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Termination of Car Finance!
kelzbelz_04
Posts: 34 Forumite
in Motoring
Hi All,
If anyone is a finance whizz ...
My OH is a driving instructor and currently has a car costing £274.80 per month, which he loves!
However, he's had it a few years and would like to save some monthly ££!
He has seen in his credit agreement (which is from a main dealer) that he can terminate the contract at any time under the consumer credit act, as long as he doesnt retain the goods.
So he wants to return the car to the dealer (who he has a good relationship with), and then cancel the agreement!
... and then start again with hopefully a newer car and a better monthly deal.
My question!!! :
If he does this every 2 years or so, as long as its within his contract terms, would this affect his credit rating???
:money:
If anyone is a finance whizz ...
My OH is a driving instructor and currently has a car costing £274.80 per month, which he loves!
However, he's had it a few years and would like to save some monthly ££!
He has seen in his credit agreement (which is from a main dealer) that he can terminate the contract at any time under the consumer credit act, as long as he doesnt retain the goods.
So he wants to return the car to the dealer (who he has a good relationship with), and then cancel the agreement!
... and then start again with hopefully a newer car and a better monthly deal.
My question!!! :
If he does this every 2 years or so, as long as its within his contract terms, would this affect his credit rating???
:money:
6th January 2012 - THE FIRST DAY OF THE REST OF OUR LIVES! XXX
I WILL be debt free asap! :A Sealed Pot #1572
The 'extra payment every week' challenge:
This week = £5.00 Total So Far = £5.00
I WILL be debt free asap! :A Sealed Pot #1572
The 'extra payment every week' challenge:
This week = £5.00 Total So Far = £5.00
0
Comments
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You gotta be careful with the agreement,unless it's a specific business finance agreement one of the terms of the loan should read that the financed vehicle 'should not be used for hire or reward' ie a taxi,driving school,hire car etc.
'He can terminate the contract at any time' doesn't sound right,if it's a normal hire purchase agreement he may have the option to terminate halfway through but ref above,the finance company may throw it back at you if they know what the car's been used for.
How long is the finance over and how many payments have been made. Have you had the car valued and obtained a settlement figure?0
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