Advice for Son please

[WendyB]

Hi, help and advice needed please.

My son has a motorcycle on finance, taken out when he was 17, my husband is guarantor. Its with Black Horse Finance. He pays 108 pr month, term is 3 years, 12 (or it may be 13) payments already made, never missed a payment.
He has now moved into a flat with his girlfriend and is trying to cut down his outgoings. (Good luck to them, she's a nice girl, and they haven't asked eithr set of parents for a penny, bless) Can't sell the bike as its on finance. Has had a settlement figure from BH of £2400, which he could only pay by taking out a bank loan, which he doesn't want to do as he'd then be paying 100 per month for another 3 years to pay the loan off. Couldn't guarantee that he'd be able to sell the bike after paying off the finance before the first bank loan payment was due. At a push we can help him out to the tune of about 50 a month, but this is not ideal as a)we are skint and b)so is he.

I've seen it mentioned somewhere that vehicles can be handed back after a certain amount paid/time elapsed? Can someone advise please? And if he did hand the bike back, would this have any effect on his credit rating, or my OH's?

[michael]

Re: Advice for Son please

I've seen it mentioned somewhere that vehicles can be handed back after a certain amount paid/time elapsed? Can someone advise please?

AFAIK you can Voluntary Terminate the agreement after 50% has been paid
It is 50% of the TOTAL amount payable under the agreement and also includes any deposit. You can find the exact figure in the termination clause on your h.p. contract. Add up what you have paid plus any deposit. If you are a little bit short of the amount required put a cheque in with your termination letter. One thing to watch out for - add-on products such as GAP or CPI are usually done on a separate CREDIT agreement i.e. not HP and will still have to be paid for.