Car Hire Purchase

Lost_Prophet

Morning All,

I have a car loan - 15 months into the 48 month agreement. When I took it out I didn't realise it was a HP but anyway, that doesn't matter. Payments are very manageable but I am trying to cut my out-goings to maximise savings.

Say that I want to sell my car and buy another. Any ideas how I can do this? I am aware that this is illegal to begin with as the car has negative equity against it but thought that there may be a way

Ta,
L

inmypocketnottheirs

An alternative option is to wait until you have paid half the agreement, when you can return the vehicle back to the finance company without any penalty. This is called a Voluntary Termination, and will be included within the terms of your agreement.

I have done this, and it does not affect your credit file in any way.

iolanthe07

Payments are very manageable

As the payments are very manageable it might be best to stick with it. You nearly always lose out if you terminate these deals early.

Typhoon2000

If your trading in the car at a garage, they will normally sort it all out by getting a settlement figure from the finance company and paying off the Finance before you pick up your new car.