Who is my position

[staylorhome]

I did have a well paid job and a secure job. On this we bought a W203 C class estate.
Now i have lost my job and we now owe more on the car than its worth

We owe 16K and looking at the markey value worth 13K

 

[television]

I can understand how you fell about negative equity and no job, that must be the worst that can happen, and yes I have a friend with the exact same problem

 

[RoyDavis]

Not good at all!! The only thing to do is if your looking at getting rid of the car and debt i would say sell the car now, reduce your debt to 3k and yes with nothing to show for it but the value will only keep dropping

 

[Rappey69]

Sorry to hear about your circumstances.
Repossesed cars are at an all time high and growing. they go to certain auction houses where they are sold without reserve and fetch a pathetically small amount of their true worth.
I too would suggest selling it now for what you can or face a much bigger loss if the worst was to happen.
the C.A.B will be able to advise you on what to as the car will be marked on hpi as having outstanding finance.

 

[mercmadjim]

Not good at all!! The only thing to do is if your looking at getting rid of the car and debt i would say sell the car now, reduce your debt to 3k and yes with nothing to show for it but the value will only keep dropping

Sorry to disagree Roy, but Staylorhome paid K16 for his car, and that is what it is worth to him, if he keeps it he does not lose any money, if he sells it he loses 3 grand, its a bit like houses, they are only worth less, if you are wanting to sell it, if you are not selling then it does not matter what it is valued at.
Apply what I call the Farmer logic........a few years ago I knew an old farmer, and in one of his yards he had an old Foden lorry, not roadworthy, rusty, flat tyres etc, I asked him why did not sell it for scrap and maybe put £100 in his pocket, he replied that he bought the lorry in 1960 for £500, if he sold it for £100 he would lose £400, where as if he kept it he would lose nothing.....that is what i call the farmer logic.
So Staylorhome sorry to hear about your troubles, but keep and enjoy your car and by doing that you are not going to lose 3 grand.

 

[kth286]

So Staylorhome sorry to hear about your troubles, but keep and enjoy your car and by doing that you are not going to lose 3 grand.

Yeh - keep the Mercedes and stop paying the mortgage instead - and lose your home ?

Very logical (not) !!!!!!!!!!!!!!!!!

 

[mercmadjim]

Yeh - keep the Mercedes and stop paying the mortgage instead - and lose your home ?

Very logical (not) !!!!!!!!!!!!!!!!!

Er, there is no mention of mortgage in original post.

If it is between paying the mortgage or keeping the car, then yes mortgage is paramount, you are absolutely right.

 

[carabind]

forget the morgage, what about the finance on the car? How can he pay that without a job?

 

[Jay Gee]

forget the morgage, what about the finance on the car? How can he pay that without a job?

Exactly,this is the dilemma the poor guy is in.Sell and lose £3k for certain,or hang on in the hope that something else comes along pretty soon.

 

[Juddian]

First of all i am no expert but i have a thought.

Only the OP knows his potential prospects of re employment, if he can see a light at the end of the tunnel would it be worth negotiating with the finance co to see if they can reduce/suspend the payments temporarily.

It may well be in their interests too, as they stand to make more from agreed finance than a dead loss of a cheap car at the auction.

Thats what i would do in the same circumstances and i have the greatest sympathy with the OP.

 

[JEZ.S320L]

I'm afraid that this situation is going to beome more and more common. We all have our own thoughts on how to minimise the financial exposure to the situation, but only staylorhome can make the final decision. Good Luck staylorhome. We all hope you find employment soon - There, but for the Grace of God, go a large number of us

 

[roofless]

ask for the finance settlement figure it's often lower than the sum you owe to clear the dept early

 

[television]

On a brighter note,second hand cars cannot stay at the level they are now, as it would never be viable to buy a new car, they will go back up, if only we knew when

 

[Jay Gee]

On a brighter note,second hand cars cannot stay at the level they are now, as it would never be viable to buy a new car, they will go back up, if only we knew when

Yes,very valid comment,backed up by the opinions of Quentin Willson and Glass's Guide

 

[paul c]

The moral of the story is never buy expensive cars on finance if you cant pay it of if you need to in the event of a problem like this,thats why we are were we are.

 

[JEZ.S320L]

The moral of the story is never buy expensive cars on finance if you cant pay it of if you need to in the event of a problem like this,thats why we are were we are.

Houses are generally even more expensive than cars. Taking you statement further, how many people would be in a position to pay off their mortgage if they suddenly lost their income? This recession was started by Banks lending on property in the sub-prime markets - NOTHING WHATSOEVER to do with cars.!

 

[100%Bitch]

If you are 1/3 of the way through your payments your lender may well be able to come to an arrangement with you without harming your credit rating. Sometimes you can even get a payment holiday of 3 months or something.

Best advice is always to talk to your lender and see what they can do to help.

 

[paul c]

TRUE but you do not need a Mercedes when you can have a Fiesta you do need a roof over your head .

 

[roofless]

for a minute i thought dragon was back

 

[JEZ.S320L]

TRUE but you do not need a Mercedes when you can have a Fiesta you do need a roof over your head .

staylorhome has never mentioned his home being at risk.!

Do you know anyone called 'Dragon'?