Handing a car back to the fincnace company

CRL1978

Hi there,

I'm looking for a bit of advice for my partners son, he has a car on a car finance agreement, (we think as it was taken through the garage he bought it from), & has had the car for slightly less than 2 years, but over the last year he has been consistantly late in paying the payments & has missed paying the last 3-4 payments, (that we know of), & has now decided that he wants to hand the car back & come to an agreement with the finance company re any outstanding finance.

The only problem is that the car won't start due to a seized engine, a friend of his has told him the car finance company will not take the car back...anyone know if this is true?

Thanks in advance:D

StuTheDon

CRL1978 wrote: »

Hi there,

I'm looking for a bit of advice for my partners son, he has a car on a car finance agreement, (we think as it was taken through the garage he bought it from), & has had the car for slightly less than 2 years, but over the last year he has been consistantly late in paying the payments & has missed paying the last 3-4 payments, (that we know of), & has now decided that he wants to hand the car back & come to an agreement with the finance company re any outstanding finance.

The only problem is that the car won't start due to a seized engine, a friend of his has told him the car finance company will not take the car back...anyone know if this is true?

Thanks in advance:D

Hi - its not that simple I'm afraid.

You can/should be able to hand the car back after you have paid at least half the payments - so assuming he took a 3 year deal he should be past that. Although it does leave a mark on your credit report - not a black mark but future creditors will see that the full agreement was not stuck to.

But there will be a clause in the contract around the condition of the vehicle. If the engine has seized they will not accept it - is there a warranty or cost to repair? If not he will have a real problem I am afraid.

alo6

The car has to be in a good condition to return. i may be wrong tho.

PNPSUKNET

I gave myn back 50% through and didnt harm my rating just shows as settled.


The car must be in full working order, if not they will refuse it