Should I Get Rid Of My Car?

cloudnine_2

Hi Everyone. Not sure what to do about my car . ( Hey, I have a car so, I'm grateful for that !) Anyway, I owe £20K to BMW on a car on HP which will be 3 years old in December 2007. The car is worth max: £13K ( Can you believe the depreication???) I pay £497 every month and haven't defaulted on the loan. However, I'm speaking to CCCS on Friday to try to sort out my £77K overall debts and wonder now if I should have the car repossessed or, will BMW agree to a DMP as say, a credit card company would? Probably not. My concern is that is they take the car back, they'll say its only worth £9K, for example, and then try to recover £11K from me for the short fall, plus perhaps admin charges... Do CCCS also liase with cases like cars/HP etc? Thanks for any guidance...

immoral_angeluk

How far are you into the HP? After 2 years you can normally hand back the car and terminate the agreement.

malestrom07

The hand back is available when 50% of the Agreement Price is paid, you can hand back, walk away and owe nothing. They probably won't do a DMP on the finance as the security or vehicle will have depreciated much more by the end of the life of the DMP and their threat of snatching it back is depleted. It will be worth much less than you presently owe on it.

cloudnine_2

I contacted BMW and they declined stating that if I'd borrowed £25K that would be Ok but I borrowed £29K so , no, I can't hand it back. Thanks for the responses

malestrom07

I'm not sure that they are correct, as long as 50% of the value of the agreement is paid you can hand the car back. I'd double check the agreement if I were you. HP is HP.