Advice wanted on car finance

[Harleybone]

Hi everyone

My partner has car finance through Black Horse, his ex wife has the car and she no longer wants it. We called Black Horse and they said we can return the car (at a cost) and as he has paid off over half he does not need to pay anything else. They will take the car to auction.

However on talking to friends and family who have been in the same situation they have said that the company sell the car and if there is a shortfall (which there will be as over 4k still owed and car worth 2k maximum) the company then comes back to the person and asks for the shortfall. Can they do this?

Any advice is greatly appreciated.

Kind regards

H

[Kati]

Re: Advice wanted on car finance

tagging [MENTION=71570]R0b[/MENTION] xx

[ostell]

Re: Advice wanted on car finance

Start looking up VT (voluntary termination) in the forum. There is a template to write to the company to terminate the agreement and noting is owed if more than 50% has been paid. There should be no cost to you, they come and pick up the car.

What your friends are talking about is voluntary surrender, where the car is handed back and you are still liable for any shortfall.

[R0b]

Re: Advice wanted on car finance

Hi everyone

My partner has car finance through Black Horse, his ex wife has the car and she no longer wants it. We called Black Horse and they said we can return the car (at a cost) and as he has paid off over half he does not need to pay anything else. They will take the car to auction.

However on talking to friends and family who have been in the same situation they have said that the company sell the car and if there is a shortfall (which there will be as over 4k still owed and car worth 2k maximum) the company then comes back to the person and asks for the shortfall. Can they do this?

Any advice is greatly appreciated.

Kind regards

H

Yes and no. Yes if your partner wishes to voluntary surrender, no if he wishes to voluntary terminate the agreement. They have two different meanings and you need to be careful of what you say because if you get it wrong it could have substantial financial implications. Voluntary surrender is what your friend is talking about, voluntary termination limits the liability to 50% of the total amount payable.

As Ostell has said, look at the VT guide here -> http://www.legalbeagles.info/forums/...on-Your-rights