Can I do anything do save my car?

[DMP]

I took out Finance on a new car 3 years ago, paid a deposit, and was told there would be a lump sum at the end. I could pay this lump sum off, or trade the car in for a new one and the amount left would be written off, or give it back and owe nothing. My aim was to continually trade it in, thereby getting a new car every 3 years and paying the same, and not having to worry about MOT etc.

However, last September I had to enter a DMP with CCCS (long story), and was allowed to carry on paying for the car. I told them this would be ongoing as the car would never be mine, and it was accepted. My 3 years are up the end of this month, so I went to trade it in and guess what? yes, was refused the finance. I now have the £3000 lump sum to pay, or just give it back and not have a car.

My monthly sum is safe and guaranteed for this payment, but the car company wouldn't accept that. CCCS assumed this was HP and told me I would have no problem. It was miscommunication, I am not blaming them obviously, but when I entered the DMP I felt confident that the car would be safe. Have I any rights? as initially I was given a choice, therefore I did not save anything to pay off a lump sum. If they took the car back I have no deposit for HP (assuming I can get that). Help! time is running out and I need a car for work.

Thank you

[Reviva UK]

Instead of trading in the car have you thought of speaking directly to the finance company and taking the balance 3k over 24 or 36 months. You may find that this is possibel

[DMP]

Thank you for replying.

I couldn't get £3000 from anyone, and if so, could only pay them pack the same amount I am paying car finance at the moment, which would make it a couple of years before they get the full amount.

However, someone has offered to take the finance over in their name, and this is ok with the finance company. The car would still be registered to me and in my name etc., they will only pay the monthly direct debit and I will have my direct debit paid to them instead of the finance company, so they are never out of pocket. In theory this is great and the person knows me well and there is no risk problem.

My concern is, the finance I have on my car means I can never pay off the lump sum so the car continues to change every 3 years. Even though CCCS are aware of this, am I liable for any 'flack' off creditors? I suppose it can be likened to permanent leasing.

Another crucial fact for me is, I really do not want to borrow any money. Paying this way, means I pay as I go and if I can't pay the car is taken off me.

Many thanks
Pam

[Reviva UK]

It is a difficult one as you obviously need the car for work.

Did you try the same finance company that you are already with as sometimes they will almost "roll over" the agreement so you carry on paying

[vickir]

It sounds like standard HP with a balloon payment (done by finance companies to keep your repayments lower), the £3000 would be a GFV (guaranteed future value), i see no reason why the original finance company would not be prepared to re-finance your balloon payment or modify the original agreement -

[DMP]

You are right, it is a GFV, and when the car is changed that just gets written off. The car you give back always has equity, therefore you always have a deposit for the new one. I struck a great deal whereby I would only be paying exactly what I am paying now. When I got declined, they suggested my husband's name go on the paperwork but it would still be registered in my name, which was a real relief. However, CCCS refused to let this happen, as the monthly payment would be ongoing and creditors would not like that. I can understand this from their point of view, but in the long run means a lot more expense for me.

The two options CCCS gave me were to return the car (which means I won't have one) and get one on HP (can you imagine the price with no deposit? plus the fact I am on a DMP) - OR - to borrow the £3000 to pay it off! I only started my DMP in December so haven't enough to pay the tax that is needed, or the MOT (I need a new tyre too), so it was suggested I borrow that too!

Don't get me wrong, I am not having a go at CCCS, they are brilliant and I have had a lot of support from them, and thankful for all they have done for me so far. But the best option out both is to borrow and I really, really did not want to do that. Anyway, I have borrowed and it will take about 2 years to repay (although this has been incorported into my budget as Car Finance). I thought my days of borrowing were over, and I feel I have taken a step backwards

I hope if anyone already is on PCP Passport, they realise the consequences if they go onto a DMP.

[MelanieGiles]

Can you give us some idea of your total debts and the amount you are paying each month to the CCCS. Are you also a homeowner.