Handing my bike back

Minibiker · 25 Mar 2018 at 12:08

Hi all

Lately I've been struggling to keep my payments up to date and now it's got a bit out of control...i owe around £500 on payments, I only have £3400 left to pay on finance and got quoted £4000 for my bike against a new one, only problem being the bloke at the dealership said chances are I'd get rejected finance on a new bike for missing payments but it would work out better for me and blackhorse in the long run because it's £140 cheaper per month so they are guaranteed to get the monthly payments

Currently paying £230 a month
New bike £90 a month

Will it go against me if I hand the bike back or affect me getting finance at a later date?

Captain · 25 Mar 2018 at 18:18

I don't think handing the bike back will affect you getting credit again but it may mean you'll pay a higher interest on your credit allowance.

Why not sell the bike to clear the finance and then save to buy one? Unless you need a bike for commuting?

Hyburnate · 25 Mar 2018 at 18:28

Clearing the finance early should aid your credit file.

Can you go without for a period?

BUDFORCE · 25 Mar 2018 at 18:55

Missed payments will affect your credit file, handing it back wont though, it'll just settled the current agreement.

Might be worth taking a look at Experian or Equifax to see how bad it is, a few missed payments here wont do you too much harm, depend how many months in arrears you got.

If you cant afford to make the current payments you are doing the right thing by trading it in, taking a cheaper bike on cheaper payments you can afford, depends if blackhorse will give you a new agreement.

If not I would advise against non-prime finance, it costs you an absolute fortune, unless you are absultely screwed without your bike, better off without it and the bike, I am afraid

That is how you start to get in to debt cycles, cant afford so borrow more money or high interest rates, which ends up costing you more in the long run, and you repeat etc etc until boom, they are taking your house, finance companies are horrible capitalist pigs, that screw you, and the entire countries ecomony, but at the end of the day YOU are responsible for what you borrow - these guys only feed off peoples greed.

Sorry, might have gone off one a bit, just trying to look out for you, even if it doesnt seem like it lol.

Minibiker · 25 Mar 2018 at 19:35

@Clov!s @Hyburnate @BUDFORCE

Thanks for the pointers guys, To be honest i ride the bike to work probably 2 times a week and get picked up other days by one of three people at work, so it seems pointless me having the bike really, paying that much for something i rarely use... Ive got an Exprian account and it says my current Report score is 623 out of 999... I was considering selling it private and getting the cash to clear the finance and by a cheap run around/weekend blast once ive saved up...

Im off work for a month from now as the missus has just gave birth so yet another reason to get a cheaper bike

TallPaul_S · 25 Mar 2018 at 19:47

If you want to check your actual credit report to see if there's any defaults showing you can check all three for free - experian, equifax and callcredit. Depending on the lender they'll check one of those three.

You need a free noddle.co.uk account for callcredit, moneysaving expert credit club for experian - https://www.moneysavingexpert.com/creditclub and for Equifax it's clearscore - https://www.clearscore.com/

Just getting a credit score doesn't really tell you much, in the 600's on experian you're in the 'very poor' rating so I would think you're got a couple of defaults payments on your account at least.

£230 a month is a lot to spend just on paying off a bike, having learnt the hard way in the past I now save up for purchases like that, or at least know that I have the free cash after bills and/or assets that I can sell to clear the debt if worse comes to the worse.

Captain · 25 Mar 2018 at 20:15

Isn't Experian £15 a month for an in-depth look at your score and history? Do you get that access going through MSE?

TallPaul_S · 25 Mar 2018 at 20:27

Clov!s said:
Isn't Experian £15 a month for an in-depth look at your score and history? Do you get that access going through MSE?

Yep, full monthly credit report and credit score, they don't show credit score history but all the previous reports (since you signed up) are there.

Captain · 25 Mar 2018 at 23:16

I’ve just signed up to it, my credit rating used to be good but now it’s excellent.

What bike is it Minibiker?

Minibiker · 26 Mar 2018 at 08:08

Clov!s said:
I’ve just signed up to it, my credit rating used to be good but now it’s excellent.

What bike is it Minibiker?

Wish mine was Excellent

its a 2012 CBR600RR

BUDFORCE · 26 Mar 2018 at 09:32

I've worked in finance for about 12 years, mortgage and vehicle over the years.

Your "credit score" is pretty much meaningless. Lenders systems have their own credit scoring systems which score on all sorts and often your credit search has little impact until you start getting adverse, then it'll come down to each lenders criteria on this.

Being on the voters roll is one thing that will have a big impact (positive if you are on).

Others things they will look at, levels of debt compared to income, and things like credit card use, high limit/low balance for example is s good sign, obviously the opposite is not.

Captain · 26 Mar 2018 at 09:33

Minibiker said:
Wish mine was Excellent its a 2012 CBR600RR

Must be worth more than 4K surely if it’s 2012 unless it’s got 25k+ miles?

Minibiker · 26 Mar 2018 at 10:27

Clov!s said:
Must be worth more than 4K surely if it’s 2012 unless it’s got 25k+ miles?

Has 15,500 miles... registered to me in 2014, fair enough it doesnt have dealerships services but all work carried out by a friend whos had bikes years

AHarvey · 28 Mar 2018 at 19:46

You'd struggle to sell a bike on finance as well, not many people would be willing to take the risk.

BAcon · 28 Mar 2018 at 23:26

I've just bought a bike from a guy who had it fianced. We discussed it in depth before I came to pick it up, he sent me a photo of his settlement letter and how much was owed, I bank transfered the cost to settle his fiance directly to the finance company in front of him and took the bike home.

Since me picking it up and recieving the v5, he has received and sent me the final letter showing completion of his finance agreement.

Edit: for clarity, it was a 2016 MT09, 18 months old with 5k miles on the clock, so not a bike worth peanuts.

Just speak with any potential buyers with complete transparency and you won't have any issues at all.
My guy seemed genuine throughout, had paperwork to back up the information he was giving me and all worked out dandy.

Personally I couldn't ever buy a bike on finance unless I had the cash in my bank to pay it off should a bad situation crop up, unfortunately that's not how bikes and cars are sold, as you are now finding out.

My opinion is to not go jumping into a new finance deal on a cheaper bike, you could be back to square one in no time. Sell your bike privately to pay off the finance and save up for something you can afford to actually buy.