Choose your location - England/Wales | Scotland | Northern Ireland
Confidential advice
8am to 8pm Monday to Sunday

Car Payments

Car Payments

If you’ve purchased a car on finance or you’re leasing it for fixed period of time and you’ve fallen behind with your monthly payments, the repercussions can be serious for your credit rating and, depending on the type of contract you’ve taken out, could result in your car being repossessed.

There are a number of different vehicle finance agreements. A popular one is ‘hire purchase’ where you don’t actually own the car until you make the final payment. Until that time, you are effectively leasing it and have the option to buy the car outright at the end of term with what is known as a balloon payment. However, if you fall behind with hire purchase payments, your car can be repossessed due to breaking the terms of the agreement.

If you have paid off less than one-third of the hire purchase price, the car finance company can take back the car without taking legal action against you. If you have paid more than one-third of the hire purchase price, a lender cannot repossess the car without taking legal action against you.

If you took out a personal loan to purchase a car outright, you are the owner of the vehicle and not the loan provider. Your contractual agreement has nothing to do with the car; you simply have to repay the loan over the agreed period of time and interest will be applied. You can always ask your lender to increase the loan term to reduce your monthly payments, or could look to sell the car to pay off all or part of the outstanding loan. However, be aware that falling behind with loan repayments will certainly affect your credit rating and interest plus other fees will be added to the balance.

What should always be noted is that your car finance provider, in most cases, will be receptive to your situation so you should always communicate with your lender. Write to them and explain your circumstances – some lenders will reduce payments for a few months to allow you time to get back on your feet.

If you are based in Northern Ireland and are facing car repayment arrears, regardless of what type of finance you have, we’ll be able to help you. Contact our specialist team at Northern Ireland Debt Solutions for free, confidential advice.

Lawrence O'Hara

Insolvency Adviser

Tel: 028 2132 6269

Why Choose Us?

  • Speak direct with a qualified adviser
  • We do not operate call centres
  • Head office in Belfast - National Coverage
  • Home visits also available
  • Fully regulated advisers and Reputable Firm
  • Helping thousands of individuals since 2010
Our Insolvency Practitioners
are regulated by ICAS or IPA
Home Visits also Available

Contact Form -

    Can we leave a message?
    YesNo
    • captcha

    Here at Northern Ireland Debt solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our PRIVACY POLICY

    Client Testimonials

    Amanda
    Belfast

    After losing my job, I started relying on credit cards and payday loans to get me through the month. As the debt build up, I found it increasingly difficult to keep up with the monthly payments and was hit with late penalties and added interest which only made the problem worse.

    I was ignoring letters and phone calls, and dreading knocks on the door fearing it was bailiffs. This was when I knew I had to seek expert advice. After contacting Northern Ireland Debt Solutions, I felt an immediate sense of relief. Within a matter of days, the phone calls and threatening letters stopped, and I was finally able to move on with my life.

    John
    Portrush

    After burying my head in the sand for many years, I knew I had to face up to my debt problems. I was ashamed of the situation I had got myself in to, and it took a lot of courage to pick up the phone and make that first call to Northern Ireland Debt Solutions.

    My adviser was sympathetic to my problems and I never felt as though I was being judged. He explained all of the options which were available to me and explained how each would work in my situation. While bankruptcy is a big step, I knew it was the best thing for my circumstances. I paid off what I could afford and the rest was written off. Three years on, I am in a much better place financially and able to look forward to the future.

    Our Insolvency Practitioners
    are regulated by ICAS or IPA

    Contact our Office on 0800 0639 250