Can i transfer my hire purchase to another person?

powned

Hello,
I have a HP agreement with black horse for a car, im almost 1 year in (of 5 years) but i am now having problems getting the money to pay (hours cut to part time), i've not missed any instalments yet tho! Besides i really dont NEED the car now, i can live with just my bike.
Anyway, i called them and they said i can make lower payments for 2 months but i will have to make higher payments after and it will mess up my credit rating. Or i can give them £10800 to settle (haha). Neither of these are workable for me. Option 3 is stop paying, get repossessed etc. I dont want that and im sure Blackhorse dont.
I thought i had a solution as a work friend said he would gladly take over the payments in exchange for the car.
I called to ask if i could transfer my hire purchase to another person but the guy on the phone gave me a hesitant no, when i asked why he couldn't give a solid answer.
Just wondering if anyone on here has done this, or knows if it can be done or not?

many thanks in advance

Rafter

Unlikely to be honest. You could have a private arrangement with this friend but you would be taking the risk that if he defaulted your credit record would be damaged and he is taking the risk that ownership of the car is still with you.

A solicitor might be able to draw you up a simple agreement.

If the car is worth £10,800 can't you just sell it to this friend and he can get a loan (from black horse even?)

R.

powned

The car is worth less than that now. i have been digging around and i have found that some companies allow it, but it is reviewed on a case by case basis. Cant find any info on whether or not all companies are obliged to review your request - the FSA website is a bit lame.
The solicitor is a good idea. Dont want to risk any arrangements with my friend, they always end in tears.

standupguy

I think you will find that a HP agreement cannot be transferred into another name.

However, if the friend is creditworthy a Finance company may consider a new agreement with the friend - but most will probably shy away from such an arrangement on HP due to the risks involved.

Your friend could try and get a personal loan to buy the car and settle the Finance?

Your other option would be to voluntary terminate the agreement under the half rule and return the car but you would need to check what outstanding liability you would still have if you were short of the half.
If you paid a large deposit a VT could be a good option but if a low deposit was paid you are probably well short of the half.

footballmanager

hi i'm in a similar situation. I'm 6th months into a 5 year HP agreement however I need to get rid of my car. My sister wants to have the car and takeover payments. I've no worries about her missing payments but i'm concerned about invalidating the agreement. For her to insure the car, i'll have to transfer it into her name however this means the HP on the car will be in my name against a car i dont own. I guess as long as i pay the loan it wont be a problem but i'm worried incase the car is stolen or written off and the loan company find out its not registered in my name. anyone have any experience of anything similar or have any advice?

thanks

jonesMUFCforever

footballmanager wrote: »

hi i'm in a similar situation. I'm 6th months into a 5 year HP agreement however I need to get rid of my car. My sister wants to have the car and takeover payments. I've no worries about her missing payments but i'm concerned about invalidating the agreement. For her to insure the car, i'll have to transfer it into her name however this means the HP on the car will be in my name against a car i dont own. I guess as long as i pay the loan it wont be a problem but i'm worried incase the car is stolen or written off and the loan company find out its not registered in my name. anyone have any experience of anything similar or have any advice?

thanks

You would be mad to even consider this!
If your sister can afford the repayments why can't she get a loan give you the money and then you pay off the HP?

Missyy_2

HP agreements are applicable to the person named on the finance documentation, you cannot transfer HP docs to another persons name, the person who wants the car would need to buy it off you. You could speak to your finance company and explain the situation, but i would warn that vehicle prices have decreased dramtically over the last 6 months and as finance houses take their security in the asset, they may not lend your buyer enough to cover your outstanding finance on the vehicle. Leaving you in a negative equity situation.