Car on HP

moogal

Sorry it's a bit of a long post, but I thought I'd try and provide as much info as possible. If anyone can help I'd be really grateful.

I bought a Ford Focus about 18 months ago on finance, which is run by ALD Automotive. I'm paying £217 a month, but would really like to give the car back as I've recently moved to London and don't really need it any more - paying that much a month for what now gets used every few weeks for an Asda run doesn't really strike me as economical and I could really use the extra money!

I've had a quick search through the forums for advice on this, but the big problem is that I don't really understand all the documentation that I have.

The figures I have available are:
Amount of Credit: £10945.00
Total Amount Repayable: £14957.20
Duration of agreement: 48 months
Total charge for credit: £4012.21

It lists some "Early settlement examples" at 1/4 (£9609), 1/2 (£8095) and 3/4 (£6379) terms, but I'm not sure whether they mean if I want to give the car back early or pay a lump sum to keep the car. In the paragraph about my termination rights it says that if I notify them that I wish to end the agreement early "they will then be entitled to the return of the goods and to half the total amount payable, that is £7478.60. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods you will not have to pay any more."

What I don't really understand is whether those amounts are on top of giving back the car, or whether the value of the car is taken into account, and whether I need to keep the car for a bit longer before terminating, or whether I can do that now.

If anyone has any useful advice I'd be really grateful.
Thanks,
Alan

asandwhen

48 month term so 4 years - this means you can just hand the car back once you have made 24 payments with no extra cost - as you have only paid 18months you will have to either wait 6 months or pay 6 months upfront now.

CLAPTON

its saying you have two different types of option

firstly you can settle the loan and keep the car.... thats the 1/4, 1/2 3/4 figures....probably unattractive to you unless the resale value of the car is worth more than the settlement figure (very unlikely).

then the second is the standard HP term that allows you to hand back the car after you have paid half the finance back.

standupguy

Firstly you can ignore the 1/4,1/2 figures etc as these are only examples of settlement figures at that particular moment in the agreement.

What you need to look at is "voluntary termination" where you can return the car subject to you having paid at least £7478.60 on your agreement.

The value of the car is of no consequence in this as it belongs to the HP company.

So, Add up your initial deposit and all of the payments you have made.

If this is over £7478.60 then you have already paid the required amount and you can return the car providing you are up to date with your payments -otherwise you will also have to pay any arrears in payments.

Inform the company that you wish to voluntary terminate your agreement.

If you have not paid £7478.60 then your liability will be the shortfall.
So for example if you paid a deposit of £1000 and you have made say 20 payments of £300 per month (20 x £300 = £6000) then you have paid £7000 in total and your remaining liability will be £478.60

This is all subject to fair wear and tear on the car for its age and mileage and no undue damage

Hope this helps and remember the value of the car does not come into this - that belongs to the HP company.

spacey2930

i think i'm on the right part but it's a bit of info i'm after. i am currently trying to reclaim money from Black Horse Financial Services for a mis-sold PPI but they are refusing to deal with the OFT as they were not under its watchful eye at the time of the account. could anyone please tell me who i could contact instead to get this problem resolved?
i would be very grateful for any help

moogal

Thanks for your help - I was getting confused between what I'd have to pay them if I wanted to keep the car and what I'd have to pay if I wanted to give it back.

So basically it looks like I might as well keep it til November as I'll end up paying the rest of the amount up until then anyway, so I may as well have use of it!

Thanks again.