Handing Car back to finance company (Black Horse)

scottydotty

Hi, I have been trying to sell my car as the way things are just know it's no longer cost effective for me to run and have turned to public transport to get to work,however i have had with no luck selling it.

I understand that if you have paid half the finance on the car you can terminate your contract and hand it back to the finance company.

I will have paid half at the end of january and I think this is my best option. So I have looked at my contract and small print says "You have no right to cancel this agreement under the Consumer Credit Act 1974" At the time when I bought the car I misread the contract and thought it read "You have a Right to cancel..."

Have I signed my rights away? and can they actually do this?

Any comment's would be appreciated

Thanks Scotty

scotsgirl_3

It depends on the type of contract - it needs to be a hire purchase, not a loan, and to be a regulated agreement (there is a financial limit on this, its either 25k or 30k)

if you look at the top of your agreement ( prob right hand side) it will say whether it is HP or a loan. if it is an HP then the VT rights are also pretty clearly laid out.

scottydotty

Thanks for the reply,

I assumed it would be hire purchase as I got the car from a large car company, however the top of the agreement says " Fixed sum loan agreement regulated by the consumer credit act 1974"

Also the top right hand side it says "You have no right to cancel this agreement under the Consumer Credit Act 1974"

Does this mean I have got no chance of handing it back? And my only option is to sell?

Thanks Scotty

ldavies_3

oo I need to know this also.. I have HP on a car that I cannot sell.. can I ask the finance company to take it back??

scotsgirl_3

Sadly plenty of garages will provide loan agreement - and this one isn't HP so therefore you have no VT rights

The only way BH will take it back is as a voluntary surrender - you hand it back, they sell it, take proceeds from balance, you're liable for the rest. Not a good plan as they will sell it at auction so you will get less for it than privately and will still be left owing money.

You can sell the car privately. You may find that BH have registered an interest in the car on the HPI register ( even though it's not HP!) however if you phone them up they will remove this which will enable you to sell it privately.

scotsgirl_3

ldavies wrote: »

oo I need to know this also.. I have HP on a car that I cannot sell.. can I ask the finance company to take it back??

If it is a regulated hire purchase agreement then you have a right to hand it back once you have paid 50% - the amount will be stated on your agreement.

Some finance companies will give you a song and dance about it - if you manage to establish that you have VT rights then it is best to request it in writing and expressely use the term " Voluntary Termination"

If you need any more help then ask away

scottydotty

Thats a bit of a bummer. How would I check if they have put the car is on the HPI register, would I need to pay for this info?

I guess I will have to fork more Autotrader advertising space! But that would be a waste of cash during December and January

Thanks for the advice

ldavies_3

Thank you ever so much... will it leave a black mark anywhere if I VT?

scotsgirl_3

HPI - I'd call their bluff first of all and request that they remove it - in my experience the vast majority of vehicles they finance on loans are on it. It doesn't cost much to check though - I would suggest you ask them to remove it then once they say its done, double check. I think you can get basic text service checks for around £5 so it needn't be expensive - but you want to be sure because most savvy buyers will check.

In regards to the black mark - technically no, it won't - it doesn't show as adverse credit, missed payments, etc etc. In my experience it doesn't do any harm whatsoever but some people claim it does when it comes to getting new car finance - however, I've dealt with customers who basically buy a car on say a 3 year deal, get to half way, VT, get another, repeat......... - clearly hasn't stopped them getting finance so I'm not convinced it has any impact whatsoever.

ldavies_3

Do I need to give a reason such as affordability? I cant just say I dont want it I guess? ((( being cheeky)))

scotsgirl_3

It's a legal right under hire purchase if it is a regulated agreement so no, no excuses required - if you stil have your original agreement then you could find the bit that refers to VT and say something along the lines of " I would like to voluntary terminate my agreement as permitted under section xx.xx of my agreement and as a right under the Consumer Credit Act" ( you get the general drift)