Free Guide Download

Payment difficulties

What to do if you are struggling to meet your payments?

It’s important to always choose a finance plan that you can comfortably afford to repay, but if a change in circumstances leaves you struggling, getting the right information quickly can make the process much easier.

Firstly, it’s important to speak to your finance provider as soon as possible, as the earlier they know about the problem, the easier it will be to solve. You may also benefit from contacting your Local Trading Standards Department or Citizens Advice Bureau, who will offer you free, impartial information to help you get back on track.

Until then, there are a few things you might want to consider:

Don't stop making your repayments altogether
No matter what your circumstances, stopping your repayments entirely is never a good idea. The contract that you signed at the beginning of your agreement is legally binding, so ignoring the problem won’t make it go away. Instead, you’ll be faced with late and missed payment charges, increased interest rates and even admin charges. You might even have your car repossessed or have bailiffs come knocking at your door.

Swap for something cheaper
One solution could be to trade down for a more affordable car. This means taking out a loan to cover the full amount still owed on your initial loan, plus whatever extra is needed for your new car, which all helps to lower your monthly payments. This helps to ease any immediate pressures on your cash flow, but you’ll still be paying more for a car of lesser value, so you should be sure that it’s what you really want before committing.

Selling up
If you can’t afford to run a car at all (or maybe you no longer need one), then simply selling your car might be the best option. One important thing to bear in mind is that your finance company still owns the car, so you’ll need to make sure you consult them before making any decisions.

Handing the car back
If you’ve chosen dedicated car finance rather than a personal loan, your agreement will give you an additional option to hand your car back. This requires a certain proportion of the car’s value to have already been repaid, which generally equates to around two thirds of the total price, and for all payments so far to have been paid on time.

 

Dealers usually earn money on the finance as well as the car, so it’s a myth that you’ll always get a better deal a… https://t.co/lSx4QpmEkG.

16 Aug 2018

Don’t be daunted by car finance. The first step is to do your research and work out how much you can afford to pay… https://t.co/7e2IUYF37P.

13 Aug 2018

By comparing like-for-like plans on different products, you'll make sure you're choosing a deal you can afford. Fo… https://t.co/CIDOSWbZd7.

07 Aug 2018

What is Car Finance Made Simple? Just simple, impartial information that cuts through the jargon. Find out more:… https://t.co/dZPvbyrCow.

02 Aug 2018

The bad news? Car finance can be confusing. The good news? It doesn’t have to be. Get all the information you nee… https://t.co/O2tr2Dy6xB.

31 Jul 2018

It’s bank holiday!!! Make your hungover Monday productive and find the car finance product that will help you get t… https://t.co/D9G90hsSR8.

07 May 2018

}