Finance Problems

[d-i-l-l-o]

A friend of mine is struggling to keep up the payments on her clio. It is a March 2008 197 in Blue. It cost £17K brand new and has now done 10,000 miles. I did a valuation thingy on the internet and it said it was worth about £10,450 now. Is this about right? She has just under £12,100 outstanding on the car. Any suggestions as to what she can do? They won't extend her term.

 

[Dyewitness]

any way she can surrender the car?

 

[AK]

Would still have to pay the balance would she not Ally?

 

[Craig]

try and sell it for as much as possible private the pay the finance maybe?

 

[Martin_S]

Take out a new loan over a longer term to cover the remaining finance?

Although if she's struggling as it is, then maybe selling the car is her best option.

 

[Ickle 110]

taking out a loan to pay off the finance would help. loan could be re paid over a longer period so payments would be less.

 

[Dyewitness]

try and sell it for as much as possible private the pay the finance maybe?

dont think she could do this as guessing its on hpi, i am though sure push come to shove finance company will do what they can to help

 

[Dyewitness]

another idea, post on renaultsport.co.uk forum, some dealers on there and one may have some ideas

 

[172Ben]

Is she struggling for a reason? Are they to high, lost job? etc

Taking out another loan IMO is not the answer.

Solving possible debt with more debt if you get what im saying....

 

[p4cks]

It's an unfortunate position that your friend finds herself. It would be highly unlikely that the finance company would take the car back, they will just lose money on it so it's not cost-effective for them.

I'm afraid that leaves her with very little options in reality. She can't sell the car as the outstanding finance would show on an HPI check, and even if she could she would not be able to clear the full outstanding finance.

Now the only thing I can think of doing is; your friend getting a loan for the shortfall amount (in this case it would need to be £1650ish) then selling the car privately, armed with a 'no further interest' from the finance company telling any potential buyer that once the balance of the finance is paid, they will relinquish any connection they have with the car.

Either way, I wish your friend luck.

 

[d-i-l-l-o]

Thanks for all your ideas! Its pretty grim but im sure things will work out, they normally do!

 

[DMS]

Might be worth selling the car to clear the finance. I realise that a HPI check would show that the car is on finance, but if it's traded in at a main dealer they will normally be able to pay off the finance with the money they give you for it. They would normally ask you to pay them the remainder of the finance to take it off your hands, then settle the finance on your behalf.
To pay the remaining finance off she could take out another loan (which would be for a smaller amount, and possibly on different repayment terms).
That way she'd lose the car, but be paying off the remainder at a much more affordable rate.
Sounds like the only easy way out to me (if any of that makes sense?)