Help With Car Finance Please!!

SoVain

Good afternoon all.

We have 2 cars in our household that are both on finance. One of the cars was purchased with a bank loan and the other is on a HP agreement with Black Horse Finance. What we as a family are thinking of doing is changing both cars. The car that was purchased with the loan has positive equity so selling that would enable us to clear the loan and have around £1000 left. However the car that is on HP still has 4 years or so of payments left. Does any MSE know if it is possible to change the car and transfer the HP agreement to the new car? Any help or advice would be most appreciated.

Many thanks.

BeenThroughItAll

You won't be able to 'transfer' your HP, but you may well be able to refinance, working in the inevitable shortfall in the HP into the new agreement; but you'll then end up with an even bigger gap between the value of the car and the outstanding finance.

DUTR

SoVain wrote: »

Good afternoon all.

We have 2 cars in our household that are both on finance. One of the cars was purchased with a bank loan and the other is on a HP agreement with Black Horse Finance. What we as a family are thinking of doing is changing both cars. The car that was purchased with the loan has positive equity so selling that would enable us to clear the loan and have around £1000 left. However the car that is on HP still has 4 years or so of payments left. Does any MSE know if it is possible to change the car and transfer the HP agreement to the new car? Any help or advice would be most appreciated.

Many thanks.

As the vehicles are financed I guess they are pretty modern, if you are only changing for vanity's sake then expect to be in further debt.

SoVain

DUTR wrote: »

As the vehicles are financed I guess they are pretty modern, if you are only changing for vanity's sake then expect to be in further debt.

They are both modern cars but as one is used to travel 15 miles a day we feel we could get something a little cheaper to do this job. When we originally purchased the above car (on HP) the daily mileage was 60 per day so we wanted something new and reliable. However as job location has changed we feel it may be best to change. What we were thinking of doing was selling the car that has been paid for with a bank loan, pay the loan off and use the approximate £1000 equity to buy a car for the 15 mile daily journey. Then change the car on HP for something modern. Currently our payments for the 2 cars combined is nearly £400 per month.

DUTR

SoVain wrote: »

They are both modern cars but as one is used to travel 15 miles a day we feel we could get something a little cheaper to do this job. When we originally purchased the above car (on HP) the daily mileage was 60 per day so we wanted something new and reliable. However as job location has changed we feel it may be best to change. What we were thinking of doing was selling the car that has been paid for with a bank loan, pay the loan off and use the approximate £1000 equity to buy a car for the 15 mile daily journey. Then change the car on HP for something modern. Currently our payments for the 2 cars combined is nearly £400 per month.

I could more understand changing one car but not both, even if your plan worked (which I have lots of doubts about) how much of the monthly do you think will be reduced?
You have 2 good cars of which you know their history, 45 miles a day reduction is already saving you a good £140 month.

mark5

DUTR wrote: »

I could more understand changing one car but not both, even if your plan worked (which I have lots of doubts about) how much of the monthly do you think will be reduced?
You have 2 good cars of which you know their history, 45 miles a day reduction is already saving you a good £140 month.

Agree with the above.

Doing such low mileage and with fuel so cheap, I doubt you would save much money at all for the 15 mile daily journey based on your average car.

Unless it becomes unreliable I would keep the car on finance until it reaches the point where it's not in negative equity at part exchange.

I've always thought finance can be split into good and bad and to me rolling negative equity into a future finance agreement is bad finance.

You don't say what cars you want to replace and what you plan to buy,this might Chang responses!