New Car

PSM_7

Hello All,

I'm thinking of buying a new car but already have one on finance. The dealers have said they part ex they would offer will leave my car in negative equity which would be added to the balance of the new car.

I've been advised by someone though that if I'm half way through my payment terms on the car I have I can hand it back to the finance company without any black mark on my credit file, is this correct??

Any help / advice much appreciated.

Cheers.

wobbles08

HI

As far as I am aware yes you can hand back the car after you have made half the payments, read what is says in your hire purchase agreement.

I am planning on doing this next summer once i have made half the payments because last time I part exd the car they only gave me £5800 part ex allowance on a car that still had £7100 finance owing it was a 27 month old Vauxhall Zafira part exed for a brand new Vauxhall Zafira

Let me know how you go on

Wobbles

PSM_7

Cheers wobbles, will let you know how I get on.

fatbelly

Full info and sample letter on this factsheet

Nile

Hello PSM 7

Welcome to the MSE site.:wave:

I'll move your thread to the 'Motoring & Public Transport' board.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Regards

Nile

LandyAndy

I think this only applies to Hire Purchase agreements and not other forms of finance.

harveybobbles

Yes you can indeed hand your car back after a certain time, but a little note gets put on your credit file - not a black mark, just a note. Which will make it slightly harder to get a good deal on the next car.

Or if you try to go back to use the same finance company they will probably turn you down.

Scuttsy

harveybobbles wrote: »

Yes you can indeed hand your car back after a certain time, but a little note gets put on your credit file - not a black mark, just a note. Which will make it slightly harder to get a good deal on the next car.

Or if you try to go back to use the same finance company they will probably turn you down.

This is true, although you will not get a black mark, you do get a slighly brown one as it were. If you are considering re-financing a new car on HP be careful. In these credit crunch times banks are being much more choosy over who they lend to and this could make re-finacing the next car more difficult.