Cancelling a Black Horse loan with a static caravan

mzytbch

Hi,
We purchased a static caravan approx 18 months ago and would like to leave the park due to various changes.  Does anyone know if we can cancel the loan early by repaying 50% of the original loan and then hand back the caravan?  I have read that this is possible with car PCP/HP agreements but not sure if it applies to caravans as well ?

Many thanks.

[Deleted User]

What sort of loan is it?

mzytbch

It's a 10yr HP agreement.  I've just had a further look through the original paperwork and it does look like we can cancel but need to pay 50% of the original loan inc all interest charges, and not 50% of the amount that it would cost to settle the full loan today.

AnotherJoe

More details on the loan needed though i suspect you are on a loser anyway.

Was the BH loan via the park and is secured on the caravan, or did you take out a loan from BH and then pay the park with the cash that gave you?

If the latter, then forget it.

If the former, eg the park arranged the loan, then look at the small print about redemptions.

DrEskimo

mzytbch said:

It's a 10yr HP agreement.  I've just had a further look through the original paperwork and it does look like we can cancel but need to pay 50% of the original loan inc all interest charges, and not 50% of the amount that it would cost to settle the full loan today.

Correct.

Personally, I don't see the logic of paying to get to the 50% point early. You might as well just keep paying the loan until you reach year 5 and then VT. It will cost you the same and you still get use of the caravan for the next X months. 

The alternative is to see how much you could sell/trade the caravan and offset that figure with the current finance settlement. If that's less than paying to get to VT, that would obviously be a cheaper method. 
Whether you would get a good price under the current climate is of course another hurdle....

MinuteNoodles

If you VT you pay 50% of the cost of the static caravan to end up with the sum total of nothing at the end of it for the £1,000s or £10,000s you'll have forked out. Paying 50% to VT might end up being the most hasty, worst decision you make and one that in no small part is influenced by your state of mind because of the lockdown - small things become much bigger in your mind when you've got nothing else to do but sit there and ponder about them. A lot of the caravan fraternity are also questioning selling too.

It's a static caravan but it still has wheels. The caravan isn't welded to the floor at the site. My friend transports 100s of them a year all over the UK from manufacturer to site, from site to site, from site to storage so you can move it. It would be better to decide to either sell it or just let it out for holidays and save yourself thousands or if the only issue is the site then find somewhere else to site it and pay a caravan transport company like Hansons to move it for you.

mzytbch

Thanks for the replies. The issue is that in addition to the loan repayments we also need to pay site fees. Taking a hit on the caravan and settling early would lose the caravan but would mean not being committed to paying site fees for the next few years. We’ll have a think on it anyway. 

unforeseen

It's a static caravan but it still has wheels. The caravan isn't welded to the floor at the site. My friend transports 100s of them a year all over the UK from manufacturer to site, from site to site, from site to storage so you can move it.

The only problem doing that at the moment is that the site would probably let you take it BUT is there a site that would accept it considering that they are officially closed? You end up with your caravan stuck on the back of somebody's low loader

[Deleted User]

A used static caravan will be next to worthless, there will be fees to remove it from the site, fees to keep it etc etc. One Haven park I was looking at wanted over 9k A YEAR just in fees! They are one of the worst "investments" anyone can ever make. I reckon giving it back at 50% would still be cheaper overall than hanging onto it.