Back in June 2007 i got a Ford Focus on finance from Welcome Car, i now currently cant afford to run the thing anymore due to fuel costs being damn expensive and i'm paying £208 a month for it which is also crippling me, with everything else i have going on now i am in risk of being very very badly in debt and i really need to reduce my monthly outgoings otherwise i will end up in severe trouble, is there anyway i can get out of this contract or even just "downgrade" my car to a smaller one? i have to do something!

There are three possibilitites here Wilco as presumably having the funds to settle the agreement is not one.

Firstly, check whether you have early termination rights on the agreement. Dig out your paperwork and if there are any rights like this written into it, it will be near the section entitled "Reposession - your rights". If you have these rights then you can hand the car back as long as you have paid half of the total amount payable and have taken reasonable care of the goods.

If I'm honest, I can't see this being the case because Welcome charge so much for the goods and so much interest that they don't want half a massive debt and a car worth naff all to dispose of. I suspect you are on 'personal loan terms'.

Second option is to trade your car in for something way cheaper. Use your car as a lever against the settlement figure and see where you end up. Again, because of the price of goods and the interest rate, I suspect you will be in negative equity which will bump your payments back up to the level you are now.

Third is to keep the car and try to find something else in your life which is easier to cut the cost of.

Not the news you wanted to hear I suspect but this is the risk taken when taking out an agreement with companies like Welcome Car Finance.

Can you tell me the reg, mileage and model of your Focus - how long your agreement is for and how far into it you are...?

---

You gotta tie yourself to the mast my friend, and the storm will end.

Hi, thanks for the reply

Yea there are early termination rights when i reach the sum of £4,500 or something in that region

i would love to keep the car, nothing wrong with it but there is nothing else i can or havent already cut back on and as i say now that petrol is expensive and car tax has gone up, i cannot keep this car without getting myself into trouble which i could so easily avoid

The Reg is 53 model Ford Focus Automatic 1.6v it's done roughly 17k now, my agreement is 48 months and i took it out in last june so i'm now 9 months into my contract.

I would say that the option of trading in isn't very likely - although possible. Reckon you will need to give them about 8 grand to settle the agreement and I'd be surprised if your car is worth 4 in the trade. Your only other solution would be to perhaps get a loan so you can pay up to the early voluntary termination point - hand the car back and buy a bike or economical cheapie car with the rest...

---

You gotta tie yourself to the mast my friend, and the storm will end.

You and the rest of the country! Try swapping for a smaller cheaper car although it will cost you a packet to do so. All the can't get credit companies really stripe you so you mighte be better to tough it out