Self Managed DMP and HP Agreement Question

Reddington85

So I am cozily in my self managed DMP, making a savings pot and all priority bills up to date.

I currently have a HP agreement (which has just over 2 years to run) for a Hyundai i10 - which I use as a runabout. Stepchange were happy for me to keep and continue with this (when I was with them)

I guess my roundabout question is - when the HP term ends and I get to balloon payment or re-finance - how easy will it be to refinance with defaults on my record or am I best just handing the car back and attemtpting to buy an older run around?

Cheers all

Isthisforreal99

Ask yourself, would you lend to soneone who has defaulted? Short version, it will be more difficult but you may get offers at higher interest rates to reflect the risk but your defaults are on record for 6 years.

Reddington85

https://forums.moneysavingexpert.com/discussion/comment/82106841#Comment_82106841

Suspected as much - guess I needed it in black and white

RAS

You could look at your agreement and see if/when you can return the car without incurring any further liability. Take extra advice here as you have to get the wording right if you contact them about this.

Regardless, if you need a car as opposed to wanting one, you need to start a savings pot now for a replacement.

ManyWays

So this is a PCP car finance? If it is, you are unlikely to be able to return the car without any further liability (this is called Voluntary Termination,and it is what @RAS is referring to) and this would anyway leave you without a car. Is a car essential for you?

How large is the balloon payment? How large are your savings at the moment?

If you have had previous cars on finance, have you looked at making commission refund claims for them? See MSE's free tool to do this

Car finance FREE reclaim tool & guide | Martin Lewis