How do I get rid of my Car Finance

jamesballantyne1991

Back in October 2010 I took out a HP Car Finance Loan with the Car Shop. They sold me a Car for £10,000 that was only worth £7,000, stupidly without doing research into the value of the car and going along with their lowest price guarantee promise I went for it.

Further down the line, I'm now wanting to get rid of my car as It's taking up all my monthly earnings.

The settlement figure is now around £9,500. What is the best way to get rid of the car?

I was thinking of putting the car up for sale at the settlement figure and when the buyer comes to pick up the car I would phone up Blackhorse and pay over the phone to prove the car is now free of finance, is this an option?

Or could I phone up Blackhorse and explain my situation or is there anyway a company would take the car off me and settle it?

Any help or advice would be fantastic.

Thanks

James (aged 19)

jd87

There are probably other people here who know more about this sort of thing, but my advice would be that you should try and get the finance paid off first, perhaps by getting a 0% or low rate credit card, or a low rate loan. Use something like this to pay off the finance, then you will be free to sell the car as you wish.

If you have a good enough credit rating to get a 0% card it could work out quite well for you. You would be able to just pay minimum payments on this until the 0% offer runs out, and the money from the sale of the car could sit in a savings account earning you some interest until you need to take it out to pay the card off.

jamesballantyne1991

Thanks for your reply, I've tried looking for loans or other credit cards but there is nothing for me because I'm so young, there was one loan company called ZOPA but you have to be 20... few more months for that to happen.

TonyMMM

If you know the car was only worth £7,000 in October why do think you will be able to sell it for the settlement figure (£9,500) now ?

jd87

TonyMMM wrote: »

If you know the car was only worth £7,000 in October why do think you will be able to sell it for the settlement figure (£9,500) now ?

I'm sure he's probably aware of that. Thanks for your helpful post...

OP, if you can't get cheaper credit to pay it off, and there isn't anyone (a parent?) willing to take the credit out for you, then I suppose all you can do is keep paying, or speak to Blackhorse and ask how it would work if you gave them the car back.

sharpy2010

Yet another example of a young person getting vastly too much credit for an item that wasn't really needed, and is now regretting the consequences.

iolanthe07

I fear that if the retail value was £7000 last October, then the trade/private sale value now might be only around £5000. Could you ask Black Horse to reschedule your loan over a longer period so that the monthly repayments are reduced to something you can afford? Are you sure that the settlement figure is around £9,500? I had a Black Horse vehicle loan some years ago, and there was an early repayment penalty of 30 days (it might have been 60 days) interest, so that would be worth checking out. Have a look at your T & C's (in the agreement you signed).

ILW

jd87 wrote: »

I'm sure he's probably aware of that. Thanks for your helpful post...

OP, if you can't get cheaper credit to pay it off, and there isn't anyone (a parent?) willing to take the credit out for you, then I suppose all you can do is keep paying, or speak to Blackhorse and ask how it would work if you gave them the car back.

But he said in his post that he was going to put it up for sale at the settlement figure, so the post may be helpful in trying to figure out what he is talking about.

CHR15

You have zero chance of obtaining a 0% credit card with a £10k limit (as you have already found out).

Selling the car (even if it were possible) would leave you in massive negative equity. Remember the car isn't yours to sell, it belongs to the finance company so selling is something you would have to agree with blackhorse first, not ring them when a buyer is stood at the door.

You currently have a £10k debt so you will find things almost impossible to get another loan on top unless you are a high earner. I think we can discount being a high earner due to the finance in the first place.

Once you have paid 50% you can hand the car back but you are still some way off that.

Of course you can ask someone to take the repayments off your hands (the finance) but if they were to come on here and ask if it is a good idea the replies will run into many pages, all the same response.

Cash_Flow

CHR15 wrote: »

You have zero chance of obtaining a 0% credit card with a £10k limit (as you have already found out).

Selling the car (even if it were possible) would leave you in massive negative equity. Remember the car isn't yours to sell, it belongs to the finance company so selling is something you would have to agree with blackhorse first, not ring them when a buyer is stood at the door.

You currently have a £10k debt so you will find things almost impossible to get another loan on top unless you are a high earner. I think we can discount being a high earner due to the finance in the first place.

Once you have paid 50% you can hand the car back but you are still some way off that.

Of course you can ask someone to take the repayments off your hands (the finance) but if they were to come on here and ask if it is a good idea the replies will run into many pages, all the same response.

I put money on the OP that he will not be able to hand the car back.

The OP is under the impression that his car loan is hire purchase, my money is that it is in-fact a personal loan with Blackhorse having an interest on the the vehicle which is registered with HPI.

Blackhorse have been doing this for some time.

jamesballantyne1991

It's a HP loan and just really need to get something sorted whether it's to reduce the payments or get rid of it, I just need some helpful advice