car finance

tv3

Just trying to get some advice if anybody can help.My younger brother bought a car for 20 grand in may of this year.He took it out on finance but thye problem is he cannot afford the payments and is sure now that if he can get out of it he will.Now the garage has a cheaper car less than 6 grand that he would buy if he could.But how can he "if" he can get out of the finance???

copacetic

what do you mean get 'out' of the finance? default on the loan and not pay it back?

Vanbis

tv3 wrote: »

Just trying to get some advice if anybody can help.My younger brother bought a car for 20 grand in may of this year.He took it out on finance but thye problem is he cannot afford the payments and is sure now that if he can get out of it he will.Now the garage has a cheaper car less than 6 grand that he would buy if he could.But how can he "if" he can get out of the finance???

If he was to sell the car private he would just the payment from that to pay off the finance outstanding with the bank or he could speak to the garage and see what they but i think selling it private would be best. Then if he gets a new car he just get a new finance loan out on that.

tv3

The problem is the car is valued at about 14 grand now and thats on private...also he would find it v v hard to sell it private and then clear finance as nobody would buy it with finance

mikemac

My advice is pay off this finance deal if you can.
You can usually get a cheaper loan from the bank or credit union then these finance deals.

Now I don't know what rate your brother is paying but if he can get a cheaper rate from a bank and there are no penalty fees for paying off the loan, then check to see if money can be saved.
Plus with a bank he can agree the term and monthly payments.

He only has the car 5 months. On a 20k car he is going to take a hit if sells it, the wheeler dealer experts here could advise better on that then me.
I know more about the finance side.

My own opinion: A car is a depreciating asset and I'll never buy a car that I can't buy for cash.
But then I'm not an enthusiast and see cars as metal to get me from A to B. Sorry for going offtopic.

tv3

The problem is he cannot get a personal loan at the minute prob because of the loan he just got in may

pyramuid man

Well afaik, if he misses too many payments, he will have the car reposesed and his credit rating will be destroyed and he will find it very difficult to get a loan or finance if he defaults.

tv3

Ye but i dont think anybody will buy the car with finance on it also it cost possibly be illegal

copacetic

someone may buy it but will want to pay the money direct to the finance company not him, he would have to cover the difference in what they pay and what is owed on finance.

tv3

Ye but i certainly would not buy a car without checking the history of it so would imagine others would be the same.Any way of contacting the finance company and see wht they say the options are??

copacetic

tv3 wrote: »

Ye but i certainly would not buy a car without checking the history of it so would imagine others would be the same.Any way of contacting the finance company and see wht they say the options are??

thats what I was saying they would check history and insist paying direct to the finance company with him paying balance at the same time.

what so you mean any way of contacting the finance company? just phone them up.

tv3

But if the car is worth 15grand lets say and there is 18000 owing on it how do he work that out??

copacetic

tv3 wrote: »

But if the car is worth 15grand lets say and there is 18000 owing on it how do he work that out??

again, he pays the 3000 difference to the finance company.

tv3

ye but he dont have 3000

copacetic

tv3 wrote: »

ye but he dont have 3000

well thats his problem really, he bought a car with what sounds like full finance that has now left him in negative equity as he couldn't afford the repayments and he has had to endure the worst part of the depreciation.

He signed the deal and he knew how it would work. Unfortunate for him, but he owes the money, and must pay it back. There is no easy way out of it.

Savman

tv3 wrote: »

ye but he dont have 3000

www.jobs.ie

tv3

This is the motor section not the smartarse...then again there is always one isnt there "savdude"!:rolleyes:

Savman

tv3 wrote: »

This is the motor section not the smartarse...then again there is always one isnt there "savdude"!:rolleyes:

He took out finance and cant make the repayments, hardly a heart wrenching story in fairness.

tv3

Nothing good to say then keep your mouth closed:D also il report you for thread spoiling now:eek:

unkel

Let's keep on topic folks

speedfreak

if its a hire purchase agreement then he can hand back the car having paid 50% of hire purchase price with no penalty.

tv3

Ye but i doubt he would after paying 50%:o

orlyice

ok i used to work for a car finance company.

If he sells the car, he will be liable for the remainder of the balance. He more than likely pay an early settlement fee but if he misses a couple of payments even for just a couple of months, he will pay more than that in penalty interest in the payments outstanding so it would be worth his while clearing his finance. once he sells the car he has to close the finance as it is still the property of the finance companys until the fina payment is paid.

nobody in their right mind should take over finance on a car when the finance not in their name, it'll just get very very very messy!!! i've heard stories that sound like they are something off judge judy!!!

the interest rate on hire purchases is extremely extremely high!! and they do not have to put the interest rate on the finance agreement and in most cases they dont!! legally as it is not a loan it doesnt have to be there!!

i have seen first hand the trouble hire purchases are. i have advised numerous friends of mine not to get finance. But thats not going to help your brother now!!!

sell the car and take out a personal loan to cover the remainder and a few euro extra for a cheaper car, he can then spread the repayments over a longer period to reduce the payments. that is providing he hasnt missed any payments and if he has, it'll show on his credit rating and he may not get a loan elsewhere.

sob stories with finance companies dont work!!! if the finance companies offer personal loans, this would be the easiest option and but make sure he checks interest on this loan, they'll catch you there aswell as they know he'll just want to get it sorted. make sure he shops around.

good luck to your brother

meesa

What make and model is the car?......vulture circling:o

tv3

its a 2005 toyota avensis not sure what model...

tv3

orlyice wrote: »

ok i used to work for a car finance company.

If he sells the car, he will be liable for the remainder of the balance. He more than likely pay an early settlement fee but if he misses a couple of payments even for just a couple of months, he will pay more than that in penalty interest in the payments outstanding so it would be worth his while clearing his finance. once he sells the car he has to close the finance as it is still the property of the finance companys until the fina payment is paid.

nobody in their right mind should take over finance on a car when the finance not in their name, it'll just get very very very messy!!! i've heard stories that sound like they are something off judge judy!!!

the interest rate on hire purchases is extremely extremely high!! and they do not have to put the interest rate on the finance agreement and in most cases they dont!! legally as it is not a loan it doesnt have to be there!!

i have seen first hand the trouble hire purchases are. i have advised numerous friends of mine not to get finance. But thats not going to help your brother now!!!

sell the car and take out a personal loan to cover the remainder and a few euro extra for a cheaper car, he can then spread the repayments over a longer period to reduce the payments. that is providing he hasnt missed any payments and if he has, it'll show on his credit rating and he may not get a loan elsewhere.

sob stories with finance companies dont work!!! if the finance companies offer personal loans, this would be the easiest option and but make sure he checks interest on this loan, they'll catch you there aswell as they know he'll just want to get it sorted. make sure he shops around.

good luck to your brother

Just to let you know the interest is under 3000

handbraker

he should see the local credit union they are usually much more sympatric than the banks

ninty9er

Well he's just gonna have to sell at €14k pay the remaining €4k and get a €2k instead of a €6k car to replace it isn't he:rolleyes:

Most Credit Unions would give this type of loan with some savings behind it, or he could go to MABS for some advice.

Realistically, if he can't afford the payments he could

A) Ask the finance company to extend the term (they generally won't break 5 years on a car though so if it's a 5 year deal already that's out)

Get a part time job to pay for the car

C) As above (get a loan for the balance of a sale price)

snowman707

tv3 wrote: »

its a 2005 toyota avensis not sure what model...

he gave 20K for a 05 aventis a couple of months ago?????

I'd bet the dealer arranged the finance.

It is 1 car he will not forget in a hurry,

hope he gets sorted.

tv3

snowman707 wrote: »

he gave 20K for a 05 aventis a couple of months ago?????

I'd bet the dealer arranged the finance.

It is 1 car he will not forget in a hurry,

hope he gets sorted.

Sorry i meant 2007.Who else could arrange finance??:rolleyes:

speedfreak

tv3 wrote: »

Ye but i doubt he would after paying 50%:o

if he hasn't paid that 50% yet he can just pay the difference between what he has paid off already and the 50% amount and hand back the car to the finance co.

tv3

ok cheers thanks

snowman707

tv3 wrote: »

Sorry i meant 2007.Who else could arrange finance??:rolleyes:

his own bank, credit union

most likely they would be better aware of his ability to pay back & he wouldn't be in the sh1t he is now

bostoncommon

If he financed 20k in May his settlement would be a lot higher than 18k his first payments pay the interest on the loan.