Car Finance?? can i give my car back?

robbo121_2

i bought a vehicle on HP a couple of years ago and am now looking at upgrading. i have been to a couple of dealers who have told me the car is now worth upto 2 grand less than i owe!! i was also told that i can give the vehicle back to the finance company if i have paid over 50% (which i have) and effectively wipe the slate clean!! does anyone know if this is true and surely it must affect my credit rating if i brake the contract??

any ideas??

rog2

robbo121 wrote: »

i bought a vehicle on HP a couple of years ago and am now looking at upgrading. i have been to a couple of dealers who have told me the car is now worth upto 2 grand less than i owe!! i was also told that i can give the vehicle back to the finance company if i have paid over 50% (which i have) and effectively wipe the slate clean!! does anyone know if this is true and surely it must affect my credit rating if i brake the contract??

any ideas??

Section 99 of the Consumer Credit Act, 1974, allows you to terminate your agreement at any time before the final payment is due.
If you decide to terminate your agreement voluntarily and hand the car back to the creditor, then you should only have to pay up to 50% of the total amount payable under the agreement, less what you have already paid, including any deposit:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

Read the above link as it is not straightforward and, in my experience, car finance is a minefield.

Also, the 'creditor' will probably be the finance company, rather than the 'Dealer' that you purchased the car from.