Personal Loan - Car

Debs0778

Hi All

Just looking for some advice

I took a personal loan last February with Santander to purchase a car - loan was arranged by the dealer. At the moment I'm looking at ways to decrease my outgoings and the possibility of how a change of car could help towards this.

Obviously to change car I'd be looking at something cheaper to purchase - can anyone tell me how this works and how best to do it, eg can I simply renegotiate the terms of my current loan and pay back any difference to them and reduce by payments

Hope this makes sense!!!!

Tixy

Hi

Was it a personal loan i.e not secured on the car, or was it a hire purchase agreement secured in the car. Have you dug out your paperwork and looked for the section on your right to terminate?

Debs0778

Hi Tixy

Defo not HP - it's a personal loan.

HP Seems to be a rare things these days.........

It's over 60 months and i pay £229

:beer:

paulmcerlean

If it was a personal loan you could likely ask Santander to extend the length of the agreement thus reducing the payments.

If it was hire purchase you can voluntarily terminate the agreement and hand the car back once you have paid half which if only bought last year would be unlikely.

I imagine unless it is a sought after car, there will be an element of negative equity meaning it is too early to sell it at present.

paulmcerlean

Debs0778 wrote: »

Hi Tixy

Defo not HP - it's a personal loan.

HP Seems to be a rare things these days.........

It's over 60 months and i pay £229

:beer:

HP is definitely not rare - my car is HP with Santander signed in Jan. It just depends on the car, length of term etc...

Debs0778

Thanks Paul

I could probably sell the car - not sure you can though with finance owing.

What I hoped to do would be trade it in (I know I've not had it long and will be upside down so to speak) and buy a much cheaper car so that I wouldn't owe as much money. Could the dealership simply pay anything surplus back to Santander or would I have to do a whole new credit agreement?

Tixy

So if its a personal loan you need to establish that if you pay off a lump sum, will that decrease your remaining payments or decrease the length of the loan. If the latter then you need to see if they will change this for you.

Tixy

Debs0778 wrote: »

Thanks Paul

I could probably sell the car - not sure you can though with finance owing.

What I hoped to do would be trade it in (I know I've not had it long and will be upside down so to speak) and buy a much cheaper car so that I wouldn't owe as much money. Could the dealership simply pay anything surplus back to Santander or would I have to do a whole new credit agreement?

If its a personal loan then there is not finance owing on the car. You simply own a car and owe a loan.

Debs0778

Great!

I was always under the impression that you couldn't do that but it makes perfect sense when it's been purchased by personal loan.

I've just been looking at ebay, autotrader etc and they're aren't many out there for sale. The asking prices are around 11k. I know it's unlikely to make money on a car - but breaking even would be a bonus :j

Thanks for your help

selecta_c

paulmcerlean wrote: »

HP is definitely not rare - my car is HP with Santander signed in Jan. It just depends on the car, length of term etc...

I also have HP with Santander,signed for in March.I think HP is still a popular way to purchase a car.

paulmcerlean

selecta_c wrote: »

I also have HP with Santander,signed for in March.I think HP is still a popular way to purchase a car.

It certainly is :j