Car Loans

Gemma1981

We bought a car from Carland 2 years ago with a loan set up through them with Black Horse! We are now in a situation where the loan is for a lot more than the car is worth! We are also looking at moving overseas and we would really like to know if there is anyway to get rid of the car and loan! The interest rate is also very high, would we be better off selling the car and paying off a large amount and then refinance and pay the rest off as a loan?
I would really appreciate any advice on this!

mingbop

gemma my post in here asking for advice for my son's car loan is exactly the same --they are also with black horse...anybody help us please ??

Phoenix79_2

Do you have the option of doing a voluntary surrender? Have you paid over half the total finance amount?

Gemma1981

Hi, unfortunately we have not paid off over half the balance so that is not an option!
Any other ideas?

scotsgirl_3

first thing you need to check is the type of agreement you have - this makes a massive difference.
you will have either a hire purchase agreement or a personal loan. your rights under these are very different.

If you have a hire purchase that is regulated (normally under 25K) thenyou have a right to hand it back once you have paid half. Normally if you hven't paid half then you can still terminate and you will be left oing the diffeence between what you have aid and the half way point. I know that if this is the situation blackhorse will then work out a plan with you to pay off the balance.

if it is a personal loan you can't Terminate, but you can surrender. oth of these mean that you give the car back, but if you surrender then they will sell the car at auction andtake the sales proceeds from your balance - and then work out a plan for the rest.

If you hav a loan, then you are probablybetter to sell the car privately. Blackhorse will probably have put the car on the HPI register anyway, but if you phone them then they will remove it - you should ask for a ettlemnt figure as you should get a rebate on the interest, depending o how far into the agreement you are as it is normally added at the start.

if it's a hire purchase, they are unlikely to remove the interest.

hope this helps!