Car finance query

allan1983

Hi guys.

I have a Fiat punto which I was stung pretty badly for on a finance deal (naivety was my enemy!)
It was a 5 year agreement, and Ive now got just over 18 months to go on it.
Ive just rung for a settlement figure as Ill be getting a new car soon, and its about £700 more than I could sell the car for.
Ive read about the whole idea of Terminating the agreement as per the Consumer Credit Act Section 99, and its tempting in the interests of cutting my losses.
However, I cant seem to find info on wether it will adversely affect my credit rating?
Im not saying I cant pay any more, just that I dont want the car.
If anyone could advise me I would be extremely grateful.

On a separate point, when I bought the car I was sold GAP insurance by the dealer (there's that naivety again) and I can remember asking if I could buy it elsewhere and was told no. So this has made me wonder if it was in fact mis-sold?
Would a claim along the same lines a missold PPI be worth a punt?

Thanks in advance to anyone who's still reading, and to anyone who can shed any light.

Allan

Apples2

If it is a HP Agreement you can Voluntary Terminate the agreement (hand the car back and walk away). You could get stung if you have trashed it or otherwise devalued it (you haven't fitted illuminated washer jets or dustbin exhaust have you?)

It isn't a black mark on your credit file but it does get a VT marker. This just means other dealers/finance companies might not be so keen to take you on later (they know, that you know, you can walk off half way though the deal)

I don't entertain mis-sold anything, maybe someone else will answer that.

allan1983

Thanks Apples2

So it wouldnt necessarily go against me if I was taking a mobile phone contract or Credit Card or mortgage etc (things non car related)?

Apples2

Very unlikely, you just took advantage of a contract clause, you didn't break any kind of agreement.

Bottom line is you adhered to the contract in accordance with its terms.

poppasmurf_bewdley

Remember that if you VT the argreement, you may still be liable for the GAP insurance payments as part of the loan you took out will have been for that.

allan1983

Remember that if you VT the argreement, you may still be liable for the GAP insurance payments as part of the loan you took out will have been for that.

An interesting point and not one I had considered...

Can anyone offer any insight as to whether the GAP insurance was in fact missold though?

malkyh

allan1983 wrote: »

An interesting point and not one I had considered...

Can anyone offer any insight as to whether the GAP insurance was in fact missold though?

Are you only wanting to know this now due to the fact that you don't want the car anymore?

allan1983

no malkyh, if it hasnt been missold and I have to pay it for another 18 months, it just goes down to experience. A learning curve that I (hope) I wont need to go through next time.
I dont NEED the car any more, so with no point selling it as the balance left on the agreement is more than the value of the car, its just a simple cost cutting exercise.
I just wonder if I could in fact claim the GAP back. Better in my pocket than theirs I thought...