The young can be very foolish

Bravehearted_2

You can ask for help without trying to lay even a bit of blame at the finance company because there is only one person to blame.

Lenders lend money, thats what they do.

Apples2

mule2000 wrote: »

He simply wants to walk away from the cars by handing them back to the finance company. He has friends who have done this in the past and although they have poor credit rating they now do not have a huge debt round their necks. He has only received 1 credit agreement it was taken out in Sept 2011 and he has paid every month till now. The second credit agreement has not yet arrived (less than 1 month).

Are both agreements HP Agreements?

He cannot simply hand the cars back and walk away.

The new contract may well be "cancellable" as it has not even arrived yet, unfortunately this does not mean he is no longer obligated to buy the car (means he will have to source the funds elsewhere)

Assuming the Gas Guzzling contract is HP, he will have to make 50% of the repayments before handing the car back. If he hasn't abused the car, he should be able to walk away and pay no more.

HamiltonPOLE

Could you hand (Sell) the finance to someone else?

MonkeyMad

Hamilton - that is referred to as 'selling the car and paying off the loan?'. Unless you mean get a mate to take on the finance and use the car which will be great until they discover it is a gas-guzzler and give it back, or wrap it around a tree.

omas

mule2000 wrote: »

He simply wants to walk away from the cars by handing them back to the finance company. He has friends who have done this in the past and although they have poor credit rating they now do not have a huge debt round their necks. He has only received 1 credit agreement it was taken out in Sept 2011 and he has paid every month till now. The second credit agreement has not yet arrived (less than 1 month). The same company have agreed to finance both cars.. The company is called Carlyle finance. As far as I can tell the agreements are bog standard for car dealers.

I've had finance with this company. You can hand the cars back whenever you want, BUT you need to pay at least half of agreement amount AND someone from Manheim (car auctioners) will come to make a list of faults made to the car (dents, scraches, etc). I've had my car for less than 2 year, I've bought it second hand and at this time car was 7 years old (05 plate). I've had to pay for every single scrach made to the car, even for the ones what were there when I've bought it. They expect you to car be in brand new condition or to have a letter from dealer with list of every dent, etc at the momet of buying, if not you have to pay. Think twice about this as I've had to pay for 5 scratches to the bumper over £460 :mad:

mule2000

Omas thank you at last a reply that is useful and informative to me. Being new to forums I guess I should have realised that I didnt give enough useful information out. The car in question has been cared for beyond careful it has been and is still a show car.. meaning it goes to car shows as an example of what can been done with them to show them off. It condition is pristine it is may I say (loved) but even so a silly stupid error in judgement has caused this young man to throw in the towel. As the car is so desirable to the young men who adore this sort of thing he has been approached by somebody who wants to take over his debt.. this only happened yesterday..not sure how the finance company will react to this but I guess its worth exploring with them.
I am just a concerned family member who can see a young man walking a dodgy path and trying with little knowledge to help him. He would not be pleased if he knew I had started this topic on a forum.

You truly have my thanks.

opinions4u

From my experience, you can state the facts clearly to him. You can draw out the consequences of his actions. You can show him the outcomes of others who have followed a similar path and suffered as a result.

But however successful you are in leading the horse to the water, there is absolutely nothing you can do to make it drink.

Until this chap gets his head out of the clouds nothing will change. You can't change him. You can't make these decisions for him.

And the more you explain / lecture / nag, the more likely it is that he will find some strange psychological reason to blame you for the position he finds himself in.

bouncydog1

As the car is pristine and clearly in excellent condition is there any way that he could find a buyer with the cash to buy it outright. This would be preferable to the taking over finance option.

As far as I am aware you cannot take over a finance agreement. There is a new agreement made for the new purchaser and your relative will still be subject to the terms of his own agreement e.g. early settlement penalties etc.

Best thing might be to start advertising the vehicle and see what offers he gets.

Walking away from his financial obligations may seem the best option at the moment, but he will have a trashed credit record which will follow him for at least six years. Although he may not be too worried about this at the moment, it will impair his ability to get phone contracts, mortgage, credit card, etc. etc. There is a new iphone coming out later this year which he may already have thought about if he is a gadet freak, and impaired credit rating will stop him buying this!

He needs to think long and hard and deal with this in an adult manner, fully understanding the implications.