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my car repayments

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  • 11-03-2009 9:19pm
    #1
    auditek923
    Registered Users Posts: 313 ✭✭


    i cannot afford my car repayments. i have a 4 year finance loan on it with about 2 years left. i owe 10800 euro still. car is only worth about 11000 anyways. can i give car back or what can i do? i have become unemployed and so has my wife . we are trying to concentrate on our mortgage first and foremost


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    #2
    biko
    Registered Users Posts: 81,220 ✭✭✭✭biko


    Probably better in Motors but you should talk to your bank.
    Are the car and the house both financed by the same bank?

    Have you looked into selling it and paying the loan back that way?


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    #3
    auditek923
    Registered Users Posts: 313 ✭✭auditek923


    we have tried selling it but to no avail at all. its with lombard finance. mortgage is with different company


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    #4
    Zaph
    Registered Users, Subscribers Posts: 47,305 ✭✭✭✭Zaph


    You'll probably get a better response in the Banking, Insurance & Pensions forum tbh.

    Moved from PI, but mods please feel free to move it back here if it's not for you guys.


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    #5
    snowy2008
    Closed Accounts Posts: 468 ✭✭snowy2008


    yes of course you can, i used to work for asset finance in a bank, if you have over half the loan amount paid you can hand back the car and the bank have to accept it, if you arent, you can make a settlement with them and pay the shortfall, it may affect yor icb tho, if your over half paid, your icb wont be affected and the bank lose out, does that answer your question?


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    #6
    auditek923
    Registered Users Posts: 313 ✭✭auditek923


    but if it then goes to auction and sells for 5 k i have to pay the remaining????


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    #7
    snowy2008
    Closed Accounts Posts: 468 ✭✭snowy2008


    yes you do, but at installments you can afford


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    #8
    copacetic
    Subscribers Posts: 16,586 ✭✭✭✭copacetic


    auditek923 wrote: »
    but if it then goes to auction and sells for 5 k i have to pay the remaining????

    not if you have half paid on a hire purchase agreement, if you do you are entitled to voluntary surrender with no penalties.

    You just have to read the agreement. Or phone them up and ask them your options. Be aware they may 'forget' that you have the option of handing the car back with no penalty if half paid.

    http://www.citizensinformation.ie/categories/money-and-tax/personal-finance/loans-and-credit/hire_purchase
    Can a consumer terminate a hire purchase agreement?
    A consumer (the hirer) can terminate the agreement at any time by giving notice in writing to the owner of the goods (the finance house). Consumers should be aware that breaking a hire purchase contract before its normal end date usually involves penalties. The consumer can either:

    pay half the amount of the total hire purchase price (if the total of instalments already paid have not reached that amount) and return the goods to the owner. If the goods in question are damaged in any way, the consumer will be liable to pay for any damage caused. The finance house may issue a notice of costs, but consumers should try to get their own estimate in such cases.
    buy the goods earlier than planned. The consumer can own the goods by paying the difference between the amount already paid and the total hire purchase price. In such cases, there is usually a reduction on the overall amount due as the loan is being paid off earlier than planned. This reduction is calculated using a recognised formula for early loan repayments, however, the amount of any reduction is relatively small.


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