Cancelling car loan

rt10

Hi

I am trying to reduce my outgoings and have decided that I no longer need my car - a picasso citreon thingy. The kids and I can either walk or catch a bus/train!

I have about 24 months left to run on it (financed through GE Capital). Someone at work has told me that I can just hand it back as I am over halfway through the contract - is this true - have had a look through my loan agreement and can't see anything there. I think the car is worth more than the loan - however I can't sell it as it has HP outstanding on it. The car has a dent in the side (there was a post where I wanted to park - the post won) and it is overdue a service so I guess this would reduce the value. I do not want to get a negative rating on my credit file - would this happen if I handed it back?

Just would like any input so I can sound at least a little knowledgable when I call them.

Thanks

saver_sam

My OH will know the answer but not home yet. i will post later with answer if no-one beats me to it!

gkf

Is it definitely hire purchase or a personal loan?

rt10

Not really sure - I know we will be paying it off in full and it does not belong to us until we do.

gkf

Hire purchase sometimes has the option to hand the vehicle back as the finance company owns the car until the whole amount is paid, but personal loan you are responsible for the loan as you own the car from day one.

rt10

Would it affect your credit rating if you handed it back?

ArchieB_2

Got a Credit Card with a half decent limit? Clear the HP with the CC and sell the car privately (so long as you sell the car for more than the o/s HP then you will be OK).

Don't get greedy on selling the car in terms of the asking price and you should sell it by the time the CC bill is payable.

hells_2

I had a car on HP and read the small print on the contract. As long as you have paid 'x' amount you can hand the car back (in reasonable condition, although the car I had was half-way knackered and they still took it...lol) without any further implication. Some numpty at the finance company, a bit of a kid tried to tell me over the phone that she would "put a black mark against my credit rating" (yeah yeah...whatever love...) and so I wrote a letter of complaint to the manager. He wrote back, apologised for their error of judgement and made arrangements to take the car. I believe it went to an auction in Leeds. I'm surprised they even got it there...lol! I already had a new car by this time which I had bought with a cheaper personal loan and so everyone was happy!

I have a PCP contract on the car I own now and in March 07 I can either hand it back, (I could do now even having paid enough on the deal), trade it in for a guaranteed minimum with the dealer, or I can pay the finance off in cash and sell the car privately/trade it in elsewhere. It suits me as I will probably go back and get myself a new car anyhow!

zandralapoi

Hope people are aware of this.

I have handed a car back in the past, I had had the agreement for over 2 and a half years so was well within my rights under the Consumer Credit Act.

This was 5 years ago. Last week I got my Credit Report and my Credit Agreement Data is assessed as 'VERY POOR' as I handed the car back and is down as a 'Voluntary Repossession' on my report!

Can they do this to people?

Any help greatly appreciated.

Regards,

Zandra LaPoI