Here's how you can delay your car finance payments and freeze the interest for two months

Friday, 10th April 2020, 12:33 pm
Updated Friday, 10th April 2020, 12:33 pm

If you're a motorist struggling financially during the coronavirus crisis, you may be able to delay your car finance payments with frozen interest.

With thousands of people across the country taking pay cuts, being furloughed, or losing their jobs all together, many will find themselves struggling to keep up with various bills - including car finance payments.

What car companies are offering customers

It's estimated that around 6.5 million vehicles across the UK are financed using leasing deals - long-term car rental agreements that offer low monthly repayments.

Now, motorists are finding that they're struggling to keep up with monthly payments.

In response, several car dealers have begun to roll out support in order to prevent thousands unable to pay from handing back their cars.

Ford told The Sun newspaper that the car company would support customers with reduced payments, payment extensions and payment holidays for up to three months.

Volkswagen said that customers will be allowed a "breathing space" of up to 60 days, during which it won't chase payment or allow you to rack up fees. The firm also said it would consider extending the time period for paying off debt.

Toyota said drivers may be offered interest-free payment holidays or may be able to reduce their monthly payments.

Hyundai and Mercedes-Benz told the paper that customers should get in touch if they needed support, but haven't clarified what support may entail.

Banks encouraged to help those who are struggling

The Financial Conduct Authority (FCA) last week encouraged banks to offer three month payment holidays for credit card customers alongside free £500 overdrafts.

In response, several banks - including Santander, Lloyds and HSBC - have increased their free overdraft offering.

However, the proposals put forward by the FCA didn't include car finance deals nor payday loans.

If you are worried about money or struggling with debt, the Citizens Advice Bureau has some useful advice on a variety of situations, plus further resources on where to get help.