What Help Is Available If You're Struggling With Car Finance?

by Jamie Burgoyne on Jun 13, 2025 3:57:10 PM

Life doesn’t always go to plan, and if you’re finding it hard to keep up with your car finance payments, you’re not alone. Whether it's due to rising living costs, a change in circumstances, or simply finding your current deal too much to manage, there is help available, and you don’t have to face it alone.

In this guide, we’ll walk you through your options, explain what support Marsh Finance can offer, and point you toward trusted organisations that can help if you’re feeling overwhelmed.

👉 First things first: don't wait to get help
👉 What are my options if I can't afford my car finance payments?
👉 What if I'm classed as a vulnerable customer?
👉 What happens if I miss a payment?
👉 Independent help and support
👉 A few more tips if you're struggling
👉 You're not alone: let's talk
👉 FAQs

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First Things First: Don’t Wait To Get Help

When it comes to money worries, one of the hardest steps can be asking for help, but the sooner you speak up, the more options you’ll have.

If you’re a Marsh Finance customer and you’re struggling, please reach out to us. We’ve helped thousands of people in similar situations and will work with you to find a solution that fits.

👉 Contact our support team confidentially »

A red toy car parked next to a multi-stack of coins, representing car finance and money.

What Are My Options If I Can’t Afford My Car Finance Payments?

Depending on your circumstances and the type of agreement you have, you could explore:

Refinancing Your Car Finance

If your current car or deal no longer suits your needs, refinancing might be an option. At Marsh, refinancing means trading in your current vehicle and starting again with a new agreement on a different, more affordable car.

✅ Suitable if you want lower payments or a more manageable car
⚠️ Be aware: refinancing may affect your credit and increase the total amount paid over time.

Voluntary Termination (VT)

If you’ve paid at least 50% of your total finance agreement and the car is in good condition, you may be able to return it and walk away with nothing more to pay.

✅ A legal right under the Consumer Credit Act
⚠️ You must have a PCP or HP agreement and be up to date with payments.

👉 Read: Voluntary Termination vs Voluntary Surrender, What’s the Difference?

Voluntary Surrender (VS)

If you haven’t yet paid 50% of the agreement but can no longer afford to keep the car, you can return it under VS. You’ll still owe the remaining balance (minus the resale value), but it might help you avoid further missed payments and credit damage.

⚠️ You may still be liable for a shortfall
💡 Useful if you need to exit the agreement and can’t meet the VT criteria

A white figurine inside a small glass bottle with an orange cork, with plenty of replicas behind it. This represents customer vulnerabilirty.

What If I’m Classed As A Vulnerable Customer?

If you’re going through something tough, like illness, bereavement, job loss, or a significant life event, you may be classed as a vulnerable customer. This means you may be entitled to extra support, including:

Breathing space or reduced payment plans
Priority handling with empathy and care
Flexible communication, depending on your needs

At Marsh Finance, we always treat you like a human being, not a number.

👉 Explore: What Counts as a Vulnerable Customer, and What Support is Available?

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What Happens If I Miss A Payment?

Missing payments can feel scary, but here’s what to expect and what you can do about it.

You may be charged a late fee (check your agreement).
Your missed payment may be reported to credit agencies.
If the issue isn’t resolved, your lender may issue a default notice or start repossession proceedings.

That’s why it’s so important to talk to your lender early. At Marsh Finance, our team is here to listen, not judge. We’ll help you explore options like payment plans, VT, or refinancing before things escalate.

👉 Speak to us today, we’re here to help »

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Independent Help And Support

It’s okay to need support beyond your lender. These trusted organisations can help you manage debt, protect your mental health, and rebuild your financial confidence:

Debt Help:

StepChange Debt Charity – stepchange.org
National Debtline – nationaldebtline.org
Citizens Advice – citizensadvice.org.uk

Mental Health & Wellbeing:

Mind – mind.org.uk
Samaritans – Free 24/7 on 116 123
Cruse Bereavement Support – cruse.org.uk

A post it note on a desk with 'HELPFUL TIPS!' written on. A notepad and laptop device are either side of the post it, indicating it is on a desk.

💡 A Few More Tips If You’re Struggling

Review your budget: Even small savings add up. Check out budgeting apps or read: 5 Ways to Take Back Control of Your Finances in 2025
Understand your settlement figure: Knowing what you owe can help you plan an exit strategy.
Check if you’re in negative equity: This could affect your refinancing or VT options.
👉 What Is Negative Equity and How Can You Deal With It?

A chalkboard drawing of a signpost showing 'ADVICE', 'SUPPORT' and 'HELP' with arrows pointing in different directions.

You're Not Alone, Let’s Talk

If you’re struggling, there is support available, and we’re here for you.

At Marsh Finance, we understand that life happens. Whether you need a more affordable car, a payment break, or just someone to explain your options, we’re ready to help, with no pressure or judgment.

👉 Get in touch with our support team now »

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FAQs

If you can’t afford your car finance, the first step is to contact your lender, ideally before you miss a payment. At Marsh Finance, we may be able to help by restructuring your payments, offering breathing space, or guiding you through options like voluntary termination or refinancing. The earlier you reach out, the more solutions we can explore together.

👉 Contact Marsh Finance support »

Yes, in many cases you can. If you’ve repaid at least 50% of the total amount payable on a PCP or HP agreement, you may be eligible for voluntary termination, which allows you to return the car and walk away with no more to pay (provided the car is in good condition). If not, voluntary surrender may be another option.

👉 Read: Voluntary Termination vs Voluntary Surrender, What’s the Difference?

Yes, missing a payment can negatively impact your credit score. If your payment is late or missed entirely, it may be recorded on your credit report and could stay there for up to six years. This is why it’s important to speak with your lender before a payment is missed, support is often available.

If you’re facing illness, bereavement, redundancy, or any major life event, you may be considered a vulnerable customer. This means you may be eligible for tailored support such as flexible repayment plans, breathing space, or specialist communication options.

👉 Explore: What Counts as a Vulnerable Customer, and What Support Is Available?

While there’s no automatic right to pause payments, some lenders (including Marsh) may offer temporary payment deferrals or breathing space, especially if you're in financial hardship. Always contact your lender directly to ask what support is available.

Yes, several organisations offer free, impartial support with managing debt, including car finance:

StepChange Debt Charity (stepchange.org)
National Debtline (nationaldebtline.org)
Citizens Advice (citizensadvice.org.uk)
These charities can help you build a repayment plan or explore options like debt relief.

Ignoring payments can lead to serious consequences including:

Late fees and interest charges
Negative marks on your credit file
Default notices or repossession of the vehicle
Potential court action

The best thing you can do is contact your lender as soon as possible. They may be able to offer support, reduce your payments, or help you exit the agreement fairly.

Yes, this is exactly what refinancing with Marsh is designed to do. If your current car or agreement no longer fits your budget, you can apply to settle your current finance and start again with a more affordable vehicle.

👉 Apply for refinancing now »

You can request a settlement figure from your lender at any time. This tells you the exact amount needed to pay off your car finance agreement early. Knowing this figure helps you decide if options like VT, refinancing, or a trade-in are right for you.

At Marsh Finance, you can check your settlement figure on your online Customer Portal. Access the portal here!

Topics: Car Finance Support & Advice