Car finance

doelani

Sorry if wrong section

If my DD was to " voluntry terminate" her car agreement would this effect her getting another car on HP right away ?

She bought a new car a few years ago and at the time the dealer said she could give it back after half was paid and then buy another car. Is it really as simple as this?

Car is in perfect condition, less than 15k miles and no marks on it.

thanks

CLAPTON

it will show on her credit reports at a VT (voluntary termination
it will not affect normal credit application but obviously a HP lender would take it into account.

anyway why doesn't she save up for things she wants rather that incur all that interest?

doelani

CLAPTON wrote: »

it will show on her credit reports at a VT (voluntary termination
it will not affect normal credit application but obviously a HP lender would take it into account.

Have just found the agreement and there is a termination amount, I jsut do not know anyone who has ever done it. The dealer seems to be promating this as a way of changing your car every few years, such seems weird lol

CLAPTON

doelani wrote: »

Have just found the agreement and there is a termination amount, I jsut do not know anyone who has ever done it. The dealer seems to be promating this as a way of changing your car every few years, such seems weird lol

dealer makes money on every car sale and every credit agreement that he sells

obviously he sees it as a 'good' thing; nothing weird about that

only weird thing is why DD wants to spend all that money paying interest on a new car when her existing one is presumably working OK.

doelani

CLAPTON wrote: »

only weird thing is why DD wants to spend all that money paying interest on a new car when her existing one is presumably working OK.

I have tried to talk her out of it , still trying. Nothing wrong with car, low milage, low repayments. I would not change it but if she decides to do it not a lot I can do to stop her .