Author Topic: Worried about car payments  (Read 1534 times)

Luke77

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  • Posts: 2
Worried about car payments
« on: Sep 17, 2008, 02:21:57 PM »
If your worried about your car being reposed, check your original agreement / contract to see whether the vehicle is on Hire Purchase.

Most second hand vehicles are now sold via personal loans rather than HP. Car dealers look for the highest commission based on the rates and the type of finance you are approved for, banks tend to pay well.

I had a reasonable credit rating and was sold a £10.5k vehicle with £500 deposit. The dealer used a 3rd party but the agreement is with Barcays Partner finance. And is a personal loan. This means that if you default etc, the car is not reposed.

Check your documents and call the lender if needs be, be clear to ask "is this a HP or Lease agreement?" If the answer is "no", confirm its a personal loan. If so, then your car is safe.

The value of the car is then capital, you could sell it, down grade and use any cash to assist in catching up on arrears etc.

If its HP, Lease, Balloon payments etc then your car is still at risk!!