Can’t Afford Your Car Finance? Here’s how to get out

Struggling with car finance payments? You’re not alone. Whether it’s the squeeze from the cost of living or an unexpected turn in your finances, keeping up with those monthly bites can sometimes feel like running a marathon with a backpack full of bricks.

But here’s the good news: you’ve got options, and none of them involve simply tossing your keys into the finance company’s letterbox and walking away.

At BigWantsYourCar.com, we’re here to help. Let’s take a look at your options for dealing with your outstanding balance.

Key Takeaways

• Common reasons for cancelling a car finance agreement
• Will late car finance payments affect my credit score?
• Can I give my car back to the finance company?
• What are my options when I can’t afford my car payments?

Common reasons for cancelling a car finance agreement

There are many reasons people cancel their car finance agreement. These include changes in your financial situation, such as job loss, unexpected expenses, or the cost of living hikes. When you’re faced with these challenges, keeping up with monthly payments on a finance agreement can suddenly become very hard.

But remember, you’re not alone. Life happens. Many people just like you are trying to find ways to exit their contracts without it having a negative impact on their credit history.

Will late car finance payments affect my credit score?

Unfortunately, yes. Late finance payments can lead to a default notice and a late payment fee, which the finance provider might report, causing a dent in your credit history. This action can tarnish your credit rating, making future finance deals harder to get and potentially leading to an arrears notice.

Can I give my car back to the finance company?

Absolutely. This is known as voluntary termination. It’s a lifeline in your credit agreement that lets you return the vehicle to the finance company if you’ve paid off half your loan balance. It’s a way to dodge a negative impact on your credit report without fully settling the outstanding balance.

What are my options when I can’t afford my car payments?

When monthly repayments start to feel overwhelming, there are a few escape routes to consider:

Refinancing for cheaper monthly payments

Refinancing can recalibrate your repayment plan, aiming to reduce your monthly payments by extending your loan agreement over a longer period of time. It’s a practical option if you’re looking to ease your financial situation without racking up more outstanding debt or losing your car.

Part-exchange for a cheaper car

Downsizing to a more affordable vehicle can also alleviate the pressure of finance payments, lowering your monthly repayments and making your finance deal more manageable in the current cost of living crisis.

Budgeting for other expenses

Sometimes, the answer lies in tightening the belt elsewhere. A savvy budgeting strategy can free up funds for your car finance payments, helping you avoid late payment fees and keep a healthy credit rating.

Sell to BigWantsYourCar.com

Stuck between a rock and a hard place with your car payments? If the thought of refinancing makes your head spin, swapping your ride feels like stepping back and squeezing pennies isn’t cutting it; there’s another path worth considering.
Enter BigWantsYourCar.com.

We’re not just any old car buyer; we’re your escape artist from those tight finance agreements. Our speciality? Taking cars with a bit of financial baggage, working directly with your finance provider to clear the air (and the debt) and managing all that pesky paperwork that nobody likes to deal with.

Facing a financial squeeze doesn’t mean you’re at a dead end. Tweaking your repayment plan, opting for a more wallet-friendly vehicle, or handing over the reins to BigWantsYourCar.com are all ways to shift gears and navigate out of tricky financial waters.

All you have to do is send us your details and some photos, and a fair, free car valuation will be sent to you in seconds. With us, you can turn your car worries into cash.