Car Finance Hand Back?

jimbo2010

Hi we are just over 2.5 years into a 4 year hp agreement on our car and have paid over 50% back, i understand we can return the car and walk away without any comeback is this correct.

I read that the car needs to be in reasonable condition but what do they class as reasonable? The car has some scratches on it but the car is 7 years old so that is to be expected, it also has MOT till Jan and is taxed until Dec.

Is this a hard process to do and is there any negative points like would it affect my credit file?

poppasmurf_bewdley

As long as it is stipulated in your HP agreement, you can return the car.

It will need to be in a reasonable condition. You can cash in the car tax before you return the car.

You have to remember that to use Voluntary Termination, you have to have kept to the conditions of the agreement - ie have had no missed or late payments. If you have, then the HP company is within its rights to refuse your VT as you have broken the agreement.

SeanG79

When you choose the voluntary termination route, your credit profile will be marked "VT", that will not impact on your credit profile directly, but with some lenders, when applying for future car finance you may be offered restricted terms e.g. if you apply for 5 years on car finance, the lender may come back and only offer 36/42 month term.

As mentioned above, you have to have adhered to the conditions of the agreement.

interstellaflyer

I did a voluntary Termination 4 years ago, half way though the finance term, the problem I had was the clown from the RAC that they sent to inspect the car, small scratch on door was reported as estimated £500 to put right, I had a quote for £80, he reported fluid levels as low when the only fluid that was low was the washer bottle, the important ones ie oil and coolant were full, he was unable to start the car due to flat battery so he reported unable to check mechanical condition, my O/H left him to it, I was at work, funny thing was that the car started fist time for me when I tried it, he also reported the interior condition as poor when in fact it was in bl@@dy good nick for a 7 year old car with cream velour interior that had 90,000 on the clock (I bought it at 70,000). The other problem I had was it took the finance company 4 months to get the car inspected, no wonder the battery was low, I wasn't using the car.