Car Finance Chaos EP96

#1
Hello, not sure whether I'm posting in the correct place but I'm wondering if anybody could help?!



I can no longer afford my car finance and insurance together anymore as I recently made a claim which has caused my insurance premium to rocket.



I have negative equity on top of my car finance and my question is...



how can sell the car to settle the amount of finance which it is worth, and then transfer the negative equity to a cheaper car so my monthly outgoing is cheaper?



Or would i have to take out a bank loan to pay all of the finance in one go?



As my insurance claim was made last month (i also lost my no claims) whatever car I get is going to have high insurance but I can afford it if my finance isn't as costly as it is now.



Hope I made sense!

#2
What type of finance ? How long have you had the car ? How much is it worth, how much to settle ?



There may be options to VT. Taking a bank loan to pay off the finance is one option as is trading in, the dealer will pay off the finance and may roll up the negative equity into the new car but this could work out more expensive than keeping the current car.



Not enough info in your post really, more questions than answers

#3
Sorry I didn't want to babble too much :P



The cars current market value is £15,500 but as it had a new engine fitted by BMW at one of their garages I'm not sure whether this could raise its value.

I bought it mid-January and made my claim Feb 9th, I drove it through a ford causing the engine to cut out whilst in the water. Due to having the car not even 3 months VT is out of the question.



I've previously had cars on finance and my settlement figure would be around £22,000.

I have no idea what to do!

#4
Might be worth checking if the existing finance company will allow you to pay the finance off over a longer term (say five years rather than three) which should lower the monthly repayment and so reduce your outgoings. Then you could part exchange it in the years to come for another car if your finances improve. There's no guarantee that you'd be successful in getting another loan (two applications in a few months)

#5
If by losing 2 years NCD is pricing you out of this car then you were pretty tight on your finances.





You will find the cost to renew your insurance with 2 years less NCD will be a LOT less than trying to get out of your current car finance agreement with the numbers your talking about.





Maybe get a couple of credit cards, buy your insurance on one of them and balance transfer the amount at a 0% deal and try and overpay to clear it before the next years insurance is due.





Do that for 2 years and you should be in a better position to afford the car and the insurance, once you hit your 50% mark, VT the car and buy one you can afford.

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