Motorcycle finance question

caledonianblues

Hi there,

Apologies in advance if this turns out to be long-winded.

Last year I purchased a second-hand motorcycle on finance (08 registration). I am exactly one year into the 3 year agreement. The finance is provided by Black Horse and I believe this is an HP agreement.

Now that the motorcycle if approaching 3 years old I thought about trading it in and buying a new one. So a few days ago I went back to the same shop to look for a replacement and found a brand new one. The new motorcycle is worth £2300 more than the price the shop will give me for my motorcycle (£6500) and the finance settlement figure is £5100. The obvious solution was to settle the existing balance and take out credit for the new motorcycle but unfortunately I was declined.

The salesman told me that if I can raise £2300 in cash (which I can) then I can simply pay that and they will transfer the existing credit agreement over to the new motorcycle (so that the HPI check shows clear on my old motorcycle).

Before I go and raise the cash (sell some shares) can someone please confirm that Black Horse will in fact allow the shop to transfer the security of the HP agreement from my existing motorcycle to the new one? I cannot see any reason why not as the new motorcycle is worth more than the one the agreement is currently secured on.

Thanks in advance.


Regards,
David

Fiddlestick

caledonianblues wrote: »

Before I go and raise the cash (sell some shares) can someone please confirm that Black Horse will in fact allow the shop to transfer the security of the HP agreement from my existing motorcycle to the new one?

Why don't you call them and ask them?

kev.s

my bike finance was with black horse, never had a problem with them but i doubt if they will just change it if you've been declined already, they will have to draw up a new agreement for instance and this i would imagine is where the credit check would come in. another thing is i would check with them direct and advise them what the dealer has said, as if the dealer is pulling a fast one then they could withdraw their finance service from them, and secondly if he is pulling a fast one.. walk away as who know's what pile of !!!!!! you could be buying

standupguy

As someone has said you do need to check directly with the Finance company.

Some Finance companies would view a change as impossible without settling one and taking out another agreement - this may be for policy or computer system reasons.

Others may ask you to sign what is termed as a "modifying agreement" - which in effect replaces the subject of security on the original agreement so will enable you to swap bikes if you pay the difference whilst continuing with the existing agreement/payments.


You need to find out the position of your Finance company and the best way is to ask them rather than rely on the bike dealer

caledonianblues

Thanks for all the suggestions guys. In the end the dealer liaised with Black Horse and asked them to convert the existing HP agreement into a personal unsecured loan, which effectively removes the HPI tag from my old bike (allowing me to trade it in). Black Horse now have no interest in the new bike and the repayment schedule remains unchanged (same monthly instalments, same duration).