The Halves & Thirds rule for returning a financed car?

Mark1892

I'm currently looking for a new car and wasnt sure about how to pay for it, HP, PCP etc. It has been mentioned to me buy 3 different salesmen that this is now a popular option. Simply put, take the car over a long period, 5 years, then after half the term simply hand it back with no charges and no marks against credit history and then do the same again. I still think its too easy but apparently not. I suppose one of the negatives is you never own the car so basically leasing it instead.

also i suppose there is nothing to stop you from going to the auction as well to see if you can get it at a bargain price;)

Andyt32

Hi - I have an agreement with Capital Bank (RBS) and will be half way though the payments in August. I am in negative equity to the tune of 4k - it says on my agreement that I do not have the right to cancel under the Consumer Credit Act 1974? Can anybody shed any light on this?

Cheers

mofopants

as far as i am aware, when you have paid 50% of the agreement then you can hand it back to the finance company. My dad did this earlier in the year and had no problems.

maeday

I called BMW finacne about mine as the repayments are now too high in my current situation, they said my agreement is un regulated? as i took it out before 2008 anyone know if this is true or are they blagging me
The car is in the negative to the tune of about 7k so the halves and thirds option appealed

mrsJef

Just hoping to help by chipping in my little bit of knowledge from working in car-sales for a short time.

Unregulated finance agreements are much harder to get out during the term which is why they were changed. All regulated finance agreements should have in the document somewhere that once you have re-paid half of what you originally borrowed then you have the right to hand the car back to the finance company and cease the contract. Obviously finance companies do not like people using this clause as they end up out of pocket! This is why it is a little discussed clause. As far as i am aware ALL lease purchase agreements have this clause as this was our best selling product and we used to sell it based on this clause!
Different finance companies have different products for different customers-some will only put lease purchase on cars over £25k other will do it on cars over £5k etc.

Make sure you read & re-read any paperwork you have before attempting to hand back car to make sure you understand any costs they can charge for especially if its going back to a main dealer-get any small jobs done yourself first as they will & have charged £100's-£1000's for silly things. & if possible get the finance company to put in writing what the process is for handing back & costs charged etc.

Hope that helps someone! X