Handing Back Car on Finance

donroobles

We have a car on finance and into the 3rd year of a 5 year finance deal.

Recently we have had twins and we also have a 12 year old so this car which is a Mini is now way too small for our family.

We want to get a bigger car but the garage/finance company are not interested unless we give them £2000 to clear the finance and hand the car back in order to get something else

We would like to get rid of the car and get a larger car somewhere else and we are wondering how do we get out of this finance etc.

Full time working and renting

Any help please?????

forgotmyname

Depends on the actual finance type, If its a personal loan you wont be able to hand it back etc.

If its some form of personal loan with no option of handing it back. Only option would be keep paying or selling it.
Part ex and let the dealer pay off the finance, Issue with that is your paying interest on interest. It may cost a lot more compared to paying it off.

What exaxtly is the finance type? How old is/was the car?

donroobles

Hi thanks for the reply.

Its not a personal loan it was financed thru the garage where we bought the car who have their own finance company. I dont have the paper work to hand but will have later today and will post more details. Many thanks

wba31

this fact sheet courtest of National Debtline is worth a read

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

I usually convert it to PDF (right of the page) which makes it easier to follow

Dublindel

I believe that under finance agreements, you are entitled legally to return the car and terminate payments with no effect on your status providing you have paid more than half the payments. I will look to verify this

gkerr4

whoah - before you go handing any keys back - whats the value of the car? - is it more than the £2k you are being quoted to close the finance?

if it is, then there isn't a problem is there - you simply sell-up, pay off the loan, use the balance of equity in the car as your new deposit.

I generally finance my cars over 4 years and aim to change every 2 to 3. The payments (generally) keep track of the depreciation and i should in theory carry the deposit forward from one to the next, give or take.

I try to arrange new finance through personal loan (which is generally more favourable rates than dealer / garage provided finance - assuming you have the credit rating) and you will find that on you application for a personal loan it will ask if you have any existing loans and if you are paying them off. - borrow what you need, pay off the existing finance, then go looking for your new car with a paid off car and a bit of loan cash in your pocket.

donroobles

thanks for all your replies and help. Today i managed to get a dealership to take my car,sort out the finance and debt and get myself a new car. Guess they need the business in these times and i also guess my credit was better than i thought!. Anyway all sorted cheers

bris

donroobles wrote: »

thanks for all your replies and help. Today i managed to get a dealership to take my car,sort out the finance and debt and get myself a new car. Guess they need the business in these times and i also guess my credit was better than i thought!. Anyway all sorted cheers

It's called a trade in, believe me they didn't do you any favours.