Car Loan

vickyn_2

Hi all. I'm new to moneysaving so forgive me if this is the wrong forum...

I am desparately trying to clear all debts before I start my maternity leave in September!!! My biggest one now is my car loan. I went out and bought a new car last November (impulse purchase) and in hindsight we can now totally manage without it (it is the second car of the household) or make do with a banger!!

Because I have only had the loan for a few months the car is probably in negative equity. The loan is one of these linked to the car, so I know once I have repaid half the debt then I can hand the car back and owe nothing, however, I would really like to offload it way before then.

The finance is with Black Horse, does anyone know of any way or loophole whereby I can end the agreement earlier and hand back the car without owing anything???? I am soooo desparate and annoyed at myself for lumbering myself with this now, it spends most of its time sat on the drive bless it!!!

Oh and I didn't take out any insurance with it either although I doubt I would be elegible for this in anyway...

Help anyone please.....

Rafter

You can try calling them for a settlement figure and also get a trade in value from a garage. However, as you say it is probably going to land you with a debt for the difference between the two numbers which could be £1000's with a nearly new car.

Can't think of any loopholes sorry - you signed the agreement in good faith, weren't missold insurance or anything so seems like you don't have many options.

Good luck.

R.

vickyn_2

Thanks Rafter, as you probably say I'm lumbered for now!! I might try it as a long shot, will have to sell privately though to get most of my money back, it was a good deal at the time so may not have depreciated too much....

vickyn_2

Guess what, I rang Black Horse today and the settlement figure is under the valuation of the car, by amount £1k, I only paid this amount in deposit anyway so if I do manage to get the value of the car then I will have lost nothing!!

So gonna get the baby washed and glossed up this weekend and get it on ebay and autotrader as I've nothing to lose, wish me luck !!!

grumbler

vickyn wrote:

...So gonna get the baby washed and glossed up this weekend and get it on ebay and autotrader as I've nothing to lose, wish me luck !!!

I am not an expert in this, but make sure first that you can sell the car. See, for example, Black Horse Ltd - Can they do this? URGENT HELP REQUIRED ...

vickyn_2

Thanks grumbler, i've checked the T&C's and also spoke to them on the phone and obviously it will appear on a HPI but will be able to prove cleared pretty soon and purchaser would have to trust I would do this, but this is standard with new cars on finance. I have repaid a Black Horse agreement before on a car with no issues, I guess my other way around it would be to repay with a personal loan to clean the HPI and then sell. Hopefully it won't come to that.