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HP Car loan- how do I cancel or pay it off?
Hi, This is my first post so please excuse me If I am a little slow. My OH has a car on finance purchased in March this year, he is now looking for a new job where it is likely he will be provided with a company car, I need a new car howevr I am not keen to take over his car as It is a 4x4 very expensive to run etc! I need a car and will also have to go about getting HP for it.
How much notoce is required to give the finance comapany and I assume that the balanxce present will be more than the value of the car does this sound right?
How much notoce is required to give the finance comapany and I assume that the balanxce present will be more than the value of the car does this sound right?
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Comments
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Hi
Very easy - just call the finance company and ask for a settlement figure.
Make sure you are sitting down when they tell you - it will probably be significantly higher than the amount you paid for the car as you will have only made 4 or 5 payments so far.
As soon as you decide you want to hand the car back, the finance company is usually able to respond pretty quickly. Depending on what kind of finance arrangement you have, it could be your responsibility to sell the car on (and get some of your money back).
Why not go and see the dealer your OH got the 4x4 from - you may not get that great a trade-in price from them for the 4x4 but they may be able to help out with a new car with a decent deal for you (as they have just made a fortune out of you!) Trading the 4x4 in for something else also removes the need for you to try and find a buyer for the unwanted car and simplifies the process for you.
Please tell me this wasn't a brand new 4x4! (Otherwise you will be throwing away an eye-watering amount of money doing this).
If you can, consider keeping the 4x4 and running it for at least 18 months. This will help to greatly reduce how much negative equity you will be left with and if it is new, the running costs / servicing / tyres shouldn't cost you anything for a good while yet.0 -
what sort of finance do you have..is it HP or a personal loan or what.. the rules depend upon what type you have.0
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It is HP fianance, I called a dealer who had a suitable car for myself yesterday who advised that they can settle the finance on the 4 X4 so do you think that would be a good option?
The only trouble is I am really not comfortgable in driving the car and have had two near mis accidents in it, and due to my job I regularly drive!. no its not a brand new car either its three years old.
Thanks for the responses so far.0 -
Fair enough.
Simplest move is to trade it in for whatever you want. Although, to be sure that you are not going to get your leg lifted, get a settlement figure yourself first.
Armed with your settlement figure, the 'windscreen' price of the car you want and a rough idea of the part exchange value of your current car - see here - you will be able to see exactly what kind of 'deal' you are getting and how much it will cost you.
If you are cunning, you will also be able to spot where the dealers' margins are being made and can possibly whittle him down a bit!
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