Black Horse Finance - Advice Needed

neild7744

Hi,

In July 2009 i used Black Horse Finance to fund a car purchase over a 60 month period. I just want to query some issues. I think ive made a big big mistake here getting this finance.

There is an advance payment of £4250, what is this?

My agreement states that the 'total cash price' - advance payment' is my amount of credit...which i understand and am happy with...however on 'Total amount payable' this advance payment is then added to my 'amount of credit' + 'charge for credit'. Is this correct?

Basically it says at the top of my agreement my amount of credit is around £13500, but total amount payable is around £25000 (because of this advance payment + interest and setup fee's ).

Its stupid...i went into this agreement wanting to part finance my car and seem to be paying back double its current value.

Any help? I dont understand what advance payment is?

Also how can i get out of this agreement. BMW have really taken me for a ride!!!

opinions4u

What's the APR and what's the monthly payment?

How much did you buy the car for and how much deposit did you put down?

thebaroness

The Advance Payment is your deposit (cash or part ex value). The total amount payable figure is the total you will have paid for the car not for the finance. The total amount paid on finance will be the amount of credit+charge for credit.

If you want to end the agreement, you can obtain a settlement figure and pay the remaining finance. You could also discuss the option of Voluntary termination but there are conditions to this and you have to be at a certain point of your agreement (usually over half way through) and it can effect your ability to obtain credit (in particular HP agreements) in the future.

gwhite

I have Black Horse Finance on a van which I got just over 2 years ago, and since then have found BH to be less than helpful.
The upfront amount is usually vehicle deposit which is normally the same amount as the VAT. Black horse say that if you incurr any charges they will be put onto the end of the agreement and are negotiable. There is a big flaw in this and that is, if you want to make a double payment to save having to find the money the following month, and you have charges on your account, their system will use the second months payment to pay off any charges before going towards future payments. On this basis, accrued charges are no longer negotiable and also means that the following monthy payment will be short and you will then have to pay a charge for that. Another problem with their system is that although you can pay up to 10 days late without getting charged they dont tell you that it will appear on your credit file that you have had late payments, which can affect interest rates on further borrowing.

NeverEnough

I've had a vehicle on Black Horse finance and there were no problems at all - problems generally arise with these companies, I've noticed, when people go into arrears or miss payments for whatever reason. Its also a bit odd to only notice approx 2 years after entering into the agreement, issues which you want clarified about amounts payable etc - really you should be doing this before taking delivery of the car and leaving the dealership, so that you understand exactly how much the credit is costing you. I guess years down the line when the car has lost its "new" attraction and the payment is a burden on one's stretched income, is the time when some get the paperwork out and read it more thoroughly.........car credit from the likes of Black Horse is not cheap, its important to understand the charges before setting off on a 60 month journey with a finance company........