Black Horse car finance query

misterbob

Hi all,

I have a car with Black Horse - when I took it I had around 4k owing from a loss on the car I traded in - the dealer (main Nissan dealer) effectively added it on to the price of the car I purchased.

Making payments hasn't been a problem but due to another event I've been put under some financial pressure and I'm looking at way to cut off some overhead. If I handed the car back today I'll have a balance of around 4k to settle (the car pretty much clears itself). My question is - is it possible for me to be able to hand the car back in some shape or form and then clear the 4k separately (I don't have the 4k at present so would need to spread it out) as an ongoing loan?

This course of action isn't 100% necessary, at worst I can carry on but it would make life much much easier. I also don't want to it impact on my credit rating ideally.

So is this possible?

All advice much appreciated.

forgotmyname

You will probably need to take out an additional loan. When you hand the car back it wont be long before they ask for the shortfall.

If you dont payup then your chances of getting another loan will dwindle.

National_Debtline

Hi Misterbob

Welcome to MSE. Can I confirm this is a hire purchase (HP) agreement? That means you don’t own the car until you have finished paying the whole of the credit agreement. Assuming it is HP you have the right to terminate the agreement (as long as the creditor has not already ended it) and you will be held liable for 50% of the original agreement minus the payments you have already made. You can find details of the calculation and a sample letter to terminate here https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx

Any debt you are left with will be due straight away. You can try and negotiate a payment plan with Black Horse but this will potentially affect your credit report. If you want to keep the car, other options include trying to extend the term of the agreement to reduce your monthly payments or a time order.

A time order is an order from the county court to change the terms of your credit agreement (it must be Consumer Credit Act regulated), for example reducing the monthly payments. It’s usually considered when you’ve had a temporary drop in income and you can’t apply until an arrears or default notice has been issued, so again there would be an impact on your credit report. You will need specialist advice from one of the free debt advice agencies on this option.

Susie
@natdebtline