Hp finance help?

JamieLee090

Evening guys

It's late I'm stressed and I cannot sleep due to worrying about this issue so I'm hoping you can help me.

I took out HP finance last month on a car and my first payment came out today.

However the last week or so I've had a couple of bombshells hit me. The rent on our property is increasing on renewal and also I've had to take a pay cut at work due to unforeseen circumstances.

We have a 7 month old girl and she is priority for me so I'm seriously considering handing my car back in order to cut costs (luckily for me my work is within a 5 minute walk) and my partner already has a car which she needs for work as she works a good 30 minute drive away.

However my issue lies with how HP works. I've read up saying you can cancel with no cost within 14 days.

As it's been a month that's out of the question I'm guessing. My contract states I have to pay half the total amount back £8000 in order to hand the car back and not pay anymore?

So what happens if I hand the car back saying I cannot afford the repayments? Do I need to still pay back the £8000 or so even though I would be handing back the car to them?

Or would they take it back sell the car at auction and whatever is left I owe?,for example half the total amount payable is £8000 if the car sold at auction for say £6000 I would owe £2000?

Or is that not how it works?surely they csnt take the car back and I still owe the £8000?

Any help appreciated as I'm tired and stressed and very worried.

Thanks

DUTR

You may be stressed but it does seem that you are not thinking before doing

You were already turned down for credit, yet knowing your family circumstance, you still forced through to get a car (which from your thread you didn't need).
I don't know how you are going to get through it , but you must.

neilmcl

All seems familiar - https://forums.moneysavingexpert.com/discussion/6023199/voluntary-termination-hp

DrEskimo

The 14 day cooling off period is for the finance only. It isn't for the car. If you cancelled the finance you would still need to find a way to pay for the car.

You need to treat it just as though you bought the car for cash. Ring around different dealers and different car valuation services and find the best price for the car. If you bought it for a good price, hopefully there won't be much of a shortfall between the price you paid and the trade in valuation.

foxy-stoat

So you handed back your other car that you bought on HP and complained about the "extortionate" charge for collection....then you bought another car on HP and 4 weeks later your trying to get out of it?

Back to your actual questions:

If you get to 50% of the purchase you can VT, you already know this as you have done it before.

If you hand back the car saying I cannot afford it, your credit file will be trashed for 6 years, they will sell the car for whatever they can and add charges to your default, maybe get a CCJ against you, it will be for the full amount + extras.

You cannot say to the finance company, heres the car back, can you sell it for me and whatever the difference is I will owe you.

Either stop paying the finance and let them repossess it and have your credit file trashed or sell it on the open market and pay the difference at the point of sale.

Oh and stop making financial decisions, let your other half do it as you have a young family to support.

Herzlos

The finance can be cancelled within 14 days if you return the money, but you can settle at any time by paying it back.


The car on the otherhand, no. You'd need to sell the car and pay the finance with the shortfall. If you let them repossess the car you'll be hammered on fees and your credit rating will be destroyed.
Is the finance secured on the car? If so you'll need get their approval or clear the car on the spot, so private buyers won't be keen.


At least if it's only £8k we're talking about a used car or a huge deposit. Your best bet is to go back to the dealer you bought it from and see what they'll buy it back for, but expected to get hosed to the tune of about £2k.


There's no way out of this that isn't hugely expensive.

Car_54

foxy-stoat wrote: »

Oh and stop making financial decisions, let your other half do it as you have a young family to support.

I know it's hard to imagine, but she might be worse ...

loskie

are we allowed to say that the OP is an idiot? Or is that unacceptable?

Kentish_Dave

You need to start behaving like an adult, and stop being so stupid.

May I ask, if your family really matters, what we’re you thinking as you signed away their financial future? What was your actual plan?

What is done is done, but next time, would it be worth actually thinking about your baby, not damaging her future while pretending to care?

Kentish_Dave

Ok, that was a bit severe, sorry, but really, what were you thinking would happen?