finance payments

[karene50]

my son has been laid off from work and is receiving �240. a month jsa. His repayments on his car are �220 monthly his insurance is �107 month. Is there any way he can get his finance repayments down for a while until he gets himself another job. With the way the job market is at the moment this could very well be a while. He is a heating engineer and plumber but is finding it almost impossible to find work even through the agencies.

[ojread2]

Did he not have payment protection?

[Ethel]

There is no way he'll be able to get the insurance down, he can try with the car finance.

He may be better off selling the car and cancelling the insurance

[karene50]

no he has not got ppi. you cant sell a car that you have got finance on.

[Ethel]

I didn't know the car had finance on it - he could have bought it with a personal loan.

[ojread2]

Well he could sell a car with finance - you trade it in for something cheaper and the trader pays off the rest of the finance. How long does he have left on the loan?

[karene50]

he has only got 14months left on the finance. you dont think these things will happen to you when you take out finance do you.i have just found a web site that you can download a template letter to send to the place where you got finance it tells them your situation you are in and you offer them what you can afford and it also asks them to freeze the interest so we will see how we get on with that. if al else fails it looks like mum n dad will have to bail him out for the time being.

[Gmcd01]

You make a valid point about the car not being sold on finance.
The reality (I know, yes, it's not legal) is that many people sell on these financed cars through ignorance of the law. The finance company really won't care/find out as long as your son uses the proceeds to make the payments. I've come across many cases in commercial disputes (more than a few involving 'little old ladies') where the car has been sold on, but never a case where the finance company has tried to recover the car when payments were being made.