Surrendering a Car to finance company

- J
- Jonesey
  
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posted
17 years ago

Thu, Jan 25, 2007 6:06 PM

Hi,

Just after a bit of advice or information before I speak to my car loan company (Black Horse)

I took a car loan out in 2005 to buy a car, which I still have, I am moving into a new house and the car has to go, however, with the finance outstanding, I feel limited as to my options. Can anyone give me any help on what my rights might be on saying to black horse - Take the car back, I can't afford it?

I cannot get a loan to pay off the outstanding amount and the car is worth more than whats outstanding as I put down a fair deposit.

I know my best option is to just phone them but wanted some thoughts first!

Thanks

Andy

- M
- Martin
  
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posted
17 years ago

Thu, Jan 25, 2007 6:23 PM

Strongly suggest you do NOT say you can't afford it. Put's a black mark against your name.

Instead, use any excuse (eg "getting company car") and say you want to sell off car and re-pay loan early. Ask them how much they want by way of "penalty" for early redemption - it'll typically be the best part of a month's interest.

- A
- anon
  
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posted
17 years ago

Sat, Jan 27, 2007 4:13 PM

You say "car loan". What exactly is the nature of the agreement. Is it Hire Purchase, conditional sale agreement, credit sale agreement or personal loan?

Presumably you have a Consumer Credit Agreement regulated under the

1974 act. Can I suggest you read it. If it is a personal loan then the car is your property and you are free to sell it and pay off the outstanding debt.

David