PCP car finance.

[temporarylifecrisis]

Hi there, I am looking for anyone who knows anything about the car finance world.

I have a car on finance that was bought in July. Today my partner has decided he no longer wants to be in the relationship and is leaving. We have been together for 10 years and have children/house (rental), and it came as a massive surprise.

The car finance is in my name and he has said that with immediate affect he is withdrawing from the bills. I am a stay at home mum and I am blindsided. The car is in my name and I have no idea how I am going to pay for it. And everything else for that matter. I have some savings but only a few hundred and nothing that would go very far.

I am absolutely devastated and scared about the future and have no idea what to do next. I worked up until we had our youngest child but it worked out better for us financially if I stayed home until school age so no childcare fees.

If anybody can help me I would appreciate it, my next step is going to be citizens advice.

Thank you

So you can ask your finance company for a quote to exit the agreement (usually called a settlement agreement). You’ve probably two options there, to either “hand it back” or sell it for cash and settle (pay off) the finance. The problem is potentially that it may cost you something to do that. But you might consider it worth it long-term.

Or you could go to a car dealership, and look to trade the car in for something cheaper. Again the finance would be settled, and you’d take out a new PCP on the cheaper car. Again possibly not the best deal ever if you only bought the car in July …. But cheaper (or no) monthly payments may be your priority over “getting the best deal”.

Obviously that’s just a stand-alone position, and not giving any consideration to how else he should be contributing financially.

Citizen advice would be the best place to get advice.

I'm surprised the finance company gave you finance when you are a sahp. Dh had to give his work history to get our car finance.

Wow what a shit situation OP.
I would guess you need to speak to the finance company and ask what the options are but - if its in your name I assume you were working at the time you took it out?.

Make sure you put in a benefit claim - or whatever its called these days! - and make sure the shit pays for his kids.

Oh dear. What a mess.

However, the car finance is low priority. Don't do anything with that just yet.

You first need to apply for Universal Credit.

You also need to sort out maintenance from your ex. Go on the child support agency or whatever it calls itself these days, and work out how much he needs to pay using their formula. See if you can get him to agree to pay at least that amount (by standing order each week/month so you know where you are) without using the CSA, if not, make a claim through them. Let him know that he has to keep up some of his responsibilities.

Are you able to work at all? You'll get help with childcare costs, or you could work while they're with their father?

Then once all the above is sorted, you can look at how the car payments fit into your budget, and if not, deal with them accordingly. You might be able to spread them over a longer period or swap the car for a cheaper one, rather than have to terminate the car agreement which, as well as leaving you without a car, might damage your credit history and cause further financial difficulties.

What's your housing situation? Is the house suitable for your needs (affordabilty, location, size) in your new situation, or will moving to a smaller/cheaper property or one where you can manage without a car help your finances?

Thank you for the replies, thankfully I have started a universal credit application and know roughly how much I will get. I am 5 months pregnant so although I would like to work right now it's probably going to be hard to find an employer. I was about to go back to work when we decided to have one more baby as I was already off and then I could go back to work and focus on my career in the next couple of years. Unfortunately it seems that the only person this has impacted is myself but I will definitely be going back to work as soon as possible for my family.

The home is perfect location, size and price luckily. Although he hasn't actually said when he will be leaving, just that he is no longer contributing. I will definitely get my finances in order before sorting the car and will look into stretching the payments over a longer period if they will let me. I feel numb right now

6 months pregnant sorry, or going into my 6th month. I have name changed for something more positive

Although he hasn't actually said when he will be leaving, just that he is no longer contributing.

what a checky so and so ...... Id pack his bags whilst hes at work and kick him out, nice thats he thinks he can stay but not pay his way