Letter to hand back car

wadia860 · 1 April 2009 at 6:16PM

Hi, could anyone please tell me what they have written in a letter when they have/wanted to hand back a car halfway through their finance plan? My details are below, could someone please check this sounds right?:o

I took finance with Carlyle Finance in 2007, the total price of £13464.04

The finance period is 49 months long.

My finance commenced 13th April 2007, my first payment went out 27th May 2007. I *believe* I am now coming up to the halfway period in my finance. I received a statement today saying my outstanding balance is £6511.73. In the smallprint on my contract, it says I can hand the car back if half the payment has been reached (this states £6732.02).

just for your info, my payments are always on or around the 26th. Also, I have NEVER missed a payment. The car is still in good condition as when I bought it and I have done 4-5k a year.

TIA

[Deleted User] · 1 April 2009 at 11:19PM

Hi Wadia,

You have paid half the Total finance so you can Voluntary Terminate this agreement, i would call them tomorow and request the paperwork to get it collected asap as alot of people are doing this at the moment for obvious reasons.

You will probably be liable for any unfair wear and tear so make sure the car is tip top and you havent exceeded any milage limits, you will be billed for this in most cases.

This will reflect on your credit rating that you have Voluntary handed the car back, in most cases this wont adversely affect your chances of getting credit in the future however car finance will probably be harder to obtain, and personal credit might see you handing the car back as struggling with payments.

What i would say if you havent done so already is find out the Settlement amount and see if the Dealership where you bought the car from is interested in buying it from you. i.e if Settlement = £5000 and they offer you £5500, you will get some money back

Good Luck, hope this helps

michael1983l · 2 April 2009 at 2:04AM

I looked into this once and the CAB told me this would adversly affect my credit rating.

wadia860 · 2 April 2009 at 12:33PM

Thank you.:beer:

nic283 · 2 April 2009 at 12:52PM

michael1983l wrote: »

I looked into this once and the CAB told me this would adversly affect my credit rating.

Weird, as I've heard it doesn't affect your credit rating.

wadia860 · 2 April 2009 at 4:59PM

Right, the wheels are in motion. I emailed them last night telling I want to give the car back. I sent a letter via recorded delivery to their head office at 09:00am this morning and they emailed me back at 13:30 telling me to put it into writing!

Does anyone who has done this know what I do with the logbook? Obviously they get it, do I need to keep part of it?

TIA

[Deleted User] · 2 April 2009 at 7:12PM

Nic, it will be marked on your credit file that you have voluntary terminated - how potential creditors view this is another matter.

You give the log back back to the as it is when they collect it and they will fill it in for you. If you have a private plate, you need to put it on retention and have a new v5 before they will collect it.

I deal with VTs every day though different companies have different procedures so its probably better to call them.

Good Luck

wadia860 · 14 April 2009 at 11:51AM

Just an update for anyone interested in Voluntarily Terminating (VT) their car HP agreement. This was NOT a car loan, but HP/finance. You cannot do this with a car loan.

I'm just over halfway through my 4 year agreement.

1st April - I emailed the finance Co. informing them I would like to return the car to them due to being halfway through the agreement (and having paid half the amount) and under the termination of my rights as stated on my finance agreement. I also put this in writing and sent it to their head office via recorded delivery.
2nd April - They acknowledged my email and asked me to put this into writing and send this to their head office (!) (see previous day!)
11th April - Finance Co. send me a letter saying I owe £00.00 on arrears, £00.00 for half claim, damages £To Be Assessed. The Finance Co. will pay for an RAC inspection (£70) prior to them receiving the car from me. The letter states that the vehicle should be in reasonable condition for them to accept it.
14th April - Phoned RAC for an appt. for an inspection. Friday 17th was the earliest so I have taken that. I will wait and see now!:undecided

The car passed it's MOT on March 20th, no problems. Whoever buys it will get a nice car and at a bargain price. If I had the £££, I would try to find out what auction centre it was being sent to and buy it from there! I've done 13k in it in 2 yrs 1 month.

I will update after the inspection on Friday. Anyone had any experience with RAC inspections? Cheers.

705220 · 21 April 2009 at 10:28PM

hiya,
new on here, but have read with interest what your saying, im with welcome finance, bought a car from one of thier dealers for £7900, at what i was told was 17.9%apr, which has meant a total repayment of over £12000 over 36 mths, i was informed of the half/third rule recently, when i tried to p/x the car and was offered £3000, even thogh ive paid for 2 years, the settlement figure is £4800, so as you are doing can i hand it back, they say i have liability and its not a good idea, but paying £335 a month for another year....seems a bad idea tooo!!!!.....any advice gratefully received.....cheers...

wadia860 · 30 April 2009 at 4:03PM

705220 wrote: »

hiya,
new on here, but have read with interest what your saying, im with welcome finance, bought a car from one of thier dealers for £7900, at what i was told was 17.9%apr, which has meant a total repayment of over £12000 over 36 mths, i was informed of the half/third rule recently, when i tried to p/x the car and was offered £3000, even thogh ive paid for 2 years, the settlement figure is £4800, so as you are doing can i hand it back, they say i have liability and its not a good idea, but paying £335 a month for another year....seems a bad idea tooo!!!!.....any advice gratefully received.....cheers...

Sorry about the delay, just came on here to update. It seems to me that you're 6 months over the 1/2 way rule, but you need to have paid half the total amount (including interest etc). Do you have a balloon payment at the end of the term? Also, could you explain the liability situation a little further please?

wadia860 · 30 April 2009 at 4:54PM

[FONT=&quot]Just an update for anyone interested in Voluntarily Terminating (VT) their car HP agreement. This was NOT a car loan, but HP/finance. You cannot do this with a car loan. [/FONT]

[FONT=&quot]1st April [/FONT][FONT=&quot]- I emailed the finance Co. informing them I would like to return the car to them due to being halfway through the agreement (and having paid half the amount) and under the termination of my rights as stated on my finance agreement. I also put this in writing and sent it to their head office via recorded delivery.[/FONT]
[FONT=&quot]2nd April[/FONT][FONT=&quot] - They acknowledged my email and asked me to put this into writing and send this to their head office (!) (see previous day!)[/FONT]
[FONT=&quot]11th April[/FONT][FONT=&quot] - Finance Co. send me a letter saying I owe £00.00 on arrears, £00.00 for half claim, damages £To Be Assessed. The Finance Co. will pay for an RAC inspection (£70) prior to them receiving the car from me. The letter states that the vehicle should be in reasonable condition for them to accept it.[/FONT]
[FONT=&quot]14th April[/FONT][FONT=&quot] - Phoned RAC for an appt. for an inspection. Friday 17th was the earliest so I have taken that.[/FONT]
[FONT=&quot]17th April[/FONT][FONT=&quot]- A nice fella from RAC came to inspect the car. I think I'll post a little more detail about this later on. He picked up on some damage that was already on the car when I bought it. [/FONT]
[FONT=&quot]27th April[/FONT][FONT=&quot] - Finance Co. write to me informing me that they require £336.51 to 'fix' the damage to the car and this needs paying before they will arrange to remove the car. I feel I could argue my case, however, I am (grudgingly) willing to pay this just to get rid of the car. [/FONT]
[FONT=&quot]27th April[/FONT][FONT=&quot] - I phone the finance Co. to see if I can make this payment in 2 parts, 4 weeks apart. They tell me they'll phone me back :rolleyes: . Obviously they don't . I didn't want to phone as I like to keep a paper trail, however, I wanted to cash in my tax disc (V14 from Post Office or the DVLA site ) before I lose another month. [/FONT]
[FONT=&quot]30th April[/FONT][FONT=&quot] - Contractor in Leeds writes to me asking if I can contact them to make arrangements for collection of the car. Hurrah! I phone them straight away and make arrangements for them to collect w/c Tues 5th May (4th is bank hol!). Hoping it is gone Weds/Thurs next week.[/FONT]

[FONT=&quot]The end is in sight. [/FONT]

[FONT=&quot]RAC Inspections[/FONT][FONT=&quot][/FONT]

[FONT=&quot]When I had my inspection, it was 99% to do with the appearance of the car, not really the mechanical condition. The RAC fella did have a look under the bonnet though, although not a very good look. I know it flew through the MOT the previous month but I was a little concerned in case an inspection turned up any nasty surprises. My inspection found 2 scratches to the car plus 2 of the wheels had slight kerb damage and one rear wheel had corrosion. ALL of this damage was on the car when I bought it so I do feel I could argue with them about this, although I’m going to take it on the chin. I looked into getting the wheels re-furbed myself and I found prices ranged from £45-£75 per wheel. To get a mobile paint repairer would cost £80 -£140.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Each finance co. have their own criteria when you VT a car. The RAC man has a folder with information for each finance Co. as to what they require the RAC inspection to look for on examining the car. I read most of the document over his shoulder and one interesting thing I remember was, the finance Co. told me that I need to have the V5, MOT, service history/book and keys. However, reading the notes, it did say that if the service history wasn’t present, they will not charge the person (me) for this. My service book was missing when I bought the car so I thought they might be a little stubborn about this. [/FONT]

Letter to hand back car

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free