Urgent HP Question

lucy_w86

I have a car on Finance since September 2008 however my partner and I have decided instead of having two vehicles, we are going to both use one. But the car we have at present is too small.

We are going to sell his and use the money as a deposit towards a new car. I am going to cancel the HP on my car and we both go in for a new car. Can I transfer my Finance? How do I make a new application? Is is better I stay with the manufacturer I am already with? How does this work?

Lots of questions! Thanks

ILW

Cannot see tou can just cancel the HP after less than a year. You may be able to do a trade in where the agreement is settled using a new loan.

CLAPTON

a HP agreement can be voluntarilly terminated after half the value of the finance has been paid (that's usually means half the payments).. so you give the car back and owe nothing.

otherwise you may be able to come to an arrangement with the finance company.

why can't you just keep one of the existing cars and save up for whatever you want in the future?

Rafter

Clapton and ILW are right - cancelling after such a short period will be stupidly expensive for you.

Do you really need a big car all the time? Could you not keep one small one and then hire a big one or a van if you need to move large stuff or want a large vehicle for holidays etc? Could work out a lot cheaper. You can then save the proceeds from your partners car, wait till 1/2 your hp agreement is up and then get the larger car you need?

Good luck

R.

wevet

I was in a similar position to you. I had a car on HP and with the state of the market I could not sell it without having a residual debt of several grand and no car.

My solution is quite neat whilst I am redundant and still looking for a job I have put my car with a company called Re-Leased.com and they are renting the car out. I am getting all my payment covered plus a small profit ££95 a month).

When I can service the loan again I get the car back - I can highly recommend it as a quick fix until eiether you geta job or the hp is paid off.

ILW

is this spam?

wevet

Nope. This totally gen.

I was in the same position as a whole lot of people whose second biggest debt is usually the car - mine was exacerbated by the fact that my employer provided "car loan assistance so i bought somethign rather more expensive than what I would otehrwise.

After my mortgage my main debt was my car. If I had simply handed backto the HP co I would have beeen lumbered with a an £8k debt - they would not even let me sell it to someone which would have left me with a reduced debt of £6750.

Now all I have to do is service the mortgage and bike everywhere.

(I will have to pay the servicing charges on the car though and the tyres but that is trifling in comparison to whta I was facing).