Ending a fixed sum car loan early?

geeba88

Hi

I'm 18 months through a 60 month car loan with Santender. I've been told under the "half rule" it's possible to hand the car back to the garage, and (providing that car is in good condition) the credit agreement is effectively ended.

Is this correct? I can't specific reference to this on my loan agreement, would it definitely be referenced in this document?

Thanks

mc33033

Sorry, someone has told you rubbish you have no automatic statutory right to end your agreement half way through and simply hand your car back in a fixed sum loan agreement.

geeba88

mc33033 wrote: »

Sorry, someone has told you rubbish you have no automatic statutory right to end your agreement half way through and simply hand your car back in a fixed sum loan agreement.

Thanks, so does this "half rule" only apply to HP agreements? I'm rubbish with the terminology, but am I right to assume that a fixed-sum loan is different to a hire purchase agreement?

immoral_angeluk

Voluntary termination only applies to hire purchase agreements. If it's a bog standard loan the debt is not secured on the car so you can't hand it back.

geeba88

immoral_angeluk wrote: »

Voluntary termination only applies to hire purchase agreements. If it's a bog standard loan the debt is not secured on the car so you can't hand it back.

TBH i'm confused whether its an HP agreement or not. I found this comment on another post:

If it's an HP agreement it will say 'Hire Purchase' on it and it will give details of the car, if it just says credit agreement and there is no mention of the car then it's a loan.

The credit agreement is entitled "Fixed Sum Loan Agreement Regulated by the Consumer Credit Act 1974"

It does however have a full description of my car - so does this make it an HP agreement??

zppp

geeba88 wrote: »

TBH i'm confused whether its an HP agreement or not. I found this comment on another post:

If it's an HP agreement it will say 'Hire Purchase' on it and it will give details of the car, if it just says credit agreement and there is no mention of the car then it's a loan.

The credit agreement is entitled "Fixed Sum Loan Agreement Regulated by the Consumer Credit Act 1974"

It does however have a full description of my car - so does this make it an HP agreement??

It is not HP I'm afraid.

geeba88

This is the rule I was hunting for info on, "halves and thirds"

https://forums.moneysavingexpert.com/discussion/437346

The loan was arranged by the garage I bought the car from - it sounds like the car finance agreements mentioned in some of the threads above.

Also, the salesman who arranged the agreement did mention (under hushed tones) something about handing the car back half way through the loan - I didn't question him at the time.

I suppose contacting Santander is the only way to be absolutely sure

mc33033

geeba88 wrote: »

This is the rule I was hunting for info on, "halves and thirds"

https://forums.moneysavingexpert.com/discussion/437346

The loan was arranged by the garage I bought the car from - it sounds like the car finance agreements mentioned in some of the threads above.

Also, the salesman who arranged the agreement did mention (under hushed tones) something about handing the car back half way through the loan - I didn't question him at the time.

I suppose contacting Santander is the only way to be absolutely sure

The problem is you don't have a hire purchase agreement so ignore the halves and thirds - they have nothing to do with your agreement which is not hire purchase agreement, you are not hiring the vehicle you have purchased it with a loan.

By all means contact Santander but they don't have to do anything for you I'm afraid.

zppp

geeba88 wrote: »

This is the rule I was hunting for info on, "halves and thirds"

https://forums.moneysavingexpert.com/discussion/437346

The loan was arranged by the garage I bought the car from - it sounds like the car finance agreements mentioned in some of the threads above.

Also, the salesman who arranged the agreement did mention (under hushed tones) something about handing the car back half way through the loan - I didn't question him at the time.

I suppose contacting Santander is the only way to be absolutely sure

The reason I can tell is it is an agreement regulated under the Consumer Credit Act 1974 or CCA, as opposed to the Hire Purchase Act 1964, becasue that is stated on your agreement. The only way to go forward is to complain about what the salesman told you, but that is not going to get your car handed back or anything. If you are in financial difficulty, I would suggest contacting the CAB with the relevant documents to see if anything can be done, and more importantly whether it is (more than likely) a secured loan.