H.p car finance

jellie

Thank you for the advice.

The new purchaser wouldn't own the car - the finance company still would and they would probably like the balance of the loan paid before they released their interest. If the sale of the car won't cover the remaining debt, why would they give up their right to repossess the car and at least get some of their money back?

The car is only 'hired' until the last payment (plus any additional option to purchase payment) is made.

forgotmyname

Bit of a mess, But sadly i dont see an easy way out.

Hand the car back now they will auction it and send the bill for the balance.

The voluntary handback and its all closed with no more to pay will be after they have paid half the value which is not always at the midway point.
Depends on deposits etc.

It will affect their credit file badly with a few more missed payments.

What other outgoings do they have?

Maybe fill in a statement of affairs on the debt board and see what people suggest.

BugsyBrowne

jellie wrote: »

Thank you for the advice.

The new purchaser wouldn't own the car - the finance company still would and they would probably like the balance of the loan paid before they released their interest. If the sale of the car won't cover the remaining debt, why would they give up their right to repossess the car and at least get some of their money back?

The car is only 'hired' until the last payment (plus any additional option to purchase payment) is made.

LISTEN when you sell a car on finance the HP company will give you a settlement figure normally on their website which says settle early which then the buyer would then use his bank details to pay the finance off which at this point the original buyer has now settled his finance therefor the car IS NOT NOW OWNED BY THE FINANCE COMPANY!!!!!!!

My brother in law does this Everytime someone wants to trade or sell their car which is on HP.

jellie

BugsyBrowne wrote: »

LISTEN when you sell a car on finance the HP company will give you a settlement figure normally on their website which says settle early which then the buyer would then use his bank details to pay the finance off which at this point the original buyer has now settled his finance therefor the car IS NOT NOW OWNED BY THE FINANCE COMPANY!!!!!!!

My brother in law does this Everytime someone wants to trade or sell their car which is on HP.

You have assumed that the buyer will pay sufficient for the car to enable the finance to be paid off, I have assumed (given what the OP said) that they won't. My assumption would leave a balance outstanding, your's would not.

If the finance company have been paid what they require to settle the debt, then of course there would be no problem. But I felt OP should be aware of the situation should a debt remain.

what_a_smartie22

thank you for your replies there is no easy way out as most people know when you buy a car or anything its never worth what you paid for it. I think she is going to speak to the company if she did a debit management plan there is a clause in the contract about making voluntary arrangement or becoming bankrupt .the contract states they can take the goods back for late payments. [i gess they would wait while before that happens]
it also says about the consumer credit act and what they have to do to have the car back

Dirk_Gently_2

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.

Probably a bailiff with a big yellow wheelclamp.

what_a_smartie22

thanks bugsey I think you have a fair point she got the valuation from one of those we buy any car things, hoping she could get enough to buy her way out of it but sadly not, however Just a made idea, could she walk into a car dealer with lets say 1,500 [which she not got] the dealer would get a settlement figure off the finance company [probable a better one than she could get]
I suppose in theory she could then buy a car cheaper from the dealer for the cash in the long run sounds as though it would be better. cause if she had the cash. would that work?

SeanG79

The car dealer is unlikely to get a different settlement figure from the 1 she has been given. The current lender is under no obligation to offer any lower settlement.

She would be able to buy a cheaper car for cash, but that wouldnt solve the issue she has with the existing finance agreement.

Sometimes with these sub-prime lenders, if you approach them, they will extend the term...this will reduce the monthly payments but obviously result in a lot more interest being paid at such a high rate