Lease car - Hand car back early

[des8]

Re: Lease car - Hand car back early

1. Good point.. no balloon payment
2. bad point.. you can't VT
3. good point.. it is your vehicle and if you want you can sell it.
4. bad point.. you still owe bank
You can of course use the proceeds of the sale to redeem the loan.
Current purchase price (had a quick Google) would seem to be around £14,000 from trade, so I doubt you would make sufficient to clear outstanding loan.

The loan doesn't appear to be secured against he car. It was granted to enable you buy the car but not actually secured against it.

Please note as already mentioned I am not into vehicle finance, and I base this on (mis)reading your posted documentation, so it is open to correction!

[Amethyst]

Re: Lease car - Hand car back early

There is a balloon payment - £8099. Its restricted use credit fixed sum loan, 48 monthlys plus balloon payment of £8099 month 49. You can sell the car ( you own it) but will still owe the payments on the loan inc the baloon. Car cost overall about £24k - cash price £19k + interest/cost of credit £5k.

No option to VT. You have to pay the end payment £8099 - either by selling the car and paying it, alternative finance etc.


( basically its done that way to reduce your monthly payments for the 48 months )

There will be a settlement figure for early settlement though - think you already asked BPF for that figure and they said £14727.81 - so if you sold the car today for £14k you'd have no car and no loan.... (well you'd have to pay the £727.81 lol)

[des8]

Re: Lease car - Hand car back early

Thanks Ame... I said all along I was out of my depth:tinysmile_cry_t:

[Amethyst]

Re: Lease car - Hand car back early

I know naff all about car finance, I really can't comprehend spending £25k on a car to begin with.... just noticed there was the £8099 on the fixed sum loan agreement after the 48 monthly payments..... previously these kinds of loans have been secured by a bill of sale - doesn't seem to be in this case? - LOADS of threads about the place on Barclays BPF and lease purchase / fixed sum loan agreements.

[des8]

Re: Lease car - Hand car back early

If there is no bill of sale, and no other indication of the car being security for the loan, and the balloon figure only showing on the order form are Hippo in a position to enforce the balloon payment?

[Amethyst]

Re: Lease car - Hand car back early

Hippo have sod all to do with it IMO, it's a loan from BPF to the OP. OP owes BPF for the loan. Doesn't appear to be secured on the car - which is odd. Hippo sold the car to the OP and were intermediaries in getting him the loan but that's it.

There should be further terms etc with the agreement though - which will show the calcs for early settlement etc.

The agreements used to be like this http://i297.photobucket.com/albums/m...stggj/cpg1.jpg with the condition of the loan that you sign a bill of sale.


Possibly some argument for misselling against Hippo if the OP was told he would be able to VT, and seems he was definately told the balloon payment was optional or hand the car back - as that's just not the case. Hippo might buy the car back off the OP for the £8999 at the end but there's no obligation on them to do so.

[des8]

Re: Lease car - Hand car back early

OOps... just re read Payment terms on Barclays loan agreement (all now clear(er)!

[ohwhatalad]

Re: Lease car - Hand car back early

Thanks all for the help. I thought VT was an option on car finance not just lease agreements.
the loan is secured against the car, done a hpi check.

unfortunatly part ex my car is with around 11k. With bpf settlement being 14700 that's negative equity of 3700ish. Not feasible to sell and pay off unfortunatly.

its definitely not a personal loan but secured against the car so does that mean the vt option may be viable at all?

If if it wasn't secured against the car I'd sell the car pay some off the loan and buy a cheaper car with the leftover cash. Oh how simple it would be. Unfortunatly hpi shows finance.

[Tools]

Re: Lease car - Hand car back early

There is another option available to you.

Part ex the vehicle for a lesser value vehicle, many dealers will pay off the finance and then give separate finance on the difference, although it may not put you in a much better position.

[ohwhatalad]

Re: Lease car - Hand car back early

after lots of research it seems i have a FIXED SUM LOAN agreement, which is a personal loan and not allowed to be secured against the vehicle, so the HPI marker should be removed by barclays.
Apparently, they can only flag your car for HPI if you have a HP Agreement. Does that sound right before we call them

[des8]

Re: Lease car - Hand car back early

Sounds about right to me.
You might find the bank have an alternative view.
I saw it suggested that if you quote the Data Protection act, and point out they have used your data without your prior consent by recording YOUR vehicle with HPI,they might be more ready to remove the marker.

[ohwhatalad]

Re: Lease car - Hand car back early

All sorted - HPI removed from register, thanks for all your help your amazing,

Please can admin please remove my attachments from post #1? thankyou

[Amethyst]

Re: Lease car - Hand car back early

So you are now able to sell the vehicle and sort out the loan ?

I've unapproved the attachments in post #1 for you xx

[ohwhatalad]

Re: Lease car - Hand car back early

yep - the car was mine all along, they apparently register HPI as an interest on fixed sum loans as a matter of course, even though they shouldn't!

thankyou for that

[Tools]

Re: Lease car - Hand car back early

Who had placed it on the register? Hippo or Barclays?