Will this negatively affect my credit?

komaru

Hi Guys,

Let me outline my issue.

I bought a new toyota aygo in 06 and I am aware I can terminate the agreement 2.5 yrs in and hand the car back.

although I am happy with the car i bought it for a new job i was taking and needed to travel. anyway I played my employer and they wanted me back. So i no longer needed the car after one month (although with the raise i still have more take home even after the car, insurance and fuel payments than if i'd stayed)

I have been justifyin over 200 per month for 3 trips and im finding it hard to do this any more with the current climate

Will handing the car back (terminating finance) be a negative thing for my credit history?

Thank you for your help.

Jamie

standupguy

It is not as simple as handing it back half way through the agreement.

Firstly this can be only done if it is HP agreement.

Once you have paid half the HP price - this actual figure is stated on your agreement - then you can return the car under your termination rights.

So, add up the deposit paid and all of the payments made and if the total is more than the half the HP price figure then you can return the car with no further costs subject to it being in a reasonable condition.

Will it effect your credit record?
Officially no, as all you are doing is exercising your rights under the agreement.
Practically, you may find you have an issue if you want future HP on a vehicle and lenders could well ask for a substantial deposit to do a deal so that the same does not happen again - once bitten.......