Returning HP Car

southernbelle

I have made the decision (I think) to return my HP car, if I can.

This will make me very unhappy, but will be £310 better off each month. I will come into some money next year and will be debt-free in October, and able to buy a little car for cash.

Does anyone have any advice for how to do this? My car needs some work before I think they will take it back - or they will charge silly money for the repairs. It also has an insurance claim outstanding as some ****head crashed into it yesterday. :mad:

My car was bought with FGA Capital through Alfa Romeo.

And yes, I realise how silly it was, so no lectures required. :cool:;)

thehappybutterfly

Can you sell your car? I'm in a similar situation - I bought my car 3 years ago on a PCP deal with Ford Options.

The Options at the end of the three years are:

1) upgrade
2) make the balloon payment and keep the car
3) hand it back

or the 4th option which I only found about 2 weeks ago:

4) sell the car

That's what we're going to. Sell the car, clear the finance and buy a banger with what's left. It's all legit and quite common apparently.

Speak to your dealer - they will be able to advise.

oldhand

southernbelle wrote: »

I have made the decision (I think) to return my HP car, if I can.

This will make me very unhappy, but will be £310 better off each month. I will come into some money next year and will be debt-free in October, and able to buy a little car for cash.

Does anyone have any advice for how to do this? My car needs some work before I think they will take it back - or they will charge silly money for the repairs. It also has an insurance claim outstanding as some ****head crashed into it yesterday. :mad:

My car was bought with FGA Capital through Alfa Romeo.

And yes, I realise how silly it was, so no lectures required. :cool:;)

Not sure of the financial end but I believe you can VT a car after 50% is paid off,however it would need to be in good condition and with an insurance claim pending I assume it isnt.Also im not at all sure if you can sell your car as it belongs to the finance company until the last payments made but if you were able to sell it you may be in for more bad news if its an alfa romeo as the depreciation on them is severe and you will be very unlikely to get enough to pay off what you owe.

southernbelle

I have checked valuations and the depreciation is not too bad, however I don't believe I can sell it on a HP.

oldhand

southernbelle wrote: »

I have checked valuations and the depreciation is not too bad, however I don't believe I can sell it on a HP.

did your car sustain much damage?

lovinituk

thehappybutterfly wrote: »

or the 4th option which I only found about 2 weeks ago:

4) sell the car

That's what we're going to. Sell the car, clear the finance and buy a banger with what's left. It's all legit and quite common apparently.

Speak to your dealer - they will be able to advise.

Are you sure you can sell a car that still has finance on it? Why then are there HP checks available on cars? If you sold it and then never actually paid off the remaining finance owed, the finance company could take the car back off the person you sold it to as it is still technically theirs.

southernbelle

I have some bits to do to it, that my brother can fix in the main. The insurance claim is for bumper, alloy and wing mirror (not my fault - car was static parked at the side of the road at the time).

I have just phoned FGA and I have £393.26 to pay until I can VT - so not bad at all! :j

It does seem ridiculous to get rid now, but it's £310 extra a month...I'll keep telling myself that. I also won't be using it for 8 months next year, so I think it's worth getting rid. Then getting a new one when I return. I can always get a banger to use for a few months until I go away.

So: I have to pay for wing mirror arm and rear wiper arm. Plus £393.26 to bring it to 50%. I reckon about £500. Now where do I get £500 from?!

thehappybutterfly

lovinituk wrote: »

Are you sure you can sell a car that still has finance on it? Why then are there HP checks available on cars? If you sold it and then never actually paid off the remaining finance owed, the finance company could take the car back off the person you sold it to as it is still technically theirs.

Well, that's the cynical view and the one that we worry about! I admit I'm worried about getting screwed over - by a bounced or cancelled cheque etc. Or the buyer says they'll clear it and they don't etc. But on the other hand, they could clear it and I could refuse to hand the keys over..... It's a risky game but the same could be said for any simple cheque transaction.

I've spoken to people about this and with today's technology, you can make payments online via smartphone/laptop/over the phone etc. I envision sitting in my home with the buyer, I phone the credit company, maybe on speaker phone so everyone hears, ask for a settlement figure, the buyer makes the payment over the phone, it's verified and job done.

However, I'm going to be more comfortable doing this via a garage. Just because I'm a naturally wary person!

lovinituk

thehappybutterfly wrote: »

Well, that's the cynical view and the one that we worry about! I admit I'm worried about getting screwed over - by a bounced or cancelled cheque etc. Or the buyer says they'll clear it and they don't etc. But on the other hand, they could clear it and I could refuse to hand the keys over..... It's a risky game but the same could be said for any simple cheque transaction.

I've spoken to people about this and with today's technology, you can make payments online via smartphone/laptop/over the phone etc. I envision sitting in my home with the buyer, I phone the credit company, maybe on speaker phone so everyone hears, ask for a settlement figure, the buyer makes the payment over the phone, it's verified and job done.

However, I'm going to be more comfortable doing this via a garage. Just because I'm a naturally wary person!

I think the point I was trying to make is that nowadays it will much harder to sell a car that has outstanding finance on it. Any buyer in their right mind wouldn't go near it as its too risky. Of course I'm sure there are a few buyers out there that don't think things through completely!