Want to get rid of the car!! Help

Locana

Hi y'all

I have a car on finance, which is supposed to run for three years, and have now had it for 20 months. I heard that you can take it back after half way through the agreement, and would like to do this as it would save me around £200 permonth. How easy is it to do this and does it have any negative impact on my credit report? My CCj is due to 'drop off' next march, and by then would like to have a clean sheet (so to speak!)

Any advice please!!??

Lolo

CLAPTON

if your loan is HP then there is provision to return the car after a specific number of payments

read
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013226

LandyAndy

If this is a hire purchase agreement then there is a point (and I can't remember whether it is half or two thirds of the way through) when you can simply return the vehicle to the hire purchase company with no further liabilities and no adverse effect on your credit history.

peb

So long as it is HP (as mentioned above) and not a loan then the car can be returned so long as half of money owing has been repaid. Be careful in that there may be discussion on reasonable wear and tear/condition of the property so if there are any minor faults deal with them before returning the car - otherwise you may end up paying dealer prices and admin fees!

Good luck

rayday2

Years ago my first hubby handed his car back and yes the payments stopped trouble was the car was taken to auction sold less than the over inflated value at time of purchase and cost of finance and he was still left with a 2k shortfall to make payments on.

Its a tough decision and I hope you have better luck than my ex did!

Locana

Thanks for your help guys,

I looked at my agreement and unfortunatley it was 35 payments of around 180 per month, and then the payment 36 was the remaining balance of the car which amounts to 2500!!! If I want to hand the car back at that point I can without having to pay that final fee, but if I want it I have to pay it. By then the car may not even be worth that much. I should have looked at the t and c's when I signed but that was way before my lightbuld moment. Even though I am over half way through, I have another 4 months or so before I have paid half the full amount.

Next time (whichthere wont be!) I will know better... But thanks anyways!! And thanks CLAPTON for the link..