Car Finance - 50% mark

happy2017

Hi,

I've got a car on HP with Go Car Credit which I'm no longer able to afford.

Here are some figures.

£12,600 settlement amount

£5,300 Value - webuyanycar
£6,000 to pay until 50% paid off

I'm considering handing the car back, but my concern is if i will receive a default on my credit file or will there be a specific team i could speak to to arrange a payment plan for the next few years to pay off the £6,000.

Any advice would be nice, thanks.

stu12345_2

hi again, I have a link for you, about halfway down in it explains it on a hp agreement.
it says speak to company first.but if you want out and in negative equity and give up the car and still owe . money it can be the worst choice

https://carplus.co.uk/magazine/how-to-get-out-of-car-finance-agreement/

happy2017

stu12345_2 said:

hi again, I have a link for you, about halfway down in it explains it on a hp agreement.
it says speak to company first.but if you want out and in negative equity and give up the car and still owe . money it can be the worst choice

https://carplus.co.uk/magazine/how-to-get-out-of-car-finance-agreement/

thank you - ive just spoken with a colleague and she was in the same position.  She had about £7,000 remaining to half way mark and gave car back, made an arrangement with the car finance to pay £20 per month until the blanace is cleared, her credit file just shows as arrangement in place.......i would hope for this to happen to me.

BoGoF

happy2017 said:

stu12345_2 said:

hi again, I have a link for you, about halfway down in it explains it on a hp agreement.
it says speak to company first.but if you want out and in negative equity and give up the car and still owe . money it can be the worst choice

https://carplus.co.uk/magazine/how-to-get-out-of-car-finance-agreement/

thank you - ive just spoken with a colleague and she was in the same position.  She had about £7,000 remaining to half way mark and gave car back, made an arrangement with the car finance to pay £20 per month until the blanace is cleared, her credit file just shows as arrangement in place.......i would hope for this to happen to me.

An arrangement to pay is not a good thing on your credit file.

happy2017

BoGoF said:

happy2017 said:

stu12345_2 said:

hi again, I have a link for you, about halfway down in it explains it on a hp agreement.
it says speak to company first.but if you want out and in negative equity and give up the car and still owe . money it can be the worst choice

https://carplus.co.uk/magazine/how-to-get-out-of-car-finance-agreement/

thank you - ive just spoken with a colleague and she was in the same position.  She had about £7,000 remaining to half way mark and gave car back, made an arrangement with the car finance to pay £20 per month until the blanace is cleared, her credit file just shows as arrangement in place.......i would hope for this to happen to me.

An arrangement to pay is not a good thing on your credit file.

I understand but would prefer this to the company accepting the car back then adding a default to my credit file for 6 years.

I would like to at some point clear the balance if circumstances change next year so its marked on filed as settled

Car_54

AIUI the 50% requirement only applies to PCP contracts. You’ve said yours is on HP.

Veteransaver

Car_54 said:

AIUI the 50% requirement only applies to PCP contracts. You’ve said yours is on HP.

PCP is same as hp, but with a PCP the 50% mark is often reached just before the monthly payments are ending anyway. Ie you're less likely to use the 50% rule as you can just hand the car back anyway.

happy2017

im going to speak to the finance company on thursday and ask "what if" i hand it back can an arrangement to pay be agreed

Ganga

happy2017 said:

stu12345_2 said:

hi again, I have a link for you, about halfway down in it explains it on a hp agreement.
it says speak to company first.but if you want out and in negative equity and give up the car and still owe . money it can be the worst choice

https://carplus.co.uk/magazine/how-to-get-out-of-car-finance-agreement/

thank you - ive just spoken with a colleague and she was in the same position.  She had about £7,000 remaining to half way mark and gave car back, made an arrangement with the car finance to pay £20 per month until the blanace is cleared, her credit file just shows as arrangement in place.......i would hope for this to happen to me.

Do you mean pay £7000 at £20 a month ,it will take you 30 years to repay it and that is not including interest.

Nearlyold

Car_54 said:

AIUI the 50% requirement only applies to PCP contracts. You’ve said yours is on HP.

Most PCP's are actually  Hire Purchase agreements anyway, some are Conditional Sale and some are Fixed Sum/Term loans. (Aka Personal Loans.) There is no regulatory definition of a PCP,  they're all modified versions of other regulatory defined loans.

stu12345_2

PCP is harder to reach the 50% than hp, that link explains it.
but in all honesty I would keep paying till I got to 50% then return it.
you don't want to be car less and paying for something you don't have.