car finance/ termination

vanessa123

i am about to hand back my vehicle as it is not worth selling as i owe as much as i would get. i have paid just over half my agreement and am entitled to do this, but after asking if the portion of money that has been paid more than i needed to was refundable, i was told no!. this seems unfair as my agreement states "we will then be entitled to the return of the goods and to half the total amount payable under this agreement." it then states how much that is and i have paid £300 more than that amount........ does anyone know if they are entitled to keep the extra.................thank you.

aurora_borealis_2

No you can't. Have you had your car inspected for return yet? You may be in for another shock!

inmypocketnottheirs

Also I am not sure how terminating your agreement would reflect on your credit file.

Additionally, almost anyone who buys a car on finance with a low/no deposit will always be in this position. Cars depreciate rapidly, and with interest added to finance there will almost always be a deficit. The only way IMHO to view buying a car on finance is that when it is paid off, whatever the value is goes towards the deposit on a newer vehicle.

Phoenix79_2

vanessa123 wrote:

i am about to hand back my vehicle as it is not worth selling as i owe as much as i would get. i have paid just over half my agreement and am entitled to do this, but after asking if the portion of money that has been paid more than i needed to was refundable, i was told no!. this seems unfair as my agreement states "we will then be entitled to the return of the goods and to half the total amount payable under this agreement." it then states how much that is and i have paid £300 more than that amount........ does anyone know if they are entitled to keep the extra.................thank you.

They are right. You aren't entitled to have it back.

You are allowed to hand it back assuming you have paid over 50% of the financed amount and on the condition that the account is up to date when you request the voluntary surrender. Also the car needs to be in decent nick (average wear and tear allowed) and you can't be over the agreed mileage otherwise you'll be getting another bill.

MonkeySaving?

Phoenix79 wrote:

They are right. You aren't entitled to have it back.

You are allowed to hand it back assuming you have paid over 50% of the financed amount and on the condition that the account is up to date when you request the voluntary surrender. Also the car needs to be in decent nick (average wear and tear allowed) and you can't be over the agreed mileage otherwise you'll be getting another bill.

HPI on cars generally don't stipulate an agreed mileage limit, it's the PCP/PCH schemes that do this. With an HPI car finance scheme you have to take the car to a designated auction site after it has been checked. Do like i did and go to the auction and re-buy the car for much less than the remaining HPI payment :T
Did get stung for £200 though for smoking in it! :rolleyes:

Phoenix79_2

D'oh...yeah you're right!

nomoneytoday

The 50% is the minimum amount of the loan to be paid off. Lets say you held the loan for another 6 months, added 6 months mileage, and depreciation, would you expect the car company to give you those 6 months payments back too?