Car Loan but not HP

Cerbera_2

Can anyone offer me any advice?
I got a car in Nov 2003 from a dealer. I took finance through the dealer from Black Horse over 5 years. I'm pretty sure it's not HP as it says nothing about it on contract.
Anyway, I'm getting a new company car after Christmas :j but what to do with my current transport?
I owe approx £5k but it is only worth about £3k

Any suggestions???

matrix999

If its not on HP its most likely to be something called a Motor Loan...Very similar to a personal loan. Unfortunately by the sounds of your story your in a postion called Negative Equity where the car is worth less than the settlement figure of the loan..The only thing you can do in this situation is pay the difference using your own money or keep the car until the finance has been paid off then sell the car but it will be worth a lot less of course.

Sorry for the bad news

Claudie

Could you ask your company to allow you to receive a car allowance in lieu of a car? That would allow you to keep your current car and pay your current payments from your increased salary.

If the dealer won't allow you a settlement; would it be possible to sell the car then rather than pay off the loan immediately, put the money from the sale in a new bank acct and carry on with the monthly payments from that account. Probably not the best option, and you would need to be very strict, but it stops you needing to find a huge settlement figure at this time of year.

Good luck.

Weesimba

Is that the figure you have worked out you owe?

If you phone and ask for an exact settlement figure from from the company it may be less than what you have calculated you owe lessening the hit of negative equity!

iwanttosave_2

If the loan is secured against the car you canot sell it, it is classed as theft. Other than that i would go with asking for a car allowance from work.

idiot_3

you may well also struggle to sell a car with finance outstanding. even a simple hpi check would confirm that there is finance on the car. many buyers would run a mile from this. have you looked at it from a tax position, whereby you may well be better off keeping your current car and taking money from work, rather than a car?

Addicted2Chocolate

I very much doubt it will be a secured loan. But check the agreement it is is a personal credit agreement or unsecured laon then you can sell the car and repay a lumo sum, them pay of the balance in installements? i would negotiate with Black Horse... write to them with an offer see if they agree...

Cerbera_2

Thank you all for your replies :T :T :T :T

I'll get to work this week and try to sort :rolleyes:
I know I'll get screwed if I take it to a dealer but no matter what happens I'll be in a better situation 'cos payments will be well down, insurance, maintenance, etc. :j :j

Thanks again :A