Car Finance - Half Way Rule - Questions?

NickR85

Hi,

I currently have a 5 year hire purchase agreement with Black Horse on my car. I am approximately 10months away from the half way point where I can hand the car back.

Basically I want to know if anyone has any experience with these matters and Black Horse? Can I offer to pay the remaining payments to bring me up to the half way point to allow me to hand the car back now? If so is that the end of the matter?

Thanks in Advance

Nick

motorguy

NickR85 wrote: »

Hi,

I currently have a 5 year hire purchase agreement with Black Horse on my car. I am approximately 10months away from the half way point where I can hand the car back.

Basically I want to know if anyone has any experience with these matters and Black Horse? Can I offer to pay the remaining payments to bring me up to the half way point to allow me to hand the car back now? If so is that the end of the matter?

Thanks in Advance

Nick

Just for clarification, i take it you are 10 months from having paid the total transaction amount, as opposed to 10 months from being 2.5 years through the agreement?

LandyAndy

pgilc1 wrote: »

Just for clarification, i take it you are 10 months from having paid the total transaction amount, as opposed to 10 months from being 2.5 years through the agreement?

Can you read?

NickR85

Sorry should off been clearer, my 2.5 year point will be in another 10 months approx.

I have contacted Black Horse and they are sending me out a Voluntary Termination pack.

I am just wandering if Black Horse may accept payment of the amount to take me up to 50%.

LandyAndy

NickR85 wrote: »

Hi,

I currently have a 5 year hire purchase agreement with Black Horse on my car. I am approximately 10months away from the half way point where I can hand the car back.

Basically I want to know if anyone has any experience with these matters and Black Horse? Can I offer to pay the remaining payments to bring me up to the half way point to allow me to hand the car back now? If so is that the end of the matter?

Thanks in Advance

Nick

If you have paid more than 50% of the finance you can hand the car back. Ask Black Horse how much more you would need to pay to be able to make a voluntary termination.

Do you have a final balloon payment on the finance? This is part of the financed amount and so can push the half way point a long way forward.

LandyAndy

NickR85 wrote: »

Sorry should off been clearer, my 2.5 year point will be in another 10 months approx.

I have contacted Black Horse and they are sending me out a Voluntary Termination pack.

I am just wandering if Black Horse may accept payment of the amount to take me up to 50%.

You were entirely clear:).

I have done a VT. It is straightforward as long as the vehicle is in a decent condition for a car of that age. So, the odd paintwork blemish or small panel ding is fine. Major knocks or ripped upholstery etc isn't.

Service history will have to be up to date and tyres will need to be legal.

BoGoF

Yes, once you've paid 50% of the amount financed, whether that be as a lump sum then you can hand it back. Remember just because you would be 2.5 years into a 5 year agreement it does not necessarily follow that you will have paid half the finance - do the maths.

TBH though I don't see the point in paying it now and handing it back, why pay for something you won't have the use of?

NickR85

No ballon payment as such, the final payment is my normal payment plus another £100 on top approx.

NickR85

BoGoF wrote: »

Yes, once you've paid 50% of the amount financed, whether that be as a lump sum then you can hand it back. Remember just because you would be 2.5 years into a 5 year agreement it does not necessarily follow that you will have paid half the finance - do the maths.

TBH though I don't see the point in paying it now and handing it back, why pay for something you won't have the use of?

Basically I no longer need the car, I made some mis-judgements in the past when buying cars etc and this has left me owing more than the car is worth. Basically I would rather pay what i need to to hand the car back and have a clean slate.....if that makes sense?

BOBS

Just check that doing this wont totally destroy your credit rating. My DH has mentioned this but we were scared of not being able to get finance again.

BoGoF

NickR85 wrote: »

Basically I no longer need the car, I made some mis-judgements in the past when buying cars etc and this has left me owing more than the car is worth. Basically I would rather pay what i need to to hand the car back and have a clean slate.....if that makes sense?

Obviously your call, but paying a lump sum now doesn't really change anything other than not having use of a car that you could've used for the next 10 months. I appreciate there would be other costs if you kept the car but if I'm paying for something I'm using it