Voluntary Terminate My Car Finance and Send it Back

Robo787

Hi,

I owe about £5000 on a 08 Reg Vauxhall Corsa 1.2 Club, and I'm a bit unsure as to what to do.

The payment's are £229.00 a month normally but the finance company want £329.00 a month for 8 months as there are some arrears on the account and then the payments go back down to normal.

I only have 17 more payments to make in all, but i am out of work at the moment and the payments will make things very difficult for me and my Wife and we also have an 11 year old Daughter to look after.

I have been told by the Finance Company that i can Voluntary Terminate my agreement and send the car back as i have paid more than 50% of the finance back already. The agreement was over 5 years.

It's just you get used to having a car and it might take some getting used to being without one until our financial situation improves.

Any Advice Appreciated.

Phil

passatrider

As far as I'm aware you will still have to pay the arrears you've racked up even after the car has been handed back. Untill this arrears is cleared in full then you will still be liable for full monthly payments.

I'm sure someone will correct me if I'm wrong but my mate was in a similar position and they would not accept the vehicle untill he payed his arrears off.

Robo787

Hi passatrider,

I have seen other posting's referring to the arrears, but the woman who i spoke to did not mention this, she just said the vehicle would go to Auction and it would be sold for the best price and if there was anything owing we could make arrangements to pay it off.

lesalanos

IMO they will not get any way near 5000 at auction.

continualdiamond

I did this with mine a few years back.

However you have to be at least half way through the agreement and payments have to be up to date for how long you've had it. So if you're 4mths behind in payment, you have to pay those arrears, surely no one would accept it back and thus basically have let you had the car for 4 mths for free.

The car has to be in 'reasonable' condition and they will look at it to make sure, well mine did with a fine tooth comb.

Be aware that if you wanna do HP again you'll have to do it over a smaller term.

When I sent my Saab back I'd had it 2 years so was a 4 year HP.

I then got my current car and orginally had it signed up for 4 years again but then the finance company rang me and said it had to be over 3 years as I'd terminated my previous one.

The Saab did of course go back without any issues, I was up to date with payment so it all went smoothly.

brokenant

Reasonable condition is an understatement. I returned a car half way through the finance a few years back, a 6 year old laguna, a couple of light scratches, expected stone chips for a car that age, light damage to one alloy wheel, and service done out of schedule (12000 miles came after 13.5 months instead of 12 months). I signed the car over and agreed to the minor points on the damage report.
I received a bill for over a thousand pounds.

Robo787

Hi All,

I intend to phone them either on Mon or Tues next week and tell them i'm sending it back and see what happens.