Help! Returning a car on lease early- credit score

gem.123

I need some help as I have a car on lease with around a year left followed by balloon payment. I have recently been given a company car and so want to return the car now, I have spoken with BMW and this is fine, however it has just come to my attention (from some googling) that this is going to have a huge affect on my credit score. We are looking to move in the summer and I am now worried that it is going to affect our mortgage application. Can anyone offer any advice here?

Thanks

TradePro

It sounds like you have the car on a PCP agreement? If so, it's quite simple - find out how much the dealer will 'buy' the car for, and compare this to the outstanding finance amount.

If it's worth more, you have some money due to you, if it's worth around the same, have the dealer just settle the finance. If it's worth a little less, add the necessary cash to settle it off. If it's worth a lot less, either hand it back and take the 'knock' to your credit rating, or keep it for the final year and hand it back without any consequences then.

Hope that helps, let me know if my suggestions were unclear and I will happily elaborate.