Got my vRS on finance.. as many people my age cant afford to pay

Hi Jimb0, did you get your car on HP or a motor loan? If it was HP then depending how much you have paid, there are certain rights that

Another alternative(not wishing to add to your fuinancial burden but it will reduce your repayment)

Check money matters . com and see if you acan take a new loan for the outstanding amount over 3 - 5 yrs

Will take you longer to own vehicle and will cost more long term but will make repayments easier to afford:thumbup:

Get rid of the car. Save your money for a bigger deposit on your next car.

Worth check ing the small print of the finance agreement and see if they have any penalties. Another option would be talking to your local dealer and see if they'll buy it off you for cash so you can clear the finance, but the danger there is they won't give you enough and you'll still need to top it up.....

FWIW, I've always avoided finance for this reason and would personally use an unsecured loan so you can easily sell the car to raise cash if needed

Chris

Have you spoken to the finance company to see what the current settlement figure is, it may well be higher than you think after only 8 repayments. Unless you put a large deposit down, I dont think you will owe less than the car is worth especially if you financed over 3 or 4 years.

If things are getting sticky, then before it gets out of hand, speak to the finance company for a settlement figure then speak to your bank manager and try and get a more competitve loan to pay off the finance company. That way you will own the car, and selling it later if its required will be much easier.

If money really is a serious problem,get shot,buy a cheap runaround.

Cars really aren't worth it when finances are tight.DON'T take a 5 year route.I did it once,never ever again.3 max.

So many cheap cracking fiestas,corsas puntos around to choose from till things improve

This is what i did a few years back so i could sell my Saxo VTR car without outstanding finance.

Buy the car from the finace company. Get a personal loan to cover the cost you owe to the finance company. Now the car is now your property. You can now do what you like with it.

You could at the same time arrange your personal loan over a longer period, up 5 or 7 years for the short term, keep the repayments low, then rearrange the term when you are settled more with your finances.

A major bonus is a personal loan is not secured on anything.

If money really is a serious problem' date='get shot,buy a cheap runaround.

[/quote']

The problem with that statement is that it could cost even more to get shot before getting the runaround.

If 10K is still owed and he is offered 8-9K for the car, as well as the current oustanding finance another 1-2K will need to be found, adding to the debt and the cost of buying another car.

Ah.Sounds like paying off the finance via personal loan is step one then.

Got GAP insurance? Torch it.

HTH

PS This is not incitement to commit the crime of insurance fraud, it is a lighthearted, throwaway comment and not to be taken seriously

If its worth what you owe, speak to a few dealers and see if they'll buy it.

For example,

if they will give £9000 for it and you owe £8950, you get a cheque for £50 and the dealer pays the finance off.

if they will give £9000 for it and you owe £9100, you need to give the dealer the £100 difference, then they'll settle it off.

ahh ok thanks alot for everyones ideas. I will get to it right away.

Its better to ask the questions on here, if I asked my dad I know he would say 'well i told you you couldn't afford it blah blah when i was your age..'

Plan of Action:

Firstly i'm applying for another part time job.

I will then see how much I owe on the car,

Then value the car on autotrader, and take it from there.

Ideally i would like to just increase the loan peroid to make payment lower for say the next year, then when finances are more stable, shorten the peroid (like mluton proposed)

Cheers everyone, greatly appreciate your knowledge. Will keep you posted.

Ok to keep you posted.

I still owe £9,305.

I drive a 2006 55 plate Skoda Fabia vRS in Black Magic with 16,000 miles.

Surely the car is worth more than that?

Well on auto-trader some are going from £9999 to £11499 granted with a little less milage, but not much less.

Sorry JimbO, but is that the amount you owe or the amount to clear the loan as they are not always the same.

EDIT:- Spelling.

Well on auto-trader some are going from

Dont re-finance if you're on a part time job - who's to say you will be able to afford it in 8 months time? What if you cant? re-finance again ?

Why not get a full time job rather than 2 part-time jobs ?

Try thinking of it this way - imagine how much entertainment your monthly repayment woul dbuy you. If its about £225 a month you could buy a different "project" car every 3 months or run a reliable cheap car (not a brand new corsa) very easily and have money to spare.

However, if the monthly payments are less than about £200 and you stil cant afford them, you've cut it too tight and really must get rid of the car ASAP or get a full time job.

As a percentage, how much of your monthly income is the car payment ??

Its the amount needed to pay to clear the finance.

Yeah its around £225 a month, plus insurance brings it near £300.

I earn more than this from my one part time job. But since my hours have been cut, not a great deal more than this, enough to pay for fuel each week.

What do you mean by a project car?

I dont want to get rid of the vRS as i love speed. Really dont want to go back to a 60bhp saxo or somthing..

Ask the finance company for a settlemant figure, not what you owe.

That figure will include any penalty and what you owe, less interest over the remaining peiod.

I dont want to get rid of the vRS as i love speed. Really dont want to go back to a 60bhp saxo or somthing..

If you want to keep it, you'll need more money At the end of the day we all have to make sacrifices, but I wouldn't get into debt for the sake of a car ... been there, done that

There are other Saxo's btw - have you considered a VTS

Chris

A guide Price www.parkers.co.uk

Skoda Fabia vRS

1.9 TDI PD (130bhp) 5d 2006/55

Insurance Group 9

Average mileage: 10,000 miles

Cost New ('06) £12362

Franchised Dealer £ 11030

Independent Dealer £ 10640

Private Good £ 10245

Private Poor £ 8275

Part Exchange £ 9750

So whats going to happen when the Fabia needs tyres? or you crash and have an excess to pay?

You need to get a full time job ASAP or sell it.

Get a Triumph GT6

Pug 205 1.6 GTi. More fun than a standard Fabia could ever be.

Dont go for the 1.9 unless its just had an engine rebuild and is un-modified. AT this age they're prone to easy failure.

Speak to the finance company, tell them you would like to renegotiate the term of the finance and see if they can help you out, explain the circumstances to them. They might put up the APR on the amount owed slightly, because of the extended terms you would like. But you could renegotiate it again at a later date.

You haven't got anything to loose, by chatting to them.