HP Agreement - Black Horse, early get out clause?

EmJ86

In Feb this year, I took out finance on a second hand Qashqai (61 - 2012 reg) over 5 year. I love the car but unfortunately our financial situation has drastically changed meaning we can no longer afford the car.

We still need a car but the Qashqai is so costly in terms of the finance and Diesel we're spending money on it we don't actually have! So we're looking to get a really cheap second hand car that we can possibly buy outright thats about a 2005 reg.

What I want to know really is how pheasable would it be for us to sell the car and use what we get from the sale to pay off the finance company? I've only had the finance agreement out for two months so I've no where near payed half of it off and getting a loan out wouldn't be possible as my credit score is so poor no one would consider giving me one.

If someone could get back to me as soon as possible then that would be greately appreciated, I want to try and get this sorted asap.

Many thanks,
EmJ

chalkie99

If it's an HP agreement then you don't own the vehicle and it's not yours to sell.

You need to contact Black Horse to find a solution which might involve an approved dealer taking it from you and settling the finance but you would need to make up the shortfall at the time from your own funds, presumably taking quite a big loss.

EmJ86

Thanks for the response, yeah I understand its not mine to sell as it's not mine until its paid off. I wasn't thinking of selling it privately I was planning on finding out if a dealership could help us out in anyway, i.e. buy the car off us and pay the finance company, I make up the shortfall.

If it's a substancial amount I'd have to pay it may not be worth going about it that way.

Would I be able to hand the car back to them at all? I've never dealt with Black Horse before, previous car finance was with RCI Financial Services.

Many thanks,
EmJ

ch3101

My advice is to phone black horse as soon as you can.
You've only had it for 2 months so I can only assume that you're going to owe them some money even with giving the car back.

But only they can give you the info you need and advise you properly.

Olza23

Your 2 months into a 60 month agreement and will be in negative equity. To be honest I think you may need to look elsewhere for cuts as there is not a lot you can do with the car!

There will be a clause where you can hand back the car after 50% of the payments are made, but a bit of a way off for you.

Cornucopia

It all depends on the figures - if a deposit was paid, then it may not be too bad. Black Horse will know the HP figures (though you can probably guess that they will want back basically what was borrowed, at this stage). A dealer will give you an idea of the value of the Qashcow. Then you just need to match them up.

SeanG79

Is the finance a HP agreement, PCP or Fixed term loan? B/Horse offer all 3 options. if it was a fixed term loan there is no security meaning you could sell the vehicle before settling the finance. (For b/horse to have approved, your credit cant have been too bad, also taking into account they offered you a 60 month term).

The agreement will be regulated by the CCA so b/horse will only charge 58 days interest on top of the capital amount outstanding. Whether it will be feasible or not will depend on the size of the deposit you put down, and the current value a dealer will give you vs. how much you had borrowed on finance.