hp on car

shezzy

Could anybody give me some advice, we have a car that we got on hp with blackhorse through carcraft 3years ago, we are having difficulty paying the agreed monthly amount, the car was 7000 but through hp rose to 16000, so we owe 4000 on it. What happens if we cannot pay any more payments, will they take the car back or can we sell it and pay it towards the amount left?

Any advice would be great

shezzy

daveyjp

If you have paid more than 50% of the payments you can return the car with no further payments required.

Look on the back of the finance agreement for details.

shezzy

nothing on the back of the agreement ??

PasturesNew

look on the front?

shezzy

nope....nothing there, just figures of the amount payable, three years it was £9295 with apr 16.9 and over five years adds upto £16174, yikes

shezzy

just seen plan "personal loan" at the top of the page.....does that mean we can sell it and it's not on hp then?? sorry i sound dim!

peggydoodaa

shezzy wrote: »

nope....nothing there, just figures of the amount payable, three years it was £9295 with apr 16.9 and over five years adds upto £16174, yikes

Contact Blackhorse & find out a final settlement figure. If you can sell the car privately for that price or more, then it might be worth doing it to pay off the finance.
You may be hit with fee for paying it off early, ie. a month's worth of interest which you should check is included in the settlement figure.

shezzy

wonder if they would just take the car and call it quits as we still owe £4500 and it will sell for about £2500 if we are lucky?

tupperware

shezzy wrote: »

wonder if they would just take the car and call it quits as we still owe £4500 and it will sell for about £2500 if we are lucky?

If it is on personal loan do NOT under any circumstances attempt to return the vehicle. It would be sold at an auction and you wouldn't get anything near the value of the car. If you are desperate to get rid of the car then try and sell it for as much as you can but keep in mind that all funds from the sale of the vehicle must be paid towards the loan amount.

I would probably suggest speaking with BH. Ask about the possibility of a modification. This would mean extending your agreement with lower monthly payments and keeping the car.

daveyjp

Any loan agreement should contain all the terms and conditions - not just a loan figure, APR and amount payable - check all your paperwork in relation to the car loan. One thing it will also cover is what happens if you default - i.e. stop making payments.

I have returned a car on HP - called the finance company they sent a form for me to fill in which I sent back. I then had a day to get the car to the local auction house.

I had nothing more to pay.