Good idea

stratdude

Hi all,

Does this sound like a good idea to go with?
I bought a motorbike about 6 months ago. (just passed my test on a high and was stupid). I have around £4000 out of £5500 outstanding on a 0% offer with honda.

I really want my own place with my partner, I can see my only way of getting a deposit is to get rid of it. I currently have car finance too, I really cant loose the car and it only has 6 months till the agreement is up.
Once both have gone I will be able to save £800/month for a house deposit :j

Looking at the figures if i continue to pay the honda finance until Feb/March when my car finishes i will owe £2950 to honda. My idea is to return it to the dealer and ask them to settle the finance. It will be worth well over this, I will be happy just to return it, if I get some money back, all the better.

Does this sound the way to go? It will enable me to keep my car and save lots of £££ ready for my own home

Any other suggestions.

GeorgeUK

Was this a HP agreement?
If you are happy just to return it, you can do so at any time and will be liable for only 50% of the original cost.
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt#6

exup

if you want to take it back to the dealer to settle it then fine - but if it is worth more to the dealer then dont throw money away - it shouldnt be too much hassle sorting out if you are going to get money back from them.

hypno06

Just remember that if you hand your bike back too early, you will be risking a black mark on your credit file, which you may not want to risk if you are hoping to get a mortgage in a couple of years.

stratdude

so if i hand it back to the dealer to settle so basically he pays off the loan it will give me a black mark?