HP Finance issues!

RBM369369

Well, not really issues -- I'm just struggling to repay it now and due to the nature of my job I cannot afford to have any negative entries onto my credit record.

Exactly 12 months ago I took out finance on a car from Arnold Clark for £9,000ish, which, after interest is up at £13,000 over the course of 60 months at repayments of £222.

Due to personal reasons I've had to take time off work to care for family and have had a limited income, which most of it goes fairly quickly.

I've read that my options basically are the following:

1). Make up 50% of the loan (£6500, minus the repayments?) and simply hand the car back.
2). Buy the car outright for the settlement figure.

My problem is that I don't have a lot in savings. Around £2,000 or so. I can't afford to pay the settlement figure and its still another £4,000ish away from half way, so it seems I can't hand it back either.

Is there anything I can do at this point?

I'm currently in contact with the Ombudsman with regards to the lending being irresponsible, due to another car finance company giving me every penny back that I'd paid on a lease. This was due to irresponsible lending and affordability checks not being carried out sufficiently. I'm on the same wage, same job etc currently as I was back then and my new finance company has given me more money! So hopefully the Ombudsman has good news for me, but with this aside -- is there anything I can possibly do at this stage?

Thanks in advance :-)

straighttalker

So you're looking at getting out of your HP agreement on a technicality when you were perfectly happy with the terms and conditions of the agreement when you put pen to paper and signed it and took delivery of the vehicle?

pd52

So this is the second time you've taken out car fianance you can't afford? and now you're trying to get out of it again? I'm sorry but this is just irresponsible!

LandyAndy

RBM369369 wrote: »

-- is there anything I can possibly do at this stage?

Thanks in advance :-)

Sell the car. Settle the finance. Buy something that fits your pocket.

Mercdriver

LandyAndy wrote: »

Sell the car. Settle the finance. Buy something that fits your pocket.

That will be a struggle if he is £4k before even half way through the repayments. Would you buy a car in this circumstance? HPI check comes back with massive amount outstanding.

Do you feel lucky, well do ya, punk?

https://youtu.be/V7Nci-GVuHE?t=1m22s

RBM369369

straighttalker wrote:

So you're looking at getting out of your HP agreement on a technicality when you were perfectly happy with the terms and conditions of the agreement when you put pen to paper and signed it and took delivery of the vehicle?

I'm not really interested which way I get out of it, just aslong as I do. I signed it when I was comfortable with money and due to recent changes meaning I need to stay at home more often to look after a family member, I'm no longer in that position.

pd52 wrote:

So this is the second time you've taken out car fianance you can't afford? and now you're trying to get out of it again? I'm sorry but this is just irresponsible!

It would be 'irresponsible' if I couldn't have afforded the car at the time of agreement, a year ago, which I could have and then continued to do so throughout the length of the contract, but as stated, due to personal issues I'm having to take alot of time off work and soon I'll be out of work all together. This is something I could not have predicted. The previous car was a hire purchase, meaning that you can either hand it back, buy it or take another lease out for another car. I chose to hand it back then some time later the FCA got in touch saying that the company had irresponsibly conducted themselves by not carrying out the necessary affordability checks before instructing the company to give me all of my money back. And to be quite frank, I came here for advice -- not a judgement.

Mercdriver wrote:

That will be a struggle if he is £4k before even half way through the repayments. Would you buy a car in this circumstance? HPI check comes back with massive amount outstanding.

Do you feel lucky, well do ya, punk?

According to my settlement figure of £9,000ish, if I were to put around £2,500 to that then someone could pick the car up for £6,500, something I think the cars worth. (3 series m sport, 40k miles, diesel). Its just a pain going down this route.

tberry6686

I'm currently in contact with the Ombudsman with regards to the lending being irresponsible, due to another car finance company giving me every penny back that I'd paid on a lease. This was due to irresponsible lending and affordability checks not being carried out sufficiently. I'm on the same wage, same job etc currently as I was back then and my new finance company has given me more money! So hopefully the Ombudsman has good news for me, but with this aside -- is there anything I can possibly do at this stage?

It would be 'irresponsible' if I couldn't have afforded the car at the time of agreement, a year ago, which I could have and then continued to do so throughout the length of the contract, but as stated, due to personal issues I'm having to take alot of time off work and soon I'll be out of work all together. This is something I could not have predicted. The previous car was a hire purchase, meaning that you can either hand it back, buy it or take another lease out for another car. I chose to hand it back then some time later the FCA got in touch saying that the company had irresponsibly conducted themselves by not carrying out the necessary affordability checks before instructing the company to give me all of my money back.

The quotes above tell 2 completely different stories. The first says you were missold finance, the second that you were comfortable with your agreement.

You want advice - stick by the terms and conditions that you willingly agreed to and stop trying to weasel out of your responsibilities.

burlington6

You're a chancer OP. You got the new car and now you've had enough of paying for it.

Man up, deal with the situation and don't do it again.

dannyrst

If you could afford the repayments comfortably then the lender wasn't irresponsible in lending. It isn't up to them to think "What if this person looses their job?!". It's up to you.

LandyAndy

LandyAndy wrote: »

Sell the car. Settle the finance. Buy something that fits your pocket.

Mercdriver wrote: »

That will be a struggle if he is £4k before even half way through the repayments. Would you buy a car in this circumstance? HPI check comes back with massive amount outstanding.

RBM369369 wrote: »

According to my settlement figure of £9,000ish, if I were to put around £2,500 to that then someone could pick the car up for £6,500, something I think the cars worth. (3 series m sport, 40k miles, diesel). Its just a pain going down this route.

But it might be the only way. Sometimes things are a pain.

Herzlos

Talk to the finance company and see if you can trade it in for something cheaper over a slightly longer term. It should drop your debt a bit (say you get £5k trade in and your new car is £3k you're £2k further out of the hole) and reduce your payments.

Selling it and covering the difference is the best way out financially. You're not going to get to hand it back early without putting a lot of money in.

Out look at refinancing the balance, but with 4 years left to go on it you might struggle with a much longer term.