Black horse finance - Help

7Cyanide58

Hi all 

I had a car through black horse finance last year. My circumstances have dramatically changed and which has caused me to re evaluate if I can afford the car. 

I am looking at handing the car back as it is on PCP but I don't know if there is anyone else that has been in a similar position? Just want to know how much it would cost me to close the agreement early. 

Thanks 
Aaron 

DrEskimo

Broadly speaking you have two options:

1) exercise your right to Voluntarily Terminate the agreement. This involves paying 50% of the total amount payable of your agreement. This includes your deposit, all monthly payments and the final balloon payment (plus any fees). The figure will be listed on your contract agreement. 

Whether you are close to this amount will depend on the nature of your agreement and how many months into the agreement you are. Broadly speaking, you typically reach this 50% point a few months before the end.

2) You get a settlement figure today of how much it would be to settle the finance in full, and then get a trade/sale value of the car from a dealer or garage (get a range of valuations as it will vary). If there is any shortfall between the valuation and your settlement, then you are liable to pay it.

Essentially you look at the cost to VT, and you look at the cost to trade it in/sell it and settle the finance and pick which ever one is cheaper.