Coronavirus: car finance advice
Could you potentially face a change of circumstance due to the impact of the Coronavirus pandemic? We take a look at some of the implications and your options if you think you may be affected.
What happens if I can’t pay?
#1- speak to your finance company
If you think you may have genuine trouble paying your monthly car finance payments, speak to your funder as soon as you can. Lenders understand the pressures that many customers may face and we anticipate that many will be lenient.
Lenders may offer to re-arrange your finance to enable you to pay in a way that better suits your circumstances and some may even offer a payment holiday or to extend your agreement to reduce your monthly payments. These arrangements will show on your credit file, but given the extraordinary circumstances, lenders for any future credit applications should be able to interpret these appropriately.
We cannot assist you with these arrangements, so you should contact your lender directly. Have a copy of your finance agreement with you to speed up the process.
If you default on your payments, this will affect your credit score & your ability to get credit in the future so it is far better to be honest and discuss your options with the funder.
Can I hand the car back?
This will depend on a number of factors. If you have paid more than 50% of the Total Amount Payable then you may be able to do so, but you will not receive any rebate of payments or interest. You can find out more about ending an agreement early here.
Can I get car finance during the Coronavirus epidemic?
Currently, people are still interested in buying cars and financing them and we are still receiving enquiries. Typically customers are interested in taking advantage of the drop in interest rates triggered by the Bank of England emergency measures and also in the expectation that they might be able to pick up a bargain.
At this point in time, finance companies are still willing to lend. Proving affordability will be more crucial than ever and the situation may change. We will continue to update this page if there are any changes.
The UK government has asked car showrooms to remain closed in response to the COVID-19 epidemic so you will not be able to take delivery of a car until it lifts these restrictions.
We are still able to arrange finance however you will be unable to collect your car under the current restrictions. Under these circumstances, we can organise your finance in advance of collection and get the payment ready to collect ONLY when you are comfortable arranging delivery or collection – we will not pay out a deal in advance as this protects you as our client.