What happens if you get a car on finance and lose your job?

If you get a car on finance and lose your job, your repayments won’t stop automatically. Contact your lender straight away before missing a payment. Ask about payment breaks or reduced terms. If you’ve paid 50% of the total amount, use your legal right to return the car through voluntary termination. You can also refinance or sell the car if the value allows. Missed payments lead to repossession and harm your credit score. Don’t wait. Take control early. At Carplus, we’ll guide you through your options and help you move forward with confidence.

Can you pause or reduce car finance payments?

Yes, you can reduce payments, but act fast. Contact your lender as soon as possible. Tell them your income has changed. Most lenders offer payment breaks or reduced terms for a short time. Ask for a clear breakdown of costs. Interest may still build during this period. Make sure you understand how this affects your total repayment

If a full break isn’t possible, ask to lower your monthly payments. And the lender might extend your term to spread the cost. Always get the new terms in writing. Missed payments hurt your credit score.

Voluntary Termination: Can you give the car back?

Yes, you can give the car back. This is called voluntary termination. You must pay at least 50% of the total finance amount (check your agreement for the exact figure). This includes interest and fees.

The car must be in good condition (no major damage). You hand it back and walk away. You won’t need to make more payments. It won’t damage your credit score, but lenders will see it on your file (some might ask about it in future).

If you’re struggling now, don’t wait. Talk to us at Carplus. We’ll explain your options and deal with the lender for you.

Can I sell a car on finance?

You can’t sell a car on finance until you settle the agreement. The lender still owns the car. You must ask for a settlement figure (the total you owe). Once you pay this, the car becomes yours to sell.

If the car’s value is higher than the settlement figure, use the sale to clear the debt and keep the difference. If it’s lower, you must pay the shortfall yourself (called negative equity). Most private buyers won’t buy a car with outstanding finance.

At Carplus, we help you check the figures, speak to the lender, and explore better finance options if needed

How job loss impacts your credit score?

Losing your job doesn’t lower your credit score, but missed payments will. One late payment shows on your credit report and pulls your score down. That makes it harder to get finance later.

Keep missing payments and the lender can issue a default. That stays on your file for six years. If the car gets repossessed, it looks worse. Lenders see you as high risk. You’ll get fewer offers or much higher interest.

Act before things go that far. Speak to your lender and explain what’s happened. Ask for a payment break or lower monthly terms. Or look at refinancing.

And if you're not sure what to do, talk to us at Carplus. We’ll check your agreement, speak to the lender, and help you protect your credit.