Voluntary Termination of financed car

slehc84

Hi all just a question,
my partner cannot afford her finance any more, being left in the lurch by ex husband. Rather than just return the car to the finance company who would sell it and then chase her for the outstanding amount( their words). Could she VT the car as she has paid over 50% and just walk away? I did look at the pre contract information and they state "The agreement is not cancellable under the 1974 Consumer Credit act or the timeshare act 1992 or the Financial Services (distant selling). She is greatly concern she cannot hand the car back without paying back the final 2 years after she has paid 3 years already and nearly doubled in payments the original cost of the car ... any advice?

forgotmyname

I think it depends on the finance, Only applies if the car is on HP? Im sure someone will clarify that later.

Sell the car, But make sure the buyer knows the car is on finance and get them to pay the finance company
directly. Depends if the car is worth more than the balance though.

If they miss a payment expect all sorts of threats from them.

The best one is it will affect my credit score and i wont be able to get credit. But the missed payment will already be
on the credit report so its already affecting your credit score.
If i could not pay them then why on earth would i want to apply for more credit?

alx33277

Is it a regulated agreement? - if so, the half rule will appy and she can just hand it back. If it's a non reg contract hire for example, this wont apply though...If you let me know the type of agreement and the lender I'll be able to confirm...HTH