Cancel a Car Agreement Question

mackers8923

I have heard rumours that if you terminate a car finance agreement as is your right to do so it can have an adverse effect on your credit rating. Can anyone tell me if this is in fact true and exactly it effects it?

I plan to terminate my car agreement at the half way point, simply to make way for a new car not to save money or anything. This is due to happen in Aug/Sep this year...

merlinormartin

hmm .. i can not speak for every finance company .. but my friend bought a car from arnold clark.. at the half way point she called them .. they arranged to collect the car a few days later ... no problems. I do remember her saying that the car had to be in "good" condition.

pigginsexy

No it does not affect your credit rating. All that is put on your credit file is VT (Voluntary Termination). Most lenders will see this and wont be bothered, some i suspect will. It all depends on who you go with, but by rights it should not affect any lenders decision.

Han

mackers8923

Thanks for the info that is a little more easing on the mind as I'm only around the corner from handing the car back.