Advice wanted please; I bought an A3 around 7 weeks ago, I now have to sell.

[A3-BE]

Long story short, due to sudden job cuts etc I now do not have enough income to afford living with my A3 (2009 BE). I only bought this a just under 2 months ago and I am hoping you experienced group could give me some advice?

I know that because it's on finance, I am going to lose out on a bit of money. How can I minimise this loss without affecting my credit rating etc? I can maybe afford to keep the car for 2-4 months with some money I have but the quicker I resolve this situation the quicker the £300+ / month stops leaving my bank!

To say I am gutted is an understatement, but with the cut in income £300+ a month is certainly something I would prefer in my pocket...

 

[@udi A3]

you will struggle with this one, but talk to the finance co sooner rather than later, they will be able to delay payments, make a new plan, or advise you better.

 

[A3-BE]

What if I find a buyer? Can that situation work itself out? Or is there some problems with that?

When I signed up for the car I was given a flexible loan (I think thats what it was called - I can pay more in to reduce the monthly payment or reduce the term time) so will this possibly work in my favour?

 

[@udi A3]

i highly doubt you will be allowed to sell without settling the finance. If you were able to get a bank loan to pay the finance, you could default on the bank loan without risking loss of the car.

 

[A3-BE]

Sorry, that is what I was meaning - what if I found a buyer, I could clear the finance that way without repercussions?

In this scenario I am very willing to lose the car just so I can be financially sound. I really enjoy the car and I will miss it but it is not worth bad credit against my name etc.

(Oh, and thanks for the replies!)

 

[hades-]

trouble with finding a buyer to pay the full amount off aint gona work
and i bet the pay off amount is way above what the car is worth.
unless you could get a very good mate to buy it ?
or to take the finance over ?

 

[A3-BE]

I put a large (30%) deposit down so the total value of the finance including interest is under the cars resale worth I'd say. I do appreciate I won't get all that deposit back but surely I wouldn't lose it all?

 

[Curley89]

You need to work out how much you owe and how much you can sell it for. Selling the car privately and then paying off the loan (if you can find an understanding buyer) will not effect your credit rating. The car shouldn't of lost >30% in two months!

 

[hades-]

thats a good thing then
but still finding a man in the street to buy is going to be hard

what about a dealer garage etc if theres a profit in it they may go for it

i bought my pals polo from him he owed £2300 car was workh around 4k i paid it off he was happy he kept his good credit i made some cash

 

[Wicked666]

i highly doubt you will be allowed to sell without settling the finance. If you were able to get a bank loan to pay the finance, you could default on the bank loan without risking loss of the car.

However would ruin your credit file by defaulting on a bank loan which would be bad for the future. Don't do that.

Suggest calling finance company and asking how much it would be for an early redemption. Unfortunately most of the early payments go against the interest, not capital but hopefully the amount will be reasonable. Then you will know what your options are.

 

[Curley89]

I'm guessing you'll need another car? Find a used car in a dealership, find how much they'll give you for your A3 and if there is any positive equity then use that towards your next car from the same dealership.


Is it hire purchase or PCP?

 

[@udi A3]

Rather a default and add a notice of correction to your credit file than lose the car.

 

[jbh]

I feel for you bud and I know exactly where you stand..

you're main problem with selling the car is if you're selling it privately 99.9% of buyers will do a check on the car.
now if you're going to buy a car and there is outstanding finance on it would you take the sellers word on it that its going to be paid off once the car sells?

 

[Wicked666]

Rather a default and add a notice of correction to your credit file than lose the car.

A car is not as important than getting a mortgage or decent loan interest rates or even a mobile phone or utility bills.

Any default, even if late with a payment, shows on your credit file for 5 years at least. Doesn't matter if you default with a bank or credit company.

Best option is to be honest with lender to stop anything going on your credit file. They will have processes in place to help customers as everyone can go through a rough patch. It's when customers default, don't tell them and the lender has to chase that they stop trusting and start sending final demands.

In this case first find out redemption £ and then consider your options pal.

 

[@udi A3]

Still, a default and three months missed payments followed by 6 months catching up, with a notice to explain would show you agreed a plan and was responsible dealing with it. Any reputable mortgage lender will see this in a positive light. Mobile phones can be connected with appalling scores!!

 

[Wicked666]

Still, a default and three months missed payments followed by 6 months catching up, with a notice to explain would show you agreed a plan and was responsible dealing with it. Any reputable mortgage lender will see this in a positive light. Mobile phones can be connected with appalling scores!!

Honestly it's not that easy. A default is basically breaking an agreement. If you negotiate in advance then won't have to default. Would affect utilities, personal loan interest rate, future car finance etc. my suggestion is never default. (Ps I've worked for a bank for 13 years so have seen both sides)

 

[@udi A3]

Ive worked in debt recovery for 5 years and been on the other side previously, ive seen all sides

but as per my original post, talk to the finance co well in advance and be proactive, they will be able to help you. Pointless selling if its only likely to be a few months in this situation.

 

[Innocence80]

My ex sold his truck with finance still on it. He got a settlement figure from the finance company and put in the advert that the car was still on finance but would be paid off once the car was sold. A lot of people do this, especially on ebay. A bloke bought the truck and my ex went with the mans son to the bank and arranged for the finance to be settled there and then. As long as you make the finance company aware and the person buying, it wouldn't be a problem and doesn't affect your credit rating at all because you are clearing the finance.

 

[Matt_Storm]

Look on Get Out of Debt with Get Out Of Debt Free - getoutofdebtfree.org if you really want to get off paying anything. I had an issue with a big insurance company a few years back who tried to sting me for a few thousand i even had bailiff threats the lot it went on for over a year but if you do it right lawfully there is nothing they can do to you. I ended up learning a LOT about the finance system, depts - common law etc what you sign for or dont, you can get away with owing nothing and returning the car, after all its just their profit you will be apparently owing or keep the car and refuse to pay the interest but it takes a lot of research and balls. I wouldnt advise anyone to get anything on credit ever or sign for anything!

 

[Wicked666]

Ive worked in debt recovery for 5 years and been on the other side previously, ive seen all sides

but as per my original post, talk to the finance co well in advance and be proactive, they will be able to help you. Pointless selling if its only likely to be a few months in this situation.

Agree talk to finance. A default will mean future credit will be more expensive as you will be a higher risk customer. If it gets to a debt recovery stage then its bad news.

Obviously I don't know the full details but how's the job hunting going? Could you temp for a while until you get your next permanent job?

 

[TDI_TIM]

A3-BE this is a common situation but easily sorted, but first you MUST call the finance company, get a settlement figure in place (normally the amount borrowed plus up to 50days interest, it will never be the full amount)

Once you have that your options are;
1. Sell the car for X amount of pounds (x being the settlement figure and if you put 30% down as a deposit then you should cover the finance costs and potentially get a little cash in your pocket too) Once the car is "sold" you call your finance company up, pay off the finance there and then, job done.

2. Go to a dealer, tell them you have the car and its on finance, sell them your car and then carry over any remaining credit from the A3 to another car (a cheap runaround) lowering your repayments and still getting a car

3. Inform your finance company you are now without a job, if you purchased / opted in for the correct cover then you will be entitled to not pay for finance for X amount of months, or get the finance frozen and then once you sell the car / get a job pay off the remaining finance with the "frozen months" being added onto your agreement.

Hope that helps.

Tim

 

[sliced]

Crash it badly :$