Car Finance

[DanFlo]

I have Finance on a car that at the moment exceeds the value of the car. I have recently been made redundant and it's looking like i will lose my car because i can't maintain the payments. Will i be responsible for the excess value of the car that will be outstanding on the loan, i don't have insurance to cover the payments due to redundancy.

[CheekyChops]

More than likely you will be responsible.

Is the car financed with a personal loan or HP? If HP, have you paid more than half? If so, you may be able to do a voluntary termination of the agreement and pay nothing more.

[DanFlo]

It' HP but less tha 2007

[factor-fiction]

Sorry, I don't understand your last posting, DanFlo.

[DanFlo]

It's HP but less than half has been paid. The HP was taken out last year.

[Freelancer10]

really depends on which company you got finance from.
It may be uneconomical for the company to snatch the car back
they may prefere you make payments to cover the interest until your work situ changes
Be careful that a charge is not put on any other thing such as property
It is most definite they will want the balance should they repocess the car
They main thing is dont ignore them . talk they are in the money buissness and have heard it all
I thought id never say this but in the present climate speak with CAB
They haved helped me recently and knew what they were talking about

[DanFlo]

Thanks for all your responses, looks like a trip to the CAB is on the cards.