my car finance

[sco789]

i have a citroen saxo 1.4 i am paying �109 a month on it, at the minute i owe �4000 and the car is only worth �2500 how can i sell the car and get rid of my debt i am really desperate as every month my bank account keeps standing at �0 because of the payments and i dont know what to do and no one will help me.

[Kathyan]

This may help

http://www.consumerdirect.gov.uk/after_you_buy /money_and_credit/hire-purchase/

[plowter]

If those figures are correct then you'll be paying off your debt over 3 years.

Was this a loan or a hire purchase agreement? Have you checked the small print of the agreement to find out what it would cost to terminate your contract?

In addition to Kathyan's link to Consumer Direct, you might find it worthwhie to read over this National Debtline factsheet. Both Consumer Direct and National Debtline offer free helplines.

If you've got other debts it might be better to look at your whole financial situation. You could make an appointment with a money adviser at your local CAB.

Good luck.

[alankeith27]

I had a similar experience with 2 cars that i've owned.

This normally happens with high interest finance companies, and they sell you a product caled GAP insurance to cover this shortfall if you write the car off.

The insurance company will ONLY pay the current market value (�2500), therefore, the GAP insurance kicks in and pays the difference.

Check your agreement and see if you have GAP insurance. Mines amounted to about �30 a month of the payments.

I'm not sure, but I think you can cancel the GAP insurance and therefore lower your monthly payments. But thats risky if you are still using the car.

The way out for me for car number one was that a close friend was looking for a car and he agreed to take my car payments over in full, provided I agreed to sign the car over to him once the payments had been completed. This is not technically legal, but as long as he insured the car correctly, then not technicaly illegal. The finance would be paid off with the cheque from his insurance company and the gap insurance being paid as part of the finance payment woud cover any shortfall.

The way out for me with car number two was that I had a genuine accident and all the insurances paid out as they should and we all were happy.

If you know someone who would help you out financialy (parents?) they might be in a position to pay off the finance. This would let you sell the car pay them back the 2.5k cash and then pay them the rest over the course of a year or two?

Sounds like your desperate mate, dont be too humble to ask for help from your family. You'd be surprised how much they will do to help.

hope it works out.