Car on HP, but don't need it now!

millie.molly.mandy

A bit of advice please.
My son in law bought a car on finance and pays £150 a month, he still has 3years left to pay, he now has a company car, and apart from no longer needing the car is struggling to pay for it as his new job is lower paid.
He went back to the dealer who says they won't buy the car back, and he can't sell it as finance is outstanding on it. With this debt outstanding, he will struggle to pay it.
The dealership clearly have now washed their hands of things, which I suppose it to be expected.
Any ideas what he can do, he will be unable to get another loan to clear the HP as he has too much on finance now.

immoral_angeluk

He could look at voluntary termination but he'd be liable to pay 50% of the agreement so would presumably still have some left to pay unless it was a 6 yr agreement (unlikely).

http://www.adviceguide.org.uk/england/debt_e/debt_borrowing_money_e/debt_types_of_borrowing_e/hire_purchase_and_conditional_sale.htm

Mrs_Arcanum

Try talking directly to the Finance Company to see what the may be able to do.

Apples2

Can't he turn down the Company Car?
Most companies will offer a cash alternative which I assume the HP'd car will satisfy.

Cornucopia

He can sell it, as long as the outstanding finance is paid off in full at the point of sale. This is easiest to accomplish with a trade sale, but is also potentially do-able with a co-operative private buyer.

27col

I seem to remember my son buying a car that the private seller had on some sort of credit. As I recall, we went to an office where we paid off the finance and then took away the car. This obviously would only work if there was a local office in which to do it.