Cancelling finance

rsooty

Last year I bought a car on hire purchase for my fiancee, with full intentions of having the car for 5+ years.
Circumstances have now changed and she is due to have our baby in a months time and we need a bigger car (this 1 has a boot too small for all the baby gear).
The problem I have is that the car still has finance outstanding and we are getting ridiculous offers as part ex, which will leave us around £700 in negative equity with the car if I was to take the best trade in we have been offered.
Is it true that with hire purchase agreements I can just call them up and tell them to collect the car without it affecting my credit score?
If so this may be our best way out of the problem as the charges for ending early are lower than the £700 negative equity we would have.

Any advice from someone with knowledge/experience on this matter would be appreciated.
rsooty

MX5huggy

What car is it? is it really too small. We have managed very successfully with a Ford Puma for the 4 months of my little mans life. Buggy selection and car seat selection was very carefully done.

rsooty

Its a Peugeot 107. Only has 4 seats and there will be 5 of us when the baby arrives so definately too small.

Dick_Van_Dyke

You can almost certainly not send the car back a year into the agreement unless it was a large deposit and on a 107 I am guessing not

In all honesty a year down the line £700 negative equity on a brand new car isnt too bad.

Trade it in and roll in the negative equity to the new deal or sell it privately

Either way you will take a hit.

LandyAndy

You can hand a car back when you have repaid more than half of the amount owed under the agreement (including any final balloon). I suspect that you are nowhere near this so you will have to find the shortfall pay off the finance. As suggested above you may roll this into a new agreement.

After that try and keep it in your trousers a bit more or you'll be back asking advice on minibuses.;):D

smitchy73

yep as landyandy says you have to have paid half of the financed amount to do a Voluntary Termination.
IMO have a look at the Volkswagen, and speak to the finance guy about their Solutions package, i just signed up and have more than you on negative equity but after the three year plan i'll be sorted again.
Also have a look at the Quinny prams, they fold up really small as I'm sure there other on the market, we invested in them a few years ago for our two and they went everywhere, I used to have a toyota aygo(sister to your 107).

rsooty

OK thanks for the info. I wasn't 100% on the finer details of the hire purchase. Looks like we will just have to accept the negative equity as having no look trying to sell privately (even though it is the cheapest of its type on ebay).
Shame to get rid of such a nice little car aswell.
rsooty

angel_1961

can anyone help please . i have one year left on finance for my car, i have paid more than half off of the finance i want to terminate my contract and hand the car back to the finance company, i put this to my finance company and they are not having any of it. plase can anyone advise