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Car HP. Getting out after a year?

ashley79
ashley79 Posts: 41 Forumite
Hi

I have read a few threads but not quite what im looking for. However this is nice and simple.

I am a year in to a £286p/m HP payment Plan. not a problem at first but after a year my situation has changed and I wish to get out of the HP. I dont have a lump sum to pay or I would.

A few questions:

Can I sell the car private and get the buyer to write a cheque direct to the HP company or will they have to write it to me and then I do one to the company?

When selling a car if I say it has finance on it no one will buy it. Are there any ways around this?

If I sell it private I can get my money back. Is there any other way of getting rid of it or am I stuck for another 3 years?

Would a garage take it as part exchange with finance on it?

Your help and advice is always appreciated.
«13

Comments

  • marleyboy
    marleyboy Posts: 16,698 Forumite
    10,000 Posts Combo Breaker
    With a hire purchase agreement, you don’t own the car until you make the last repayment, so you do not have the option of selling it and using the money to pay off the balance on your agreement. However, you can return the car and end the agreement at any time under the Half Rule. - http://www.motorcheck.ie/blog/settling-early-on-a-hire-purchase-agreement/
    :A:dance:1+1+1=1:dance::A
    "Marleyboy you are a legend!"
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    marleyboy (total legend)
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  • Apples2
    Apples2 Posts: 6,442 Forumite
    Is this the 11K car you got in November?

    It's unlikely to be worth anything like the settlement figure anyway so even if you did get an agreement to sell, you'd most likely still need a lump sum to make up.
  • You can sell it privately with fiance owing, dealers settle loans daily. Privately, a buyer would pay, by card, the fiance company. Once the fiance company is happy and an email sent to show clear the buyer would take the car. It's not a big deal to buy a car with fiance owing, a lot of people wouldn't though as they see it as difficult or 'dodgy' due to their ignorance.
    You must be honest with the buyer, state it has fiance owing. Hopefully your car is worth more than what is owing.
  • Apples2
    Apples2 Posts: 6,442 Forumite
    jumperjohn wrote: »
    Hopefully your car is worth more than what is owing.
    That's unlikely to happen until right toward the end of the agreement.
  • marleyboy
    marleyboy Posts: 16,698 Forumite
    10,000 Posts Combo Breaker
    jumperjohn wrote: »
    You can sell it privately with fiance owing, dealers settle loans daily. Privately, a buyer would pay, by card, the fiance company.
    :eek::eek::eek:
    Why is hire purchase different?

    • Hire purchase is different to other types of lending basically because you agree to make regular payments to buy something (like a car or a piece of furniture) on a ‘hire’ basis until you have repaid what you borrowed. So, for example, if you took out a hire purchase agreement to buy a car then you don’t actually own that car until you have paid off your agreement in full.
    What does this mean?

    This means that your hire purchase company still owns the product that you purchased even though you are currently using it. So, for example, if you are having money problems and think about selling the item here to raise cash as an asset then you simply can’t do so unless the hire purchase company gives you written permission.

    You are paying for the use of the item in question until your agreement is done and the hire purchase company is still the technical owner until that that point. If you borrow money from a bank to buy a car and then get into repayment difficulties then they will chase you for the money you owe them. Here the hire purchase company will chase for the item you purchased in the first place.
    http://help.cleardebts.co.uk/hire_purchase_debt.html

    OP, its always a good idea to triple check your rights, before taking advice from strangers on an open forum.
    :A:dance:1+1+1=1:dance::A
    "Marleyboy you are a legend!"
    MarleyBoy "You are the Greatest"
    Marleyboy You Are A Legend!
    Marleyboy speaks sense
    marleyboy (total legend)
    Marleyboy - You are, indeed, a legend.
  • Apples2 wrote: »
    That's unlikely to happen until right toward the end of the agreement.

    Not necessarily true. Just had my car valued by a dealer and they are willing to give me enough to breakeven on the settlement figure, and thats without negotiating with them! Webuyanycar are willing to pay more, so I should be able to get them to match that meaning I would have equity in the car.

    For reference I am 22 months into a 60 month deal, so not "right toward the end of the agreement"

    Of course, the longer you are into the agreement the more likely to have equity, but as my case proves, sometimes you can have equity/breakeven, even before halfway. It depends what you put in as a deposit, how well the make and model of car holds its value, the condition of the car, mileage, service history, etc, etc, etc
    Santander Loan [STRIKE]£3003[/STRIKE] £2100
    AA Credit Card [STRIKE]£3148[/STRIKE] £2676
    Natwest OD [STRIKE]£1500[/STRIKE] £1370
    Cahoot OD [STRIKE]£1000 [/STRIKE]£650
    Capital One Card [STRIKE]£641[/STRIKE] £400
    Total [STRIKE](Jan 12)[/STRIKE] [STRIKE]£9546 [/STRIKE] £7196 (Now)
  • ashley79
    ashley79 Posts: 41 Forumite
    Apples2 wrote: »
    Is this the 11K car you got in November?

    It's unlikely to be worth anything like the settlement figure anyway so even if you did get an agreement to sell, you'd most likely still need a lump sum to make up.

    Hi Apples. Yes I bought it in June last year. I have paid of about £3500 on it as my settlement figure was 8k last month (dont quote me on exact figures). I know its worth what i paid for it give or take a grand. Just now is time for me to get it gone before I end up in a pickle. Spot on with your knowledge though. scary...:T
  • ashley79
    ashley79 Posts: 41 Forumite
    jumperjohn wrote: »
    You can sell it privately with fiance owing, dealers settle loans daily. Privately, a buyer would pay, by card, the fiance company. Once the fiance company is happy and an email sent to show clear the buyer would take the car. It's not a big deal to buy a car with fiance owing, a lot of people wouldn't though as they see it as difficult or 'dodgy' due to their ignorance.
    You must be honest with the buyer, state it has fiance owing. Hopefully your car is worth more than what is owing.


    Hi John. I agree. I dont know why people are scared to buy a car with finance owing as long as it is paid off then there is no problem and if they are doing the payment by card to the finance company then they know it is paid. also saves them carrying cash which I think is safer.

    I think my car is worth more than the outstanding amount but we all say that I guess. I am happy to break even as long as I dont get any black marks against my name.

    Thanks for your advice. Not sure if I put in autotrader has finance owing that many people will be interested
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    marleyboy wrote: »
    :eek::eek::eek:

    http://help.cleardebts.co.uk/hire_purchase_debt.html

    OP, its always a good idea to triple check your rights, before taking advice from strangers on an open forum.
    It's very easy to get a settlement figure from the lender and settle it with them. It happens every day many many times.
  • ashley79
    ashley79 Posts: 41 Forumite
    Not necessarily true. Just had my car valued by a dealer and they are willing to give me enough to breakeven on the settlement figure, and thats without negotiating with them! Webuyanycar are willing to pay more, so I should be able to get them to match that meaning I would have equity in the car.

    For reference I am 22 months into a 60 month deal, so not "right toward the end of the agreement"

    Of course, the longer you are into the agreement the more likely to have equity, but as my case proves, sometimes you can have equity/breakeven, even before halfway. It depends what you put in as a deposit, how well the make and model of car holds its value, the condition of the car, mileage, service history, etc, etc, etc

    Sounds good. I think there is equity in my car. I am happy to break even but if I got a bit out of it then even better. I put 2k down deposit, financed 9k = 11k Have paid off £3718 (rough figure)

    So im looking at 6k to pay still. I think my car is worth 9k still. If I can sell it for that then I would be in a better shape than if I broke even.

    Im trying to get my head around not throwing money away and a legitimate way to sell it so all parties are happy.:beer:
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