Car Finance (again) - settlement?

kenh11

Evening all.

Had a quick look through the car finance posts but couldn't find anything specific regarding my query.

Basically I am all set to hand the car back within the next week or so.

Its paid up to half way, I have the VT pack and forms signed, and have agreed a location.

I was just wondering if anyone has ever had any experience of reaching halfway in a car finance (HP) agreement, and offering a settlement figure to keep the car and finish the agreement?

I realise the lenders, in this case Black Horse, are not at this point interested in the market value of the car and will probably think Im taking the P, but the car has depreciated monumentally and by paying halfway Ive already paid over what the car is currently valued at.

So the situation is I would hand the car back to them, they would put it to auction, and I could feasibly buy it from auction at one third of what is left to pay.

And please - such considerations about the level of depreciation etc were not considered at the time I started the agreement, this is not what I am asking here.

Thanks.

NeverEnough

Looking at it dispassionately from Black Horses' perspective, why would they agree to only accepting half of what you owe AND assist you to keep the car for a minimum additional payment? I am pretty sure they would simply tell you to carry on paying the HP if all you want to do is keep the car!! Legally, you are entitled to VT as you are doing, when you reach halfway - the car then goes from Black Horse to their current agents, for sale at auction. Nothing to stop you or a friend bidding on it if you can find the date and time of the auction somehow, but I wouldn't bank on Black Horse telling you the exact details on this - no reason for them to do this. And absolutely no reason at all for them to offer you the car after they have taken the hit on a VT!

kenh11

You are probably exactly right in those points; they'd more than likely politely tell me to do one!

Still, Im curious as to whether there has in the history of HP been a case such as mine where the value of the car has depreciated so much someone has taken these figures to the finance company and got a favourable outcome?

Say for example, if I were to offer them in 'cash' what the current market value is - saves them the whole auction process and so on.

Already know where its being auctioned too, one of their more helpful people explained the VT process a few weeks back and explained where the usual auction sites are.

Id feel extremely cheeky asking them all this but I might actually give it a go

standupguy

kenh11 wrote: »

You are probably exactly right in those points; they'd more than likely politely tell me to do one!

Still, Im curious as to whether there has in the history of HP been a case such as mine where the value of the car has depreciated so much someone has taken these figures to the finance company and got a favourable outcome?

Say for example, if I were to offer them in 'cash' what the current market value is - saves them the whole auction process and so on.

Already know where its being auctioned too, one of their more helpful people explained the VT process a few weeks back and explained where the usual auction sites are.

Id feel extremely cheeky asking them all this but I might actually give it a go

IF you were dealing with a smaller Finance company and could get to speak to someone in authority they may well accept a bid which is better than could be gained at auction plus saves them auction fees.

However, here you will be dealing with staff working a system and not caring about minimising their companies losses and, added to that, having what they perceive as a cheeky punter getting one over on them

Best all round is to go buy it at auction

~Brock~

And it is precisely because of abuses such as this that the finance industry is lobbying to have VT's withdrawn from UK legislation.

lawrie28

The thing is, if youwhere able to do this, you would put it on this site, and maybe others. Then people who were looking to VT would know that they could ring up Black horse, chance there luck and get out of the agreement on the cheap. This would then snowball and cost Black Horse a lot of money. THey don't want this, so it is unlikely that they will allow it.

On the flip side, if you know where it will be auctioned, then you could do things to make the car as unattractive as possible to other bidders - leaving it very dirty, removing the service history, only providing one key etc.etc. However, this is not morally right and may go against the terms that Black Horse have to VT.

kenh11

~Brock~ wrote: »

And it is precisely because of abuses such as this that the finance industry is lobbying to have VT's withdrawn from UK legislation.

This is not an abuse, and no action has yet been taken. This is all hypothetical.

What other abuses are there? Im unfamiliar with them.

lawrie28 wrote: »

The thing is, if youwhere able to do this, you would put it on this site, and maybe others. Then people who were looking to VT would know that they could ring up Black horse, chance there luck and get out of the agreement on the cheap. This would then snowball and cost Black Horse a lot of money. THey don't want this, so it is unlikely that they will allow it.

This is true. I was thinking about this earlier, it would set a huge precedent for future cases.

lawrie28 wrote: »

On the flip side, if you know where it will be auctioned, then you could do things to make the car as unattractive as possible to other bidders - leaving it very dirty, removing the service history, only providing one key etc.etc. However, this is not morally right and may go against the terms that Black Horse have to VT.

The problem with that is it potentially forfeits the terms of the VT, in that the car has to be in satisfactory order. They basically have a check list and run through it when you return the car, if its not up to relative standard then they can charge you.

All in all I think if I wanted to keep the car I could buy it back from the auction site (BCA Nottingham) for a lot less than is left to pay.

I think the idea I had was a bit outlandish but interesting, there must be a case out there of someone doing the same.