Question re car finance.

Honeybee_2

As I understand it, a car on hire purchase can be returned after 2/3 of the loan is paid off. (or whatever the company specifies need to be paid as it can differ)

What about a personal loan from a car finance company? Is there any get out clause for one of those?

immoral_angeluk

Depends on your agreement. Sometimes they give you a settlement figure after a set amount of time. For example with our loan after 2 years we'd have to pay back £4000 before we could sell the car.

duncans-mum_2

I guess if it is a personal loan for nothing specific then it wouldn't work in quite the same way, as you do not have something physical to return to the company in lieu of the outstanding payment. However, as immoral_angel said, get in touch with them to find out a settlement figure, if you are able to pay any remaining lump sum.

Phoenix79_2

A loan is a loan....just that. A Car finance deal allows the car to be returned after 50% of the financed price has been paid and you are up to date with payments. Its called a voluntary surrender. Its only applicable on CCA reg agreements which should be the vast majority of these sorts of deals