Car Finance 50%
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happy2017
Posts: 91 Forumite
Hi,
Ive got a car on HP which im no longer able to afford.
Can i hand the car back and make arrangements with the car finance company to continue to pay up to the 50% mark?
Thanks.
Ive got a car on HP which im no longer able to afford.
Can i hand the car back and make arrangements with the car finance company to continue to pay up to the 50% mark?
Thanks.
0
Comments
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Once you hand the car back it will be out of your hands.
How far off the 50% mark are you currently?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
13 months remaining to get to the half way mark. Works out at £6k. Could they potentially default me?
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Yes of course they can default you if you stop paying, if its unaffordable to you, perhaps let them repossess it.
Any shortfall debt will be either assigned or sold to a collector, and you can then make affordable payment arrangements.
That process can take a good few months.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
What is the cars value? Try typing the registration into WeBuyAnyCar and see what values you get. Also ring a few local dealers and see what they would offer to buy the car from you and settle the remaining finance.
How does this compare with the remaining finance to date?
If it's same/more than, then simply sell it and settle the finance that way.1 -
DrEskimo said:What is the cars value? Try typing the registration into WeBuyAnyCar and see what values you get. Also ring a few local dealers and see what they would offer to buy the car from you and settle the remaining finance.
How does this compare with the remaining finance to date?
If it's same/more than, then simply sell it and settle the finance that way.£12,600 settlement amount£5,300 Value - webuyanycar
£6,000 to pay until 50% paid off
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this is voluntary termination on a hp agreement, then you must reach the 50% of the total amount owed, you make a lump sum in order to bring it to that amount.
you then arrange for car to be collected, it must be in good order with at least 3 months MOT, from memory,cos I did it twice.
usually it's best if it's a short hp term eg 3 years and you have you paid a big deposit when you got the car.
I assume this was a brand new or nearly new car and is over a longish term and you paid little deposit and it's depreciated heavily with highish Apr.
it's best to buy a small car for lowish price that deprecated slowly.
I was lucky I got mines before COVID and the price shot up when the lack of microchips during COVID.
motorway and carwow offer much better than we buy any car.much much better.
remember doing a VT will affect your credit history.
personally , I would not be paying for something that I returned that I don't own.
I would do my best to carry on owning the car , until I got to the 50% price.pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.0 -
Can I ask who the funder is please? I work in motor vehicle finance and if it is 100% unaffordable and there is no other option then I would suggest speaking to them and at least have a "what if" discussion, we have specialist departments who can offer alternative options.Baby Step 6/7 - £63000 saved for emergency fund DEBT FREE !!!0
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Andyjflet said:Can I ask who the funder is please? I work in motor vehicle finance and if it is 100% unaffordable and there is no other option then I would suggest speaking to them and at least have a "what if" discussion, we have specialist departments who can offer alternative options.0
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have you tried posting in the motoring forum.
I think you are probably on 29 to 40% Apr which is causing the problempay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.1 -
stu12345_2 said:have you tried posting in the motoring forum.
I think you are probably on 29 to 40% Apr which is causing the problem1
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