Question about Car finance and DMP

sallyx

Just wondering if any experts out there can help me
In my quest to get finances sorted once and for all, I am thinking I am going to have to sell my car. What I want to know is this, I have taken it out on 5 year HP and currently nearly 2 years paid. What happens if I say I can't pay it? Will they let me surrender the car? Are there any penalties for doing this? If the value of the car doesn't reach that of the outstanding credit agreement can they pursue me for the remainder? The credit is with capital bank agreed through audi.
If decided to go the DMP route woud I get to keep the car and just have to pay for it over a longer period or would they ask for it back anyway?
Gosh sorry for waffling on, hope someone can help me
Thanks Guys

CLAPTON

rules about HP are available here

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013226

sallyx

thanks for this
I have another question if I persue a DMP firstly how do they effect your credit rating and ability to get credit?? i.e. will it be on my file until i finish the DMp and then 6 years after the last payment? Does it count as a default? I have no idea about these.
Secondly if I did have a DMP I have two outstanding debts, Car (HP) and an egg loan. Obviously the egg loan would be fine but are the car finance company likely to say we want the car back rather than you pay us x amount over x number of years??
Hope someone can help as I need to work out the best option for me
thanks

ukbill69

Look at your car finance agreement, if it states quarters and hearts or something like (cant think of the name) that then you can give your car back without paying any more money to the finance firm.

lou_lou_skinty_poos

in a dmp like your mortgage or electricity bills finance is considered a priority debt and therefore you will pay the finance company the same as you do now. after paying your essential bills every month the money whats left is your disposible income this will be split between your other unsecured creditors such as loans over drafts and credit cards.

If you want to give the car back you will have to have paid off a certain percentage of the finance (this will be noted in the policy wording) if youve paid off 3 of the 5 years finance i cant imagine you should be far off the figure needed to give the car back.

good luck

bonnie_2

When we started our dmp, the car wasn't included in it as they don't take on hp agreements. You will still be able to pay for it seperatly. You can only hand the car back if you have paid more than half.
You cannot i believe sell the car bacause it isn't yours until it is paid for, it belongs to the company till you have made the last payment.