Returning Car

r055c

I bought my car from Evans Halshaw back in September 2007 on a 5 year finance deal.

I've recently heard that if i have the car for half the finance agreement, i can return the car (voiding my current finance agreement) and purchase another car with a new finance agreement.


is this true?

motorguy

r055c wrote: »

I bought my car from Evans Halshaw back in September 2007 on a 5 year finance deal.

I've recently heard that if i have the car for half the finance agreement, i can return the car (voiding my current finance agreement) and purchase another car with a new finance agreement.


is this true?

Yes - assuming you didnt finance more than 25K.

Heres how it works :-

Monthly Payments x 60 (ie, the number of months) + your initial deposit = the total finance cost.

Once you've less than 50% of that remaining to pay, you can hand the car back.

So if the payments were £200 a month and you'd put down £2000...

£2000 + (60*200) = £14000.

Once you'd less than £7000 owning you could hand it back. OR made £5000 worth of payments (as your deposit is included)

Inactive

Would this not have any adverse consequences for the OP's credit rating?

motorguy

Inactive wrote: »

Would this not have any adverse consequences for the OP's credit rating?

No

You're just exercising your rights under the credit agreement, so theres no defaulting of payment.

The last time i did it, the finance company wrote out to me and thanked me for my custom and said they looked forward to repeat business with me the next time i was buying a car.

emmell

r055c wrote: »

I bought my car from Evans Halshaw back in September 2007 on a 5 year finance deal.

I've recently heard that if i have the car for half the finance agreement, i can return the car (voiding my current finance agreement) and purchase another car with a new finance agreement.


is this true?

Why don't you just put it in part exchange and take out a new finance agreement on your new car.
ML

Kilty_2

emmell wrote: »

Why don't you just put it in part exchange and take out a new finance agreement on your new car.
ML

Depends on the car but in a lot of cases with 5 year agreements you'd be in negative equity by the time half the payments were made so handing back the car is the cheaper option

harveybobbles

Inactive wrote: »

Would this not have any adverse consequences for the OP's credit rating?

wont affect the credit rating as such, but the same finance company wont want to touch the OP again.

Kilty_2

harveybobbles wrote: »

wont affect the credit rating as such, but the same finance company wont want to touch the OP again.

Not necessarily true - my dad returned a car to Vauxhall/GM finance and bought another straight away financing it through them.

Even, as said, got a letter from them thanking him for his custom and saying they'd love to have him as a customer again, etc etc.

motorguy

harveybobbles wrote: »

wont affect the credit rating as such, but the same finance company wont want to touch the OP again.

You didnt read my post then?

Finance companies are far to big and in need of the business to take a car being returned personally.