Voluntary termination of car finance

Lovetotravel

Can anyone give me an idea of how it works? It's been suggested to me by 2 car dealers and Santander is closed until Monday. I'm 2.5 years into a 5 year deal and owe more than the car is worth. It's very hard on petrol and I just can't afford it any more. I have cash to buy a new car, I will never EVER finance again.

It's been a hard learned lesson about buying on finance!

iolanthe07

Have a look at the terms & conditions on your copy of the finance deal. If it is Hire Purchase you generally have the right to hand back after half the payments have been made, but this may not apply if you have any defaults or late payments. Also beware that the finance company might be a bit niggly about any scratches or blemishes.

Lovetotravel

It actually says "you have no right to cancel this agreement under the CCA 1974". So I guess I'm stuffed then...

Lovetotravel

I don't have any defaults or late payments on the car.

BoGoF

Seems like you have a loan agreement as opposed to a hire purchase agreement then if there's nothing about voluntary termination.

Your only option if you want rid is to take the hit and sell it using the proceeds to pay off part of the loan, you will of course still be liable for any amounts still due.

What I don't understand is that you say you can't afford it but still have cash to buy another car?

SBCUK

what car is it? i maybe interested in purchasing off you?

iolanthe07

Lovetotravel wrote: »

It actually says "you have no right to cancel this agreement under the CCA 1974". So I guess I'm stuffed then...

Probably not Hire Purchase, then. The Motoring section of this site will have people who can help you if you decide to sell the car, but financially you're generally better off keeping the car you have, unless there are serious issues with it. I've changed cars in the past because I'm bored with them, and I make up excuses (too big, too small, too slow, uses too much petrol), but in my heart I know that the money saving thing to do is to hang on to them until they really are past it.

Apples2

SBCUK wrote: »

what car is it? i maybe interested in purchasing off you?

Lol:rotfl:you know nothing about the car other than it is petrol, and thirsty.

I've got a blue car you can have, send me £4,000 by paypal and it's yours. The blue car is worth £20k

SBCUK

Apples2 wrote: »

Lol:rotfl:you know nothing about the car other than it is petrol, and thirsty.

I've got a blue car you can have, send me £4,000 by paypal and it's yours. The blue car is worth £20k

You send me the car, then i'll send you the 4k, within, Paypal. :money:

Lovetotravel

BoGoF wrote: »

Seems like you have a loan agreement as opposed to a hire purchase agreement then if there's nothing about voluntary termination.

Your only option if you want rid is to take the hit and sell it using the proceeds to pay off part of the loan, you will of course still be liable for any amounts still due.

What I don't understand is that you say you can't afford it but still have cash to buy another car?

My plan was to part exchange my car, but it's worth half of what I owe, so that's going to be VERY costly. I have a personal load to cover the new car plus the difference. The last dealer I was at indicated the difference wasn't nearly as much as another has told me. So I'm in a real predicament.

I bought my current car when I was earning more money and doing less miles, but now I'm spending hundreds per month on fuel and I have other things I'd rather do with that cash.

chanz4

was the agreement over £25k?