Unable to keep Up With Payments

[cb80]

I have a car on finance, I cannot afford to pay what they want and I have been told that if I tell them what I can pay, they have to accept it. Does anyone know if this is true??

[johnnybriggs]

To some extent. What I would prefer you do is to make the payments you feel you can afford (even ifyou want to give the car back). They won't send the money back to you.

There are some very complicated hp agreements out there with different clauses based on how much you have repaid. I suggest you speak to a debt advice company such as the CCCS.

[Oneeyedvic]

No it is not true. They do not have to accept - you are in default of your agreement. If you are in the UK and have paid more than a third of the total due then they have to get a court order before they can repossess the car.

If you have not paid a third (including deposit) then they can repossess immeadiately. If you have paid more than half the amount, then look into handing the vehicle back if you cannot afford the repayments.

Bear in mind that the longer you take to pay it back, the worse your credit rating will be.

On the other hand, the finance company will not actually want the car back (unless it is realtively new and has equity ini it). This means that they will be willing to negotiate a lower monthly payment with you so that they don't have any hassle. BUT as I said, this will affect your credit rating.