Secured Loan - Car Voluntary Termination

brooky148

Hi All,

I have a car that i financed through Creation Consumer Finance. I believe that it is not a Hire Purchase but a Personal Loan.

I started the agreement in Oct 2011 over 5 year at £154 p/m. I want to know what my options are for getting rid of the car. The settlement is currently £4767 which is more than i can afford to pay off so not really an option.

Any help on this would be great

Thanks

SeanG79

Because its a personal loan you cannot VT the car.

You can sell the vehicle at any time if its a personal loan as you already hold clear title, but you will still be liable for any shortfall between how much you sell the car for and the current settlement figure.

You can overpay at any time but this usually only shortens the term and doesn't reduce the monthly payments.

brooky148

Hi,

Its not a loan that I got the money and spent. It was done through carloans4u. The car does show outstanding finance on a HPI check. Does this mean that the loan is fixed to the car?

chanz4

ask them, or refer to your agreement

molerat

The top of your paperwork will tell all, either :

Hire Purchase Agreement regulated by the Consumer Credit Act 1974

or

Fixed Sum Loan Agreement regulated by the Consumer Credit Act 1974

brooky148

Hi,

Its a fixed sum loan

Apples2

Then there is no security with the car.

As it is carloans4u maybe we should consider it has finance on it from the last time they sold it to someone who couldn't afford it

molerat

It is not unusual for these car loan companies to put HPI markers on vehicles even though they have no legal right to do so.

brooky148

Hi,

I did my own HPI on the car not long ago and the outstanding finance is showing creation consumer finance so it must be the agreement I have. If the agreement is not secured on the car how can I get the HPI changed?

Do they have a legal right to do this if the loan is not fixed on the car?

Thanks

molerat

Does it show as in the example https://www.hpicheck.com/vehiclecheck/report/sample/

This must pose a data protection question.

brooky148

Hi,

See pic

Thanks for helping me with this!