automatically mean someone has lots of disposable assets to sell, like investments. It OP did, why would she even be asking?!

fromdownwest · 30/03/2020 20:51

I think they are trying to make, is that if someone can spend £1k per month on cars, then it would be sensible to have cash reserves in the back ground.

BubblyBarbara · 30/03/2020 21:10

Are you on PCP or HP? If so, if you have paid over half of the total amount bottles borrowed you can do what’s called a voluntary termination. The car goes back, payments stop, and that’s that.

Original poster

newyearsresolution2010 · 30/03/2020 22:02

It’s PCP.
I’m also not quite into the 50% paid off so can’t even hand it back...

I made good money, which was a basic salary (£719 p/m) plus dividends.
I’ve had my own business for 5 years, make £45k+ and have no other debts. I pay for 3 holidays a year.

The industry I’m in I’ve worked in, very successfully, for 15 years. I’ve always done well, very well, but now it’s changed. Literally in the last 3 weeks I’ve gone from earning a lot to earning nothing.

I didn’t ever need to have reserves, why would I, no one predicted this would happen. For 15 years I’ve been successful in my career so why would I ever think that would change.

I have about £1k in the bank, if you can call that a reserve, and worst case scenario is I use that and take a month to try and contact the car people and hope I get through.

I guess I was just asking if I cancelled the DD if it would help/have an impact. I’m panicking as I’ve never been in this position before.
Going from having everything to having nothing is unsettling and scary, as I’m sure it is for everyone right now, and having worked so hard for 5 years is the only option to close my business? And even if I did I still won’t have enough to pay my bills...

Would cancelling the DD help?

OP posts:

fromdownwest · 30/03/2020 22:13

Why would you need reserves?

illness
change in industry
credit crunch
change in personal circumstances
global pandemic

I’m sorry app but having £1k in cash an spending £1k per month on a car is irresponsible financial planning.
Mine should always aim to have 6 months expenditure in cash for in know events.

I think this will be a lesson to many, just because it was doesn’t mean it will be so.

onetimeprepper · 30/03/2020 22:14

"No, it's ridiculous to assume she hasn't explored other options already to be asking this question. Being on good money doesn't automatically mean someone has lots of disposable assets to sell, like investments. It OP did, why would she even be asking?!"

Your advice is crap. You are basically saying she will have already exhausted all ideas so needs to cancel the debit asap. Perhaps some other posters might have valid suggestions.

Speaking from personal experience I once had £2,000 worth of premium bonds that I had forgotten about for several years. It was not until somebody brought up the topic at work one day I remembered about them, and subsequently cashed them in.

Now turning to the orginal question. I think you should only cancel the £253 if it means you cannot buy food or pay your mortgage. Let it go through on the third and then you have a month to appeal to the pcp providers better nature for a break from payments. In the mean time are they on twitter or facebook? I find companies are quicker to respond on these platforms because the world, or at least a potential customer base it watching.

Hope it all works out but I think intentionally defaulting on a payment you owe is best avoided if at all possible. It might help in the short term but in the long term it might cause problems. Pay it then discuss with matter with them afterwards. I also suggest putting all communication in via email so you have an audit trail.

BubblyBarbara · 30/03/2020 23:52

Sorry to hear about your troubles, I have every sympathy. Car companies are going to be flooded with people who can’t afford their cars now and they will not want them all repossessed so you’re in a good position to get a holiday I think

Sweatheart · 31/03/2020 00:16

You're going to tank your credit rating if you cancel the dd without getting through surely?

Livelovebehappy · 31/03/2020 20:21

I wouldn’t cancel your direct debit. It will show on your credit file as a missed payment and will be very difficult, if not impossible, to get it removed. Think you will just have to keep trying.

kilisibird · 31/03/2020 20:59

I wouldn’t cancel your direct debit. It will show on your credit file as a missed payment and will be very difficult, if not impossible, to get it removed.

A missed payment or food on the table?

Also, one direct debit missed wouldn't show, they would simply reapply for it in a week or so by which time OP may have managed to make an arrangement with the finance company

Teacaketotty · 31/03/2020 21:06

Keep trying to get through, I got a three month holiday for mine. My payment went out the day it was approved so they told me to contact my bank and they got my money back the same day with the direct debit guarantee. Don’t just cancel the direct debit, get an agreement with the finance company in place and then the bank can get your money back for this month.

NotDisclosedToday · 31/03/2020 21:48

I do wonder if all these people around the country asking for 3 months holidays have any plans for the month after the break.

TallRachel · 31/03/2020 22:03

Whilst this pandemic could not have been easily predicted. Part of me thinks that if people need a payment break after less than 1 month of this crisis, then they perhaps should have been driving a £2000 Renault Clio in the first place. At least whilst accumulating a rainy day fund.

Okay maybe not realistic for those on small incomes to buy a car outright so I am very sympathetic for those people. But the thought of spending £500+ a month on a car yet happily living without any savings completely baffles me.

Teacaketotty · 31/03/2020 22:54

Part of me thinks you shouldn’t judge if you don’t know peoples lives or situations. The OP asked for advice not judgement.

Original poster

newyearsresolution2010 · 01/04/2020 07:05

I earn £3-6k a month, every month, and I’ve done that for over 5 years. Managing the car payment was never an issue. My mortgage is £280 a month and I have no other debts. The car is my only luxury, along with holidays, which I can afford. Why would I ever think an industry that’s been my career for 15 years would just stop because of a virus no one predicted?

OP posts:

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