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Car HP

Hi,

We bought a car on HP 2.5 yrs ago, it is a 2004 Vauxhall Vectra. It was a 3yr agreement with three options after the 3yrs, a) to pay the balance +/-£2500, b) to hand back the keys after the 3yrs, or c) refinance it.
We have just received a letter to say that the options have now changed and on the 1st March we have to either, a) pay the balance +/-£2500, b) to hand back the keys, or c) sell the car as a down payment for something else.

We have always had the intention to refinance the car as we don't want to sell it and also don't want to tie ourselves into another 3-4yr agreement. We were just going to keep the monthly payments the same for another year until it was paid off.

Unfortunately we won't have the money to pay it all on the 1st March, we don't want to just give the keys back come 1st March as we would have paid £7,200 towards the car at that time and obviously need it to get kids to and from school and work transport etc. And obviously don't want to buy another car, as we probably won't get credit anyway cause we have signed into a 'Debt Management Plan'.

Can anybody help or offer us some advice. Can the loan company just change their minds or do they have to abide by the terms and conditions that were in place when we bought the car? :confused: Our cicumstances have changed since we bought the car but we are still abiding by their terms and conditions.

Please also don't advise that I call them and explain our situation as we did that with our creditors prior to going into debt management and they didn't seem to give a hoot as to our situation and still badgered us everyday.

Any good and proper advise would be greatly appreicated.

Thanks in advance.

Comments

  • Xbigman
    Xbigman Posts: 3,903 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    By refinance they meant another loan through them. They are no longer offering this for whatever reason. Its not a change in terms and conditions, just the removal of an option through them. You can however always refinance (IE take out a loan) through someone else.

    As you are on a DMP my advice would be to sell the car, pay off the remaining balance and use whatever is left to buy a cheap runabout.
    You then have extra money to throw at your DMP as there will be no loan payments to make.
    Regards



    X
    Xbigman's guide to a happy life.

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  • Tubbss
    Tubbss Posts: 444 Forumite
    Part of the Furniture 100 Posts PPI Party Pooper
    Hi,
    The above is not good advice. If the car is on an hire purchase agreement the car is not theirs to sell. They would need prior permission from the finance company and the car will be HPI registered.

    Please please contact the finance company before even thinking about selling the car as this could land you in a heap of trouble if you did this without written permission.
  • Thanks Tubbss, I have no intentions of selling the car and wasn't ever an option.
    The car is very reliable as we have paid for all its services at the dealers garage and know the car. I don't want to buy somebody elses problem. From past experience cheap round arounds aren't reliable and cost more money in the long run by spending more time in the workshop as opposed to on the road. I guess our only option is to 'beg, borrow and steal' to find the £2,500 odd for 1st March.
    Regards
    p.s. don't actual mean the 'steal' part :-)
  • Xbigman
    Xbigman Posts: 3,903 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Tubbss wrote: »
    Hi,
    The above is not good advice. If the car is on an hire purchase agreement the car is not theirs to sell. They would need prior permission from the finance company and the car will be HPI registered.

    Please please contact the finance company before even thinking about selling the car as this could land you in a heap of trouble if you did this without written permission.

    You are correct the car can't be sold now (sorry for not being clear) but a sale could be arranged at the time of the final payment being required, although it would need to be through a dealer who will pay off the finance. And the price won't be the best.

    However. If someone is on a DMP driving a newish car then ditching the car in favour of an older model is definately the way to go. Continueing to pay out on a car that is above the minimum spec required shows a lack of commitment to a DMP. I recommend the debt free wannabe board.
    I know I sound harsh but reading about people in debt and struggling to pay talk about keeping a car they don't own and can't afford needs a comment.
    Regards



    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • I never said I can't afford the car. We are affording the car... and haven't faulted on any of their payments.
    Should I rather buy a crappy car for £2,000 which is going to give me loads of problems and cost me more in the long run????? Do you think that would be more beneficial for me to then phone my creditor with my car problems??? Do think they would understand???
  • SingleSue
    SingleSue Posts: 11,717 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    My car cost £461 from Ebay...2 and a bit years on and many thousands of miles and it is still going strong.

    Yes, it has cost me a little for problems but a lot less than buying a car for even 2K (which to me is an expensive car!) 2 years ago.

    I also need a very reliable car to ferry disabled children everywhere.
    We made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
    Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.
  • Even if the company said they would refinance, as your on a DMP i doubt you will be accepted. I would write to your lender offering an amount - offer at least you monthly instalment, or the final payment over 12/18 months. Enclose your soa, they may agree to it as a one off. Even if they do not accept the payment - pay your offer. They would need a court order to take your vehicle back, and if you show willingness to pay - and you are paying it i think its unlikely they will get the car. you must be paying around 250pm anyway so should get it cleared pretty quickly.

    My opinion.
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