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Handing car back to finance company
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# 1
scottydotty
Old 24-06-2008, 8:40 PM
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Join Date: Jun 2008
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Default Handing car back to finance company

Hi all.

I bought a car on a 3 year finance deal 11 months ago. My circumstances have changed and I no longer use it.

The car is worth more than I owe the finance company, and is still in the same mint condition that I bought it.

Do I have any right to terminate my contract and hand the car back?

Any help will be appreciated.

Thanks Scotty
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# 2
standupguy
Old 24-06-2008, 8:55 PM
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Yes you can terminate and hand your car back subject to you paying half the hire purchase price - this figure is shown under "termination rights" in your agreement.

Add up your deposit and all of the payments you have made.

If the total is more than half the hp price you can return the car under voluntary termination and have no more to pay.

If you have not paid the half hp price then you will have to pay the shortfall.

BUT, and its a big but, why would you want to voluntary terminate the agreement and hand the car back if it is worth more than the settlement figure??

All you need do is sell the car, settle the Finance and pocket the difference?
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# 3
scottydotty
Old 24-06-2008, 9:00 PM
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Thanks Standupguy,

Would I be able to sell the car even though it has finance on it?

I just assumed I wouldn't be able to sell as it technically still belongs to the finance company.

If I could sell it then that would ideal.
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# 4
standupguy
Old 24-06-2008, 9:11 PM
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Yes you can sell as long as you settle the Finance company out of the sale proceeds.

If you sold to a private buyer and they wanted to ensure that there was no finance outstanding on the car they could pay the settlement direct to the Finance company and the balance to you - obviously you would need to make sure it was cleared funds in both cases before you release the car.

If you sell to a car dealer it is usual for them to settle the Finance and pay you the balance. - However, beware as until the Finance is settled by the dealer you are still responsible and if the dealer goes bust and does not settle they will come to you for the money.

Sometimes dealers hang on paying the Finance company until the very last minute when the settlement figure expires so you will need keep an eye on things and speak to the HP company to ensure the settlement is paid.
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# 5
scottydotty
Old 24-06-2008, 9:15 PM
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Thanks you have been a great help Standupguy.

I think I will try to sell it privately first and see how I get on.

If not I will then try a car dealer.

Thanks Scott
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# 6
Useless_With_Money
Old 25-06-2008, 1:20 AM
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Car dealer will not give you a decent price,

i work in the trade and if you gave me the details of the vehicle i can get you the current vales if you require?

make:
model:
engine size:
fuel type:
manual/auto:
mileage:
a/c:

that will do for a start as a rough guide.
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# 7
scottydotty
Old 25-06-2008, 9:41 AM
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Hi The car I am selling is:

Renault Megane 1.6 dynamic

3 Door manual petrol

24,000 miles

17 inch alloys

Black metallic paint

Mint Condition

Thanks Scotty
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# 8
CLAPTON
Old 25-06-2008, 10:48 AM
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what sort of finance have you...? is it HP or simply a personal loan
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# 9
Princess078
Old 01-06-2010, 10:58 AM
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Default send my car back to finance

hey guys, im thinking of sending my car back to finance company. it was over 5 years and ive paid 3 years. will this affect my credit rating? read on amazon that it will but doesnt really make sense. any info would be great. thanks, becky
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# 10
immoral_angeluk
Old 01-06-2010, 1:06 PM
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Location: Usually behind my desk, drowning in paperwork..
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If the finance is hire purchase you cannot sell the car without the lender's written permission...
Total Debt Nov '11 - 6801 Current Debt- 4380.81
~Target DFD Dec 2013~
This year is the year!
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