Selling a car that is on HP?

chelle

Not sure if this is the correct board though.

We have a car, that we may be looking to sell within the next month, as we will find out if DH is going to have a company car.

But (there always is a but!!), it is on finance, and the finance o/s is approx £6K and the car only worth about £4.5K.

I know we cannot sell it without the finance being settled, we were going to use the proceeds of the sale to settle the finance, but obviously that is not going to happen.

Wondered if anyone had managed to get the HP changed to a personal loan (it is with Black Horse, so they do offer personal loans), to enable us to sell the car, and then pay the money we got from the sale, back into the loan, so it is paid off quicker.

Any advice as to the way to go with this would be great :-)

Thank you

balmk

Depending on your agreement and the length of time that you have been paying, you may be able to end the agreement early by handing the car back.

Hopefully someone with a bit more knowledge around this will come along soon!

Tubbss

Hi,

Firstly, check your agreement. Black Horse do HP and credit sales.
If it is HP and you have paid more than half of the amount due then you should be able to VT - hand the car back to them with nothing left to pay (except possible make good costs if the car is ina state!)

Either way, speak to them and see what they can do to assist.

chelle

We have only had the car 14 months and was a 60 month agreement. The agreement does not state anything about vt and handing the car back though.

Apples2

chelle wrote: »

We have only had the car 14 months and was a 60 month agreement. The agreement does not state anything about vt and handing the car back though.

But does it say it is HP or not??

Not that it matters too much, you are a Country Mile away from the half way point in any case.

You could apply for a Personal loan on its own, pay the finance off, sell the car.

chelle

The agreement actually states it is a "fixed sum loan agreement", does this mean it is not HP?

CLAPTON

if its HP then it will say HIRE PURCHASE

so it looks like an ordinary credit agreement
however you may find that they have (incorrectly) listed it on HPI so best to check first before trying to sell

CHR15

It looks like a simple personal loan, therefore not secured on the car. You will need to check.

If that is so, there is nothing stopping you from selling it now and simply continue to make repayments on your loan.

chelle

Thank you everyone for the advice. I have rang them, and although a personal loan, the car was registered on the HPI register, so they have removed that, so we are free to sell the car. That is a huge relief, as I was not quite sure how we were going to get around that fact when someone did a HPI check and the car was not worth what was outstanding on finance.