Credit, Collections & Insolvency News
Coronavirus has left leaves millions of drivers worried about cost of their car finance, with 1.9 million motorists concerned about making their car finance payments.
The research by GoCompare Car Insurncefound that 2.9 million drivers are worried about affording their car insurance, whilst 3.2 million drivers are worried about affording to get their car serviced,
The coronavirus lockdown has left many households living on significantly reduced incomes. As a result, millions of drivers are struggling to meet the cost of running their car, while a significant minority (4% = 1.3 million) say they will be forced to sell their vehicle.
Car finance schemes including leasing, personal contract plans (PCP) and hire purchase arrangements are increasingly popular ways to buy a car. As a result of the lockdown, 1.9million drivers (6%) worried that they would no longer able to afford their car finance arrangement.
Commenting on the research findings, Lee Griffin, CEO and one of the founders of GoCompare, said “The coronavirus crisis has already had a huge impact on the economy and people’s earnings, and many people are understandably concerned about meeting everyday bills, including the cost of running their car.”
“When money is tight it can be tempting to delay or skip servicing or to put-off repairs. But this can be a false economy. If left too late, some problems can become more expensive to repair or can make the car dangerous and illegal to drive.”
“If you are struggling with the cost of car finance or insurance, you should contact your provider. They’ll talk you through the support available and may be able to help by agreeing to more affordable payment terms or by arranging to defer payments. The UK’s finance regulator, the FCA, has now confirmed that lenders will have to give payment breaks of up to three months to struggling car finance customers. So, don’t miss a payment or cancel a direct debit without first talking to your provider.”
“If you miss an insurance payment without first notifying your provider, they may cancel your policy, leaving you without valid insurance. Driving without insurance is illegal and could land you a fixed penalty of £300 and six points on your licence. If the case goes to court, you could face an unlimited fine and be disqualified from driving. The police also have the power to seize, and in some cases destroy, the uninsured vehicle.”
