car finance

ian1986

Hello All!!

I was wanting a little bit of info if anyone could point me in the right direction please.
I have a 06 fiat punto on finance and i don't finish playing for it till march 2015
I am looking to get rid of it as its to small for my growing family.
i still owe £2700. i went to Evan halshw today and they where going to give me £1300 so i would have a negitive equity and it bumped the payment up on the car i was looking at so that option is out the question. so....
i was thinking of handing the car back to the finance company.
i will have paid 50% of the car in march 2013 BUT will this affect my credit rating/score ???
i don't want that to happen as i have tried really had to have a good name,
Would really welcome so advice. :D

Chorlie

I don't know if it will effect your credit score or if you can just hand the car back, it would depends on the terms of the finance. However if you hand it back now you've paid 50% and nothing to show for it.

Could you sell your car privately for more that £1300?

But always shop around for your loans if you do it via the dealer often its more expensive with extras that aren't always needed. Look at the like of Tesco Finance or Bank / Build Society for a Loan.

used_car_manager

ian1986 wrote: »

Hello All!!

I was wanting a little bit of info if anyone could point me in the right direction please.
I have a 06 fiat punto on finance and i don't finish playing for it till march 2015
I am looking to get rid of it as its to small for my growing family.
i still owe £2700. i went to Evan halshw today and they where going to give me £1300 so i would have a negitive equity and it bumped the payment up on the car i was looking at so that option is out the question. so....
i was thinking of handing the car back to the finance company.
i will have paid 50% of the car in march 2013 BUT will this affect my credit rating/score ???
i don't want that to happen as i have tried really had to have a good name,
Would really welcome so advice. :D

first question is it on HP?

if it is you can hand it back when you have paid half the total amount payable.

if its a motor loan or personal loan set up by the dealer the you wont.

You need to check your finance doc for a section called "termination of your rights" the amount will be there

to calculate it you dont just work your payments out, you will also need to include any deposit, doc fees on 1st payment etc as these are included;)

it wont go against your credit rating as its stated in your finance contract that you can do this, you havent defaulted.

what you need to work out is how far away from half way you are because you can "pay up" to get to the half way..

let me know your monthly payment, date of 1st payment or how many payments made, original cash deposit if any, doc fees and i will work it out.

another tip, cash the tax disc in thats yours.

Also dont let them collect the car to take to the auction, you may find yourself a bill for £300-£400 :eek: take it yourself
What you need to remember is the finance company dont sell cars so the car goes to auction and they will get trade price, they are about to lose the remainder of the interest they would have got from you and some capital so the auction transport charge is a last attempt to get some cash from you...

so get everything in writing, some companies dont charge the transport charge but some do but they wont tell you

before you do the voluntary termination make sure you have finance in place as if the car went back and you then couldnt get a car on finance it would be a tad painful

used_car_manager

forgot to say i will need finance term too

ian1986

Hi thank you for your reply's. sorry for my late reply been so busy.
yes it is on HP and my term is 48months . i am on my 22nd month with the car so I'll have to wait till march till i have paid 50% of the car.
I rang up closer finance (that's my finance company for the car) and i asked the woman on the phone, ( if i hand the car back when i have paid half will it affect my credit score??), the woman said yes!! as its like a default as i have not seen out the full term of the loan period.
i feel am stuck in a corner and have no options. Grrr

forgotmyname

Have you double checked the paperwork? My sister though she had HP but it turned out to be a personal loan.

FAQ from their website...
This doesn't look right... So you make ALL the payments then you can hand it back?
Why would you want to do that?

Have i mis-read it?


FAQs
Hire purchase

A hire purchase agreement is similar to a conditional sale agreement. The only difference with hire purchase is that you don’t have to take legal ownership of the vehicle. Once all payments have been made you have the option to simply hand back the vehicle to us or to take title of the vehicle.