severing HP car finance agreement; best options

ericjam

as above, i wish to severe from an unaffordable and desirable car finance agreement.

HP deets:

amount o credit: 8920

balance payable: 11646

settlement fig: 8224

car calue approx: 6500

deposit: £250

Finance term: 60 months

APR: 11.6 fixed

monthyl cost: 193.94

What i want (Asterisk- attempted and cannot refinance):

i wish to withdraw fully with minimal financial damage incurred.

Should this mean no car and a financial hit to repay- so be it.  But ideally, i could Part exchange (PE) with a willing dealership or sell with consent of all parties and negotiate to refinance for a cheaper car.

Northridge Finance offer PE VT or VS:  Read VS worse than VT.  (read contrary to general consensus- VT DOESN'T require 50% balance clearance?). PE am told is worse and by some prefered tho im getting mixed signals- With few convo's had, Dealships are reluctant- surely negative equity is MY problem? moreover Northridge (NF) wont consider income-reducing PE.

Car auctioning in motion via Dealer Auction- little interest, offering 5.5k on 7k value; but best option rn seems; with effort i can shoehorn the dealership purchase leaving negative equity to clear with Northridge via appropriate payment plan.

im a dummy- first car purchase and devoid of context.

NB: rn paying only £20 pm towards balance until final solution established.  on advice from StepChange NF can only reposses if NO payments made after 3 months. 

Can someone signpost?

Much appreciated.

NB 2.0: posted upon 1st draft apologies if unclear.

facade

Voluntary Termination- you must have paid back half the finance to VT. You can VT at any time before this but have to pay them a sum of money that brings your payments up to half the finance. You will be charged for any damage beyond fair wear & tear. (The VT amount will be in your agreement)

Voluntary Surrender, they take the car back, and auction it. You pay whatever the shortfall is between the auction price and your settlement figure.  (they can't charge you for damage or mileage as these will be reflected in the auction price)

You can get a value from WBAC- who will auction it anyway, so you can be reasonably confident that it will fetch more at auction.

You can just sell to WBAC, and they pay direct to your financier, but then you must pay the shortfall between what WBAC gave and your settlement figure.

You can sell privately, but you must settle all the finance before your buyer can have the car, selling a car still on finance will put people off, and any buyer will want it for rock bottom price to offset the risk.

All you can do is work out the numbers and pick the least costly for you.

A further option is to keep it until you reach the VT point and then hand it back. You will have the use of the car until that point, and are not just throwing money away clearing your negative equity to give the car back.

cw8825

Is there anyway you can afford the difference between the car value and settlement figure?

Once you get an accurate value on the car you can go from there. 

Even if you found a willing dealer to refinance. You’re adding that to your next monthly payments and are pretty much in the same position

sell the car for what you can then pay the 193 a month to clear what is left over 

TheSpectator

With a payment arrangement on your credit file (or a default?) then any future finance is likely to come at an extra cost.