Ending a car loan early

whereschris

My mate has a car loan with Black horse over 5 years but is struggling to pay it. He wants to sell it but is not sure if this is allowed. He has had the loan for about 18 months. There is roughly 4,000 left to pay.

Any ideas or suggestions?

hayleythedaisy

contact black horse. they may offer a settlement figure. then contact a garage and explain the situation.
Is it secured on the car?

whereschris

Thanks for your quick response
Yes it is secured on the car. He is so desperate that he just wants rid of it...

PNPSUKNET

if it is hp he will need to of had it 2.5 years

whereschris

Right. He thinks that he has heard that up to 18 months of the finance you can give the car back. Any ideas on that? Sounds a little too easy.

paulmcerlean

No that is incorrect.

On a car HP agreement, once HALF of it has been paid, or in this case 2.5 years of payments - then he can surrender the car to the HP comapny. Not beforehand however.

~Brock~

paulmcerlean wrote: »

No that is incorrect.

On a car HP agreement, once HALF of it has been paid, or in this case 2.5 years of payments - then he can surrender the car to the HP comapny. Not beforehand however.

It's not necessarily 2.5 years - it depends on the amount of deposit paid at the outset (if any) because this also counts towards the termination figure.

He can also VT and hand the car back before the half way figure, but remains liable for any shortfall between the amount paid to date and tha actual VT figure.

melamoo

it depends on how much the car is worth, is it worth more or less than the settlement, i took mine to a dealership, they baught it and i used the money to settle the finance, obviously i had to explain that there was still oustanding finance, rather than give me the cheque they sent it straight to the finance company, i handed the car over as soon as the cheque cleared.