H.p car finance

what_a_smartie22

I just require some sensible advise FOR A FRIEND
right, not going to give you all the story as you don't need to know.
friend needed a car to get to and from 4 jobs [it is mobile work so bus trains not good]
she brought a car for 900.00 that subsequently after 3 months went badly wrong
so she ended up no money but got jobs to go to, needed a car got car finance on h.p [she has only one default on credit file rest of it is blank always paid cash I GESS]
THE PAYMENT each month is for a 55 plate corsa is £187.00 [which is the only one she could have with money] a family member agreed to help pay for the car until she was in a better position.
the family member has now said they no longer wish to pay there part of bill [true should not have done it or gone down this route to start with but no of us are perfect] her job position has now changed due to companies changing she is now down to one very poor paid job part time and another that's self employed as and when required she in a very big mess.because now she cant afford the car. her earning s for the month are in total 250.00 a month [she lives with one family member mother, and no she wont help she has no bills to pay although contributes to food when able to do so] she just wants to know if she can get the payments reduced or can she tell them to take the car back?
if she misses a payment and is 3 days late they charge 12.00 if longer than that they charge 50.00 if it remains not paid for two weeks they charge another 50.00 and have something fitted to the car were by they can stop it moving until she pays and the charges keep mounting up. could do with advise please:j:j:j:cool::cool::cool::cool::cool::cool:

BugsyBrowne

Can't she find out a settlement fee and sell the car privately.

what_a_smartie22

im not sure I can ask but she only had the car in march/ April she has been late paying twice she has said she possibly owes 150.00 in late payments.

what_a_smartie22

her agreement is for 36.months the total credit price is 3,855, she has to pay back 7,144.20 [god She must have been daft]
she has been offered 1,800 for the car not good

BugsyBrowne

what_a_smartie22 wrote: »

her agreement is for 36.months the total credit price is 3,855, she has to pay back 7,144.20 [god She must have been daft]
she has been offered 1,800 for the car not good

She can legally VT the car at 18 months if she decides that.

She needs a settlement figue from the company first also other options can include her going to her bank for a small loan to settle the finance.

what_a_smartie22

thanks again for the help but the bank wont help they say she don't earn enough money suppose that says it all.
I have suggested she rings the company and tells them she cant afford the car and offer what she can pay which is going to be 100.00 less than she is paying now as I think they have something in there agreement regarding termination and default I have a feeling they stop the car moving until you pay what's owed or you come to some sort of settlement, I suppose

CHR15

Love to know what gadget they have to immobilse to car remotely, why haven't we all got those to stop our cars getting nicked? Sceptical.

If she fails to adhere to the contract, they will repo the car, sell it at auction for about £49.50 and chase her with debt collectors for the remaining £7.1k and throw all sorts of charges on top.

No easy way out, stupid idea in the first place but all too common unfortunately, where's Ken who is just about to do something very similar?

chanz4

CHR15 wrote: »

Love to know what gadget they have to immobilse to car remotely, why haven't we all got those to stop our cars getting nicked? Sceptical.

If she fails to adhere to the contract, they will repo the car, sell it at auction for about £49.50 and chase her with debt collectors for the remaining £7.1k and throw all sorts of charges on top.

No easy way out, stupid idea in the first place but all too common unfortunately, where's Ken who is just about to do something very similar?

You can get them for cars, normaly with trackers they remote cut off the fuel supply.

CHR15

On a £187 per month 55 plate Corsa along with the grief of removing it all come the final payment? I remain sceptical, maybe on a high end BMW/Merc

jellie

She can voluntarily terminate her agreement now (much better than getting the car repo'd), but she will still be liable for up to half of the total amount payable. Or she can wait until she's paid half the total amount payable and then return the car with nothing left to pay (assuming no late payment interest/charges/insurances).

I can't imagine the finance company would be willing to accept lower repayments while she's still got the car. Her HP contract will probably require her to keep the car maintained etc and I doubt they'd believe she's got the money for that.

She can't sell the car privately without the permission of the finance company, as it remains their property until she's paid the loan off. An HPI check by the new purchaser would show their interest in the car.

BugsyBrowne

jellie wrote: »

She can voluntarily terminate her agreement now (much better than getting the car repo'd), but she will still be liable for up to half of the total amount payable. Or she can wait until she's paid half the total amount payable and then return the car with nothing left to pay (assuming no late payment interest/charges/insurances).

I can't imagine the finance company would be willing to accept lower repayments while she's still got the car. Her HP contract will probably require her to keep the car maintained etc and I doubt they'd believe she's got the money for that.

She can't sell the car privately without the permission of the finance company, as it remains their property until she's paid the loan off. An HPI check by the new purchaser would show their interest in the car.

Jellie don't bother posting if you not sure what your talking about,of course the OP can sell the car privately Is called settling the finance with the buyer!!