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Car HP.
OK I realise this is really weird but I need advice.
My husband bought a car on hp and before he finished the payments he traded his car in for another car again on hp again before he finished the payments he traded this car in for yet another car. He is now paying over £300 a month for a car that is worth less than £10,000.
I know most people will say !!!!!! but this does`nt help me the wife who did`nt realise what he was doing until it was too late.
I`ve checked and it seems this is quite legal even though morally and ethically it is so wrong.
My question is is there anything that can be done? How can finance companies allow this to happen? Please don`t suggest divorce. My hubby may have been mislead but he is still my hubby. Basically he is paying for 3 cars when he only "owns" one.
My husband bought a car on hp and before he finished the payments he traded his car in for another car again on hp again before he finished the payments he traded this car in for yet another car. He is now paying over £300 a month for a car that is worth less than £10,000.
I know most people will say !!!!!! but this does`nt help me the wife who did`nt realise what he was doing until it was too late.
I`ve checked and it seems this is quite legal even though morally and ethically it is so wrong.
My question is is there anything that can be done? How can finance companies allow this to happen? Please don`t suggest divorce. My hubby may have been mislead but he is still my hubby. Basically he is paying for 3 cars when he only "owns" one.
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Comments
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Buy car on HPBefore end of term trade in car, dealer pays off HP and sets up new agreement rolling any negative equity into new dealRinse and repeatHe is not paying for 3 cars, he is paying for the negative equity on the 2 cars he traded in. No dealer would risk taking a car that has outstanding finance without clearing it. Are you sure it is HP and not loans, that is the only way he would be paying off 3 different accounts.I am afraid there is only one person at fault here and you need to decide the punishment !4
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He is not paying for three cars.
He has one car worth £10k.
He also has a finance agreement worth £???k (you don't say in the OP) so the £300 per month is to pay for that money that he had and used. It is irrelevant to the finance company what he used the money for.
To really understand this, though, the important numbers are- how much debt is remaining?
- how long is the £300 payable for?
- What APR?
Using a calculator (https://www.moneysavingexpert.com/loans/personal-loan-calculator/) £10k over 3 years at 4% APR is £295 per month. If the loans match this profile, I'd say it is not too bad.
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Kerenza said:OK I realise this is really weird but I need advice.
My husband bought a car on hp and before he finished the payments he traded his car in for another car again on hp again before he finished the payments he traded this car in for yet another car. He is now paying over £300 a month for a car that is worth less than £10,000.
I know most people will say !!!!!! but this does`nt help me the wife who did`nt realise what he was doing until it was too late.
I`ve checked and it seems this is quite legal even though morally and ethically it is so wrong.
My question is is there anything that can be done? How can finance companies allow this to happen? Please don`t suggest divorce. My hubby may have been mislead but he is still my hubby. Basically he is paying for 3 cars when he only "owns" one.What do you expect to be done? Finance companies aren't ethical, they operate to make money, charging interest at all, to some people, is unethical. To others, trying to find ways out of paying what is owed is unethical.The answer is to stop your husband doing this before he gets destroyed by debt and goes bankrupt - try and work out why he feels the need to keep swapping cars and fix that. In the mean time, pay off this car and use it instead of replacing it.1 -
There is no indication that hubby is in debt, struggling with the £300pm repayment, or regularly swapping cars. No timescale was quoted: it could be once every 3 years or so?No free lunch, and no free laptop0
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macman said:There is no indication that hubby is in debt, struggling with the £300pm repayment, or regularly swapping cars. No timescale was quoted: it could be once every 3 years or so?
Where did I say he was struggling? However if he keeps the cycle up of trading in cars, getting new finance, increasing his debt and increasing his payments, he will be.0 -
At some point if there is negative equity being rolled the finance company will stop lending.
sounds as though the OP needs to have a full open discussion with other half.0 -
Deleted_User said:macman said:There is no indication that hubby is in debt, struggling with the £300pm repayment, or regularly swapping cars. No timescale was quoted: it could be once every 3 years or so?
Where did I say he was struggling? However if he keeps the cycle up of trading in cars, getting new finance, increasing his debt and increasing his payments, he will be.
£300 per month on £10k car may not be a poor deal.0 -
Grumpy_chap said:Deleted_User said:macman said:There is no indication that hubby is in debt, struggling with the £300pm repayment, or regularly swapping cars. No timescale was quoted: it could be once every 3 years or so?
Where did I say he was struggling? However if he keeps the cycle up of trading in cars, getting new finance, increasing his debt and increasing his payments, he will be.
£300 per month on £10k car may not be a poor deal.0 -
To understand whether what you have said is a problem, we would need to understand the whole picture....such as;
- What was the first cars part exchange value vs settlement? If negative, was it put in to the 2nd car finance agreement?
- Again, what was the second cars part exchange value vs settlement? If negative, was it put in to the 3rd car finance agreement?
- What was the reasoning for changing cars and how often?
- What was the reasoning for a HP over a PCP if he changes fairly regularly?
£300pm for a £10k HP loan sounds pretty reasonable to me, most HP loans max out at 60 months.
again, we do not have any information as to the structure of the loan (APR, TERM ETC)
With HP finance you will have the option to Voluntarily Terminate the agreement once 50% of the total amount payable has been achieved, so if money is tight you could look at doing this or refinancing the deal on a lower APR rate.
rolling negative equity is something that happens, it can be easily done, however it is not an accepted practice and is in effect against FCA regulations.
unless you can’t afford the repayments, I see no issue here.
Save £5k in 2024 challenge #32
Saved Total = £6,481.35 / £5,000 (Nov24)
Secured/Unsecured loans x 1
Credit Cards x 7 (total limit £35,500)
Creation FS Retail Account x 1
0% Overdraft x 1 (£0 / £250)
Mortgage Outstanding - £139,149.17 (Payment 6/360)
Total Debt = £1,687.50 (0%APR) @ £112.50pm
Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc0 -
Deleted_User said:macman said:There is no indication that hubby is in debt, struggling with the £300pm repayment, or regularly swapping cars. No timescale was quoted: it could be once every 3 years or so?
Where did I say he was struggling? However if he keeps the cycle up of trading in cars, getting new finance, increasing his debt and increasing his payments, he will be.
It used to be routine for people to change their car every 3 years, whatever the means of finance. Obviously, if he's swapping it in every year, the odds are that he's increasing the debt, but we don't have any actual evidence of that.No free lunch, and no free laptop0
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