I have a relatively bad credit rating – but managed to buy a car on finance (Although regretfully, was with UCan), back in August 2007. However, my payments are extortionate – and it’s extremely unlikely / nigh on impossible, that I’ll be able to get a loan from my bank or anywhere else for that matter – to clear the finance, and pay a much lesser fee. Am I stuck in this agreement now for 4 years? :(

Thanks,

Mike

mcscoobs:

Am I stuck in this agreement now for 4 years? :(

Pretty much I'm afraid. Unless it is a hire purchase agreement with termination rights written into it. This is where you can end the agreement and the finance company will be entitled to the goods (in reasonable condition) and half of the total amount payable on the agreement.

Even if you could get a loan with a lower rate, it would probably defeat the object because it would cost so much to settle your existing loan and you'd end up paying reasonable interest on top of crappy interest.