Car debt and reposession

moneymaker2

Could your son not get a cheaper personal loan?
The only reason I ask is that he will find it difficult to sell the car to someone as a hpi check will show that there is finance on the car and the buyer will have no guarentee that the finance will be cleared off once the car is sold.
Try moneysupermarket for loans they take all your information and give you an idea of who may approve you for a loan, I think the cheapest one around at the moment is approx 6.3%. This way he could still keep the car if he wanted or because the car will be ''paid off'' with the unsecured loan he would be able to sell it on and clear some money off the personal loan.
Hope this helps. Laura

A_Nice_Englishman

How did your son manage to get the loan in the first place? Surely they must have checked he had sufficient income to make the repayments?

rog2

A_Nice_Englishman wrote: »

How did your son manage to get the loan in the first place? Surely they must have checked he had sufficient income to make the repayments?

One would assume that BH checked all that, but I have to say, in my case, they did not appear to be very thorough at all - I got a very quick phone call (the garage had 'arranged' the finance) asking me where the deposit had come from - the reason given was to satisfy themselves that there was no 'money-laundering' and to try to sell me PPI, which I declined. There were no questions about my earnings, niether had I been asked about these by the garage. At the end of the phone call, I was informed that the agreement was confirmed. I signed the agreement the day that I collected my car, when in all fairness, my mind was more focused towards my new car than a piece of paper.
What is it that they say about hindsight?

A_Nice_Englishman

rog2 wrote: »

One would assume that BH checked all that, but I have to say, in my case, they did not appear to be very thorough at all - I got a very quick phone call (the garage had 'arranged' the finance) asking me where the deposit had come from - the reason given was to satisfy themselves that there was no 'money-laundering' and to try to sell me PPI, which I declined. There were no questions about my earnings, niether had I been asked about these by the garage. At the end of the phone call, I was informed that the agreement was confirmed. I signed the agreement the day that I collected my car, when in all fairness, my mind was more focused towards my new car than a piece of paper.
What is it that they say about hindsight?

Blimey!

To the OP: I'm assuming your son is not working (perhaps in full time education?) and therefore a non-taxpayer if he can't afford £50 a week. At the minimum wage of £4.60 an hour at age 19 he would need to work just over 10 hours a week to meet the loan repayments. I would suggest this is his best option.

LJW_2

Thanks to all the above posts for all the advice given. In answer to some of the questions. My son did try to get a personal loan with a lower rate but could only get £3000, this probably shows that he shouldn't really have got the loan from BH for £8000 + £4000 interest!!

He is on a very low wage as he is an apprentice joiner and didn't show any wage slips to the garage who arranged the loan!!

I agree that Martin needs to set sessions in schools at a young age to teach them about finances in the future. He did recently do a program I saw on TV with school aged children and it was brilliant so well done Martin.

As a parent I have discussed finances with my son and sat with him over the last few years and have shown him advertisments in papers etc, and read all the small print. So he has had all this advice but saw the nice shiny car and didn't think about the following 5 years!!

As it stands now he can't get loan to cover the price of the car, he can't afford the payments. BH have not offered any advice on how to solve this situation so the car is sat on the front with no insurance (yes I know it's risky) waiting for them to pick it up as requested.

My son will be in debt for thousands of pounds for many years. But on the bright side, he won't do this again! Will he!!!!

dubgirl

hi LJW, just been reading the thread and wanted to let you know that I have had dealings with BHF and I agree with the other posters who have also had dealings with this finance company. If the car is sitting on your drive is it taxed, if not then get a SORN, you dont want your son to be done for no tax as well.

PS sorry I cant give you much advice about the finance side of things - I had a car with them and was told that i could only return it when i had paid half.

LJW_2

Hi dubgirl, thanks for your reply, just checked the car and it has tax, didn't think about that. I don't think he needs any more debts!!

A_Nice_Englishman

Did he consider getting another job for ten hours a week so could service the loan and keep the car as I suggested in my earlier post? It seems a better solution than being in debt with nothing to show for it.

I agree that schoolchildren should be taught about personal finance. Perhaps a GCSE in personal finance will one day be required to take out a mortgage?!!

LJW_2

Hi A Very Nice English Man. Yes my son has applied for jobs but is struggling as his apprenticeship is 7 to 5. He has applied for shop work and bar work but feel that they are reluctant to take him on due to him working full time! But he is still looking but may take time.

Treadstone009

I personally dont think the loan provider was that wrong to provide him with the car, for many a vehicle is detrimental to employment prospects and he is in full time employment, i think you should encourage him to make a few cut backs each month and perhaps consider subsidising him for awhile until he leaves home, he'll be earning a fair bit more once he actually qualifies fully, other option is to sell the car and make a settlement offer but then he'll most likely want another car anyway.