Problems making car repayments

If you are having problems making your car repayments you have several options. These depend on what type of finance agreement you have. See the tabs below for details on the different types of agreements.

Read our three-step debt action plan to see if you can get your finances back on track.

If you are experiencing difficulty making your repayments and don’t know what to do, you can get help from the Money Advice and Budgeting Service (MABS). There are also other organisations that can offer you support if you are in emotional distress, including the Samaritans.

PCP and hire purchase

With PCPs and hire purchase (HP) agreements, you don’t own the car until you have made the final payment. The finance company owns the car until then.

If you are having difficulties, you may be allowed to sell the car to pay off what you owe, but you will need to get permission from the finance company. You may also be able to end your agreement using the ‘half rule’.

Personal loan


If you took out a loan to buy your car then you own the car from the start. So, if you get into financial trouble, go back to your lender and explain your situation. Ask them to restructure the loan agreement, so that you can afford the repayments, but be aware of any extra fees and interest. You also have the option of selling the car and using the proceeds to pay off the balance of your loan, or part of it.

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