In a pickle with hire purchase!!

Grumpyhitch

Hi, apologies if this is posted in the wrong section!
Took out car finance with advantage car finance in October '13 first payment made December 6th made 2 payments since then. In the meantime offered and accepted a job that comes with a company car.
I have no real issues with the car I bought but ultimately it's inappropriate for my needs and is now surplus to requirements.
Unfortunately the value of the car is approx 3k and I owe around 5k, does anyone know the best way to approach this with advantage? I have tried speaking to them about voluntary termination but they are very cloak and dagger about it all.

What happens with the shortfall? How aggressively is it pursued? Do I get an interest rebate when I am VT'ing the agreement?

The A.P.R is a whopping 42% so it's a fairly expensive monthly outlay payment at the moment!

Any advice appreciated!!

claret_mike

VT is usually available when you have paid 50% of what you owe.

You can ask them to take the car back and continue to make payments until the difference in what you car was bought back for and what you owe I would imagine.

Grumpyhitch

Hi mike, thanks for the reply, do you think it would be the shortfall between the 50% total or the shortfall of the total outstanding balance currently - which without the interest rebate is over £8grand?

molerat

To VT you need to pay the shortfall on the half, the actual figure is on your agreement.

Grumpyhitch

Hi molerat, thanks for the heads up. When they take repossession of the vehicle and sell it on does this get taken off the half figure and I just pay the difference? Or do I have to pay the half amount and they get to keep the proceeds when selling off the vehicle?

CLAPTON

Grumpyhitch wrote: »

Hi molerat, thanks for the heads up. When they take repossession of the vehicle and sell it on does this get taken off the half figure and I just pay the difference? Or do I have to pay the half amount and they get to keep the proceeds when selling off the vehicle?

when you VT then they take the car and you have no further debt

unless of course they argue that there was more than reasonabe 'fair wear and tear'

Clive_Woody

Grumpyhitch wrote: »

Hi molerat, thanks for the heads up. When they take repossession of the vehicle and sell it on does this get taken off the half figure and I just pay the difference? Or do I have to pay the half amount and they get to keep the proceeds when selling off the vehicle?

You pay 50% and hand back the car. If you haven't paid back 50% you could hand back the car but you would still need to pay 50% this would not come from the sale of the car.

Grumpyhitch

Thanks Clive, sounds like it's going to make better financial sense to sell it to webuyanycar and pay any shortfall with the redemption figure I have been given. Cheers

MEM62

Grumpyhitch wrote: »

Thanks Clive, sounds like it's going to make better financial sense to sell it to webuyanycar and pay any shortfall with the redemption figure I have been given. Cheers

The car is not yours to sell. If it was purchased using HP it remains the property of the finance company until the finance is settled.

andyuk01

Keep the car, opt out of your company scheme and take whatever additional cash they offer, VT the car when you reach 50% and opt into the company scheme

CherlokHomes

MEM62 wrote: »

The car is not yours to sell. If it was purchased using HP it remains the property of the finance company until the finance is settled.

The OP can sell the Car to Webuyanycar as these will settle the finance, the OP would need a settlement figure letter from the finance company.