Returning car to finance company

apinnyon · 3 November 2008 at 5:32PM

We have two cars but really only need one now. Am I right in thinking that as I have paid just over half of the amount due on the agreement, I can hand the car back without ruining my credit rating?

Thanks.

standupguy · 3 November 2008 at 5:38PM

Yes if the agreement is hire purchase and not a loan.

Add up the deposit and monthly payments you have made - if the total is equivalent to the half HP price figure shown on your document then you can voluntary terminate the agreement.

A Vt marker will be put on your credit file which should not be a detriment.

However you may find it difficult to get HP on a car in the future unless you are prepared to put in a large deposit

apinnyon · 3 November 2008 at 5:44PM

Thank you standupguy :T

rockyxs · 4 May 2010 at 12:44PM

i have a car on finance, i am struggling to make the monthly payments of £180, which i have managed to reduce from £350 per month. I have paid just under £10,000 but the intrest is £19,000 ! my monthly payments are not even clearing the £250 intterest they are charging. would i be better off handing the car back, and would i still owe the interest ?

ILW · 4 May 2010 at 1:01PM

Depends on a number of factors, but VT is not usually available if you are in arrears.

Returning car to finance company

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